NYC 9/11 Public Portal Document
FINAL DRAFT " I" '
L Short-term Recovery Package for "Affected" Taxpayers
WIZ.
Extend exlstIne "Empire Zone" provisions to "affected taxpayers" located in the
disaster zone
Description: This proposal would encourage development in
the defined disaster area
by amending the current state economic
development provisions to include taxpayers
directly affected by the September 11th terrorist attacks.
Specifically, "affected
taxpayers" are those entities originally located in the
"disaster zone" on September 11:
2001 as declared by President Bush, which decide
to relocate anywhem in New York.
The proposal would includ-a the extension of the
following benefits to affected
taxpayers:
• An additional 5% ITC
• A sales tax exemption
• A refundable credit of real estate property tax
against the slate franchise tax
• An employment credit of $1,500 per person per year
up to a maximum of $7,500
over 3 yearn
• A refundable credit for portion of business activities
conducted in the New York.
Extend and Expand the Ina'estment Tax Credit and
Employment Incentive Credit for
Affected Taxpayers
Description: The Investment Tax Credit for Broker/Dealers and
qualified banks is
scheduled to expire on September 30, 2003. The current
credit provides taxpayers a
credit against taxes paid on technology-related
equipment such as computers and
telecommunications devices used directly in the firms principal business.
technical matters described below need to be addressed so The ITC
that the taxpayers affected by
the tragedy are not penalized.
The proposal would include the following technical
changes:
Make the ITC permanent The NYS ITC for Broker/Dealers and
qualified
banks is due to expire after September 30, 2003. Given that the
affected
taxpayers need to replace fixed assets that were destroyed, an
extension of the
ITC is warranted.
Suspend the principally engaged in test. More than 30% of a
Building's
Occupants Must be "Revenue Producers": In order for a building's
cost to
quality for the ITC and EIC, more than 50% of Its occupants must
be revenue
producers. As a technical matter, depending on the job function of
the WTC
employees relocated to alternative buildings in NYS, the 50%
revenue producer
requirement may be negatively effected. This may be the case
since WTC
employees who are non-revenue producers may be relocated to
buildings,
which would have• otherwise met the 50% requirement. Relief
from this
NYC-WTC 000136671
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