WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

provision is necessary so that the affected taxpayers' eligibility for the ITC and the EIC is not jeopardized. Suspend the ITC :recapture provisions for property destroyed by reason of the terrorist actions: Destroyed Property May be Subject to ITC Recapture. The destruction of ITC qualifying property as a result of the tragedy seems to be a "disposition" under NYS Reg. Section 5-2.8(c)(9), which requires a recapture of ITC. Under this rule, "a disposition of qualified property includes: loss of the property due to fire, theft storm or other casualty." The application of this rule to the affected taxpayers should he revised, such that the loss of property resulting from the tragedy is specifically excluded. Suspend Employment Level Requirements: In order for a financial services firm to secure the ITC, the firm must demonstrate that its employment level in the year that the qualified property is placed in service is at least 95% of the average number of its administrative and support personal employed in NYS during the prior 36 months. Therefore, as a technical matter, the WTC employees which are no longer in NYS, due to number of temporary relocation or otherwise, may have a negative effect on the ITC for 2001. This test should be suspended fox the affected taxpayers. Suspend the requirement that property be used in NYS for the temporary displacement of property to New Jersey. Expand iTC to Include property acquired for use in New York, including all equipment, leasehold improvements, F&F used by service businesses or their affiliates. Expand ITC to include property used in security measures. Affiliated Entity Transaction "Safe Harbor" Legislation

Description: Affiliates affected by the disaster should not have to pay Commercial Rent Tax (sub leases), NYS Sales and Use Tax (equipment usage), Transfer Taxes, or other impositions otherwise applicable to transactions by and between affiliated companies. These taxes should be inapplicable to any inter -company transaction within NY, which results from transactions made necessary by the tragedy. Suspend the Growth in Employment Test for Emnplo ipntIncentive &edititlCj Description: RIC is availabl.a for property qualifying for the ITC. The EIC is an additional credit of up to 2-5% available for each of the two years after ITC, is claimed. The eligibility for this credit is predicated on a requisite employment growth in each of the two years. As a technical matter, the fact that :o temporary relocation or otherwise, employees are no longer in NYS, dew may have a negative Impact on this growth requirement. This requirement should not apply to the affected taxpayers. Suspend the Commercial kent Tax for affected taxpayers

Description: The City should eliminate any additional Commercial Rent Tax ("CRT") or any CRT on replacement real property within NYC that affected taxpayers incur ac a

NYC-WTC 000136672