Mich. Seeks Jurisdiction Over A123's $100M Tax Break Transfer

Law360, New York (March 6, 2013, 11:07 PM EST) -- The Michigan agency that awarded bankrupt battery maker A123 Systems Inc. up to $100 million in tax incentives asked a Delaware bankruptcy judge Wednesday to abstain from ruling on whether these agreements can be passed on to the company's new owner, saying the issue should be handled in Michigan.

Michigan granted the tax breaks to A123 under the since-repealed Michigan Business Tax and state law now forbids the agreements from being transferred, according to a motion filed by Michigan Attorney General Bill Schuette.

The state has...
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