WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

increases corporate income. In addition, for small businesses, these tax changes would also provide access to much needed capital. Shortening the depreciation life of utility property would also benefit consumers through lower utility bills as utilities experience a reduced cost of replacing damaged or destroyed infrastructure.

III. Incentives for Relocation or Expansion in Lower Manhattan ➢ Federally-Backed Sales Tax Exemption

Proposal: Provide a refundable credit against federal income and corporate taxes for the purchase of replacement goods by residents and businesses who can document uninsured losses. This would apply to parcels within the lower Manhattan impacted area. The replacement goods and services would be free of State and local sales taxes, and the Federal Government would reimburse the State and localities for tax receipts lost.

Reasons for Change: This proposal would encourage businesses in the impacted area to remain and retool and would also allow affected businesses to upgrade to the latest equipment available at lower cost. The proposal would primarily benefit small businesses that lack disruption of business insurance and are under-insured for property losses. It would increase GDP through both business investment and consumer spending.

> Investment Tax Credits for Equipment, Security Systems and Smart Buildings Technology Enhancements

Proposal: This proposal consists of two components. The first component would be an investment tax credit of 10 percent on the purchase price of tangible property (broadly defined) within the zone. Property would include, for example, computers, office equipment, and business vehicles. Taxpayers would also be allowed an investment tax credit or deduction for costs related to increasing or replacing security devices, such as surveillance equipment, and security stations.

The second component would create Smart Buildings Technology Enhancement Credits to be used against Federal income and corporate taxes. It would create the SMART Whole Building Credit Component, the SMART Base Building Credit Component, and the SMART Tenant Space Credit Component. The credit amounts would be 15 percent for the SMART Whole Building, 10 percent for the SMART Base Building, and 10 percent for the SMART Tenant Space. Credits would increase 5 percent for each component if a newly constructed building was located in the area below 14th Street in Manhattan. It would apply the same square footage

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NYC-WTC 000136770