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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

➢ 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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NYC-WTC 000136701

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NYC-WTC_000136701Source: NYC Law Department, mirrored locally

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