WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

'OCT 23 2001 4:42 AM FR NYC [CON DEV CORP12 312 3913 TO 95180234 P.01 1u:23:o1 TUE j2!4s FAX 4 1661 ASST SECRETARY OF SENATE lj (IC 2

'2,

DRAFT FOR DISCUSSION PURPOSES ONLY

New York Econondc Recovery Tax Program

The goals of the New York Economic Recovery Program are to: 1) keep Manhattan businesses and residents committed to the city following the 9/11 terrorist attacks current loss in tax revenue to the city and state is estimated at $ t2 billion, acid 2) rebuild lower Manhattan. Preliminary estimates place the number of jobs lost at over 100,000.

Lower Manhattan Economic Recovery Zone Tax Credit: ..................S2.5 billion

$3,000 annual per employee Federal tax credit to encourage employers to locate or remain located in the Lower Manhattan Recovery Zone (Manhattan south of Canal Street), which would last for five years. Employers could claim this credit only for employees with annual salaries at or below 5150,000.

Rebuild New York City Bonding Authority: ................................... $1.5 billion

Up to S15 billion in Federal tax-exempt bonding authority to enable the replacement of the 20+ million square feet of lost commercial and residential space in and around the Zone. The Federal government would guarantee all or a significant portion of the bonding authority to enable projects to secure more favorable terms. In addition, the bonding authority would not be subject to the qualified private activity bond caps that govern other issuances of municipal bonds in New York City-

Additional Advanced Refundine: ............................................. $200 million

Allowing municipal

issuers New York State — including the Pon Authority of New in

York and New Jersey, New York City Hospitals, and the Metropolitan Transportation Authority — to raise much needed capital by permitting one additional advanced refunding of municipal and 5O1 (c)3 bonds over the next three years. This refunding authority would allow municipal issuers in New York to take advantage of current low interest rates to lower their debt service payments, which are increasingly burdensome as a result of revenue losses resulting directly from terrorist attacks.

Residential Tnx Credit for Zone Taxoavers: ....._ $800 million

$3,000 annual Federal tax credit for each taxpayer who maintains a primary residence within the Zone (Manhattan South of Canal Street) for years 2002 and 2003.

Total Cost: $5 billion

NYC-WTC 000136729