Sales tax exemptions for renewable energy firms are targeted

Lockyer, who heads the panel, said he will ask fellow members of the California Alternative Energy and Advanced Transportation Financing Authority at a meeting to not approve any new applications for tax exemptions. The program is aimed at encouraging the purchase of equipment used to make solar panels and other energy-saving projects.

The tax breaks were authorized last year by the California Legislature when it passed a bill, SB 71, by Sen. Alex Padilla (D-Pacoima).

A decision on the request is not likely before late October, a spokesman for Lockyer said, and no new applications are pending.

"SB 71 created a tax exemption for businesses that requires a level of transparency and public accountability rarely, if ever, seen in California or anywhere else," said Lockyer in a statement released by his office. "But every government program can be improved."

He added that "in light of recent events" — the potential loss of a $535-million federal government loan guarantee to Solyndra, a bankrupt Fremont solar panel manufacturer — "we owe it to the taxpayers to see if there is more we can do to make sure we don't give their money to companies headed for a fall."

The authority had approved $37 million worth of sales tax exemptions for Solyndra, but the company used only $25.1 million to buy equipment before it closed.

The authority approved a total of 32 sales tax exemption applications, valued at $104 million, of which $31.4 million has been used, the treasurer's office said.

marc.lifsher@latimes.com