WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

WORLD TRADE CENTER RECOVERY ZONE The goal of the new World Trade Center Recovery Zone or "Liberty Zone" is to create self-sustaining, long-term economic development in New York with special emphasis on the areas damaged or destroyed during the events of September 11, 2001. The Liberty Zone would establish special tax incentives for qualified businesses, designed to stimulate private investment and return jobs to the community. The Liberty Zone would also create financial incentives to encourage businesses that are located within it to hire individuals who live and work nearby, as well as encourage investment in buildings, equipment and infrastructure within the zone through tax-exempt bond financing and favorable depreciation rules. The program would also provide benefits to individuals who reside in the area and have uninsured losses and costly repair and replacement expenses. The plan provides tax incentives for individuals who choose to live or relocate to the zone. The Liberty Zone's goal is to provide lower Manhattan with the necessary tools to revitalize and return to economic self-sufficiency.

The proposals described in this section are among the options that could achieve our goals, and are designed to rebuild New York and to assure that the New York economy recovers from the events of September 11. While the national economy has suffered from the World Trade Center disaster, the economic losses in New York have been much more severe in terms of billions of dollars of damaged or destroyed private capital and public infrastructure; thousands of dislocated workers; millions of dollars of lost sales due to business interruption; and significant disruption to the financial services industry which is the capital of the global securities and banking markets. To that end, our focus is both on stimulating the entire New York economy and revitalizing lower Manhattan.

To assist businesses that were displaced or otherwise damaged by the World Trade Center disaster, the State has already submitted a $1 billion proposal to the White House. This proposal would address the immediate financial needs of individual companies and stimulate broader economic activities. For example, funding would be available for: interim financing for businesses awaiting Federal Small Business Administration loans; uninsured damages as a result of the disaster; and relocation assistance for displaced businesses.

Under the proposals contained herein, tax relief and other incentives would be available to businesses and residents that were temporarily or permanently displaced after the disaster, those that expand within the Liberty Zone, and those new to the area. The incentives would include: tax credits against state and local taxes such as the sales tax; tax benefits for employees willing to work or live in the Liberty Zone; increased depreciation deductions for eligible businesses who build in New York; tax credits for investment in buildings, machinery and equipment replacement; and tax-exempt bond financing.

J:\PR\WTC\WTC4.doc 2

NYC-WTC 000136766