In a recent twist, Solyndra’s investors could be rewarded for their failure, thanks to a tax benefit the Obama administration handed out in a bid to evade political accountability, says the Wall Street Journal.

Having sold off its manufacturing plant, fired nearly 1,000 workers and proven the non-viability of its business model, Solyndra’s only real assets are what the IRS calls “tax attributes”, such as loss carry forwards and solar tax credits.

Tax-loss carry-forwards are routine but worthless if a company can’t turn profits to pay taxes on. So Solyndra’s owners are asking the court to liquidate the rest of the business and contribute a net $6.7 million to pay off creditors for pennies on the dollar. A holding corporation will then emerge from Chapter 11 that won’t make products or employ workers, but it will get the Solyndra tax offsets.

Under the bankruptcy plan, taxpayers will recoup $27 million at most on Mr. Obama’s $535 million “investment.” The IRS formally objected to Solyndra’s Chapter 11 reorganization plan, claiming its “principal purpose is tax avoidance“and along with he Energy Department are now asking the courts to reject the deal.