Alcoa (AA) said that it expects to incur a noncash charge of about $80 million in the quarter ended March 31, 2010, in connection with the reduction of income tax deduction for the costs of providing prescription drug benefits to retirees under the new health care law.
Some question the legitimacy of the charges, wondering whether companies had basically been "double dipping" through these subsidies in the first place.
Also, the income tax deduction doesn't kick in until 2013.
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