WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

Summary of New York State 4- Point Economic Recovery Plan

WORLD TRADE CENTER RECOVERY ZONE The State proposes a number of federal tax relief proposals to provide incentives to rebuild New York, and Lower Manhattan. These proposals would be available to businesses and residents that were permanently or temporarily displaced after the disaster and include among others: • Increased depreciation deductions for eligible businesses who build in New York • Deductibility of sales tax incurred in the acquisition of property from federal taxes • Tax credits against state and local takes such as the CRT (below 141h Street) and the sales tax for replacement of goods by residents and businesses who have uninsured losses • 10 % Investment Credit on the purchase of tangible property in the Zone (equipment and security systems) • Credits for property losses and uninsured business losses of small businesses • Employee retention credit against Federal taxes for businesses remaining in the Zone • Refundable credit against Federal income tax equal to $10,000 for individuals who live below Canal Street with adjusted gross income below $150,000 • Doubling Private Activity Bond Authority to $2.8 billion and broaden eligibility

SUPPORTING FAMILIES AND DISLOCATED WORKERS In addition to President Bush's proposals to extend unemployment benefits, and provide grants for health insurance, income supplementation and job training, New York requests the following assistance: 1) 100% reimbursement for COBRA premiums for dislocated workers; 2) federal reimbursement of increased contributions of $260 million to the Unemployment Insurance Trust Fund; 3) Extend unemployment insurance benefits beyond 26 weeks, funded by the federal government; and 4) streamline Welfare to Work funding by easing restrictions.

ECONOMIC RESTITUTION The State is seeking unrestricted Federal economic aid to cover the loss of tax revenue to the City and State. The State is currently processing the data necessary to determine the actual revenue impact.

ENHANCING PUBLIC INFRASTRUCTURE AND SAFETY The State is seeking support for new Federal funding to advance infrastructure projects that will create jobs and build quality communities. Any stimulus package should include programs for mass transportation, highway and bridge investment and inter-city rail investment. The State proposes that new federal funds would support the acceleration of the MTA capital plan, the completion of the design of the East Side Access Project, accelerate engineering for the Second Avenue Subway, make safety improvements to Penn Station tunnels and improve rail and highway connections to ports.

NEW YORK STATE EMERGENCY ECONOMIC STABILIZATION PROGRAM The State will establish a $100 million Emergency Economic Stabilization Program to create and retain jobs and increase economic activity. Specific programs could include: • Tourism Promotions • Grants and Loans to businesses • Funding for business marketing and international trade promotion • Comprehensive initiatives for revitalization of distressed areas such as Niagara Falls • Workforce Development and employment incentives for dislocated workers

This program will be financed by State dollars, but the State will still seek federal reimbursement. In addition, the Governor will propose legislation that exempts public building construction from the Wicks Law, and legislation that would expand insurance coverage for business interruption to include economic loss due to acts of a civil authority.

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