NYC 9/11 Public Portal Document
II. Incentives for Relocation or Expansion in Lower Manhattan
➢ Federally-Backed Sales Tax Exemption
Proposal: This proposal would provide a federally backed sales tax credit
for the purchase of replacement goods by residents and businesses who
have uninsured losses against Federal corporate or income taxes. The
replacement goods and services would be free of State and local sales
taxes. The Federal Government would reimburse the State and localities
for tax receipts lost as a result of the tax cut.
Reasons for Change: This proposal would encourage businesses to
remain and retool in the Recovery Zone 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.
> Federally-Backed Exemption from the New York City Commercial Rent
Tax
Proposal: The proposal would provide a credit against Federal corporate
tax and individual income for the cost of the New York City Commercial
Rent Tax below 14th Street.
Reasons for Change: The proposal would encourage relocation to lower
Manhattan by eliminating a significant cost.
➢ Investment Tax Credits for Investment in Equipment and Security
Systems
Proposal: This proposal would allow taxpayers 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.
Reasons for Change: Investment tax credits have been critical in
encouraging capital investment. This proposal would provide an added
incentive to replace damaged or destroyed property in a timely manner. In
addition, taxpayers would have an incentive to invest in security system
upgrades. It would reduce taxpayers' liability, while improving infrastructure
and spurring investment and improving security.
C:\windows\TEMP\4point stimulus plan.doc a
NYC-WTC 000136699
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