NYC 9/11 Public Portal Document
➢ Credit to Small Business for Interrupted Business Losses
Proposal: This proposal would provide a credit against Federal income
and corporate taxes equal to 50 percent of the loss in sales for businesses
below 14th Street who were unable to open due to the events of September
11. The credit would only apply to those businesses without business
interruption insurance and to businesses with gross sales below $5 million
per month.
Reasons for Change: Many small businesses do not carry business
interruption insurance. As a result, many small companies in the World
Trade Center area face bankruptcy as a result of the events of September
11.
> Property Loss/Damage Credit
Proposal: This proposal would provide a credit against Federal income
and corporate taxes for companies and individuals that had property
permanently lost or damaged in the World Trade Center attack. The credit
would be equal to 100 percent of losses on items that were not covered by
insurance at the time of the attack, with a cap at $1 million for businesses
and $25,000 for individuals.
Reasons for Change: Many taxpayers did not have full insurance
coverage for the property that was destroyed in the attack on the World
Trade Center. This is especially true of small business owners. This
proposal would help taxpayers replace those damaged items not covered
under their insurance plans and quickly return to them to normal business
operations.
III. Incentives to Retain and Expand Employment in Lower
Manhattan
➢ Employee Retention Credit
Proposal: This proposal would provide an employee retention credit
against Federal income and corporate taxes for disaster affected
businesses. The credit would be between $5,000 and $10,000, depending
on the number of current employees over a base year. The credit could be
used to supplement the wages of employees who choose to relocate or
return to lower Manhattan.
Reasons for Change: A significant number of major financial services
firms have either temporarily or permanently moved operations outside of
Manhattan. These include both back office operations and corporate
offices. This proposal would provide an added tax incentive to encourage
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