WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

differential benefits for employees willing to relocate or return to lower Manhattan; adepreciation Federal income tax credit for individuals who live in the zone; increased certain deductions for eligible businesses who build in New York; tax-free rollover of from small gains from the sale of Recovery Zone assets; an increased gain exclusion machinery business stock in an eligible business, tax credits for investment in buildings, and equipment replacement; and tax-exempt bond financing.

I. Incentives to Rebuild in New York New York The following proposals provide incentives for businesses to remain in State and ultimately rebuild in lower Manhattan.

➢ Additional Private Activity Bond Authority. Private activity bond volume purposes, cap enables tax-exempt bonds to be issued for specific private which would otherwise be taxable. Depending on market conditions, a grant of volume cap can reduce borrowing costs by between two and three percentage points. Examples of currently authorized purposes include:

• Small issue manufacturing; • Single family housing; • Multi-family residential rental; • Water, sewer, solid and hazardous waste disposal facilities; and • Electric, gas, heating and cooling.

The State supports the National Governor's Association proposal to lift all states private activity bond volume caps as a way to stimulate the national economy. In addition to this, New York will require an expansion of the eligible categories of cap authority to address the State's enormous economic development needs that have arisen in the wake of the terrorist attacks on the United States. If the NGA proposal is not fully implemented, then, at a minimum, the following actions should be taken to address New York's special circumstances:

Double the New York State Private Activity Volume Bond Cap to $2.8 billion;

Create a new category of cap authority which would include the rebuilding of destroyed commercial space or communications infrastructure lost or damaged in the terrorist attacks; and

Any modifications should remain available to the State for up to five years to address the time necessary to reconstruct lost commercial space and/or communications infrastructure.

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