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WTC Records Folder 0140 label, 2001

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Archival folder label from the Office of the Mayor for World Trade Center records, identified as Folder 0140.

NYC-WTC_000136670–000136818

Folder label: “Folder 140

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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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NYC-WTC_000136699Source: NYC Law Department, mirrored locally

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