WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document P f

11/06/01 THU 11:32 FAX 4 1664 + ASST SECRETARY OF SENATE :~. ®00

'New York, we need to provide tools that will lower the cost of construction, mcanstruetion, and

rehabilitation.

This Rebuild New York City Private Bonding Authority would enable developers and

their clients to access lower interest rates for the debt financing they typically use to build

commercial and residential space in New York City by permitting them to take advantage of

triple-tax exempt bonds (no federal, state, or city taxes).

Under this provision either the City of New York or the State of New York could issue

the bonds on behalf of a project. To ensure that it would only be used to finance the most

important projects, the Mayor of New York would have to approve of the use of this bonding

authority for any qualified project. All of this bonding authority could be used within the New

York City Recovery Zone, but it need not be. The provision allows up to half of the bonding

authority to be used anywhere within the City of New York.

3) Incentive to encourage the reinvestment of inauranec proceeds in NYC:

This provision would allow companies that sustained property damages in the World

Trade Center tragedy to receive a preferential deduction on that destroyed property if they

reinvest insurance proceeds received for that damaged property in equipment purchases that arc

subsequently put into use in New York City. This incentive would give the companies whose

facilities and equipment were physically destroyed in the WTC disaster an additional incentive to

remain nnmmitted to New Yorir City.

Example. 4 company owns a computer with a depreciable basis of $500. (They

originally bought it at $1,000 but have depreciated $500 over a set schedule.) That computer

got destroyed in the WTC tragedy and the insurance company gives them $1, 000 to replace U.

Under current law the company could depreciate the remaining $500 in basis over the regular

depreciation schedule. Under this provision, they can deduct the remaining basis — $500 — in

one year tithe replacement property is put into use IM New York C:tty_

*Current Cost Estimates

NYC-WTC 000136567