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Wednesday, March 14, 2012

State Unlikely To Recoup Evergreen Aid

State taxpayers will likely end up getting burned by Evergreen Solar to the tune of $10 million, or nearly a third of the Patrick administration’s ill-fated investment in the clean-energy company.

The bankrupt solar panel maker expects to sell its shuttered Devens factory — where it wiped out 800 jobs last year — and fork over $5 million to MassDevelopment in a settlement. . . .

The state will still be $9.6 million in the hole on its estimated $31 million investment in Evergreen, even after factoring in the sale proceeds, a voided $7.5 million tax credit and $8.9 million in tax revenue while the Devens plant was operating.” (Boston Herald)

If this sounds familiar, it’s because this is how State investment works. Or rather, fails to do so.

FEE Timely Classic

Private Investment and Public ‘Investment’” by Adam B. Summers