WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

• Small issue manufacturing; • Single family housing; • Multi-family residential rental; • Water, sewer, solid and hazardous waste disposal facilities; and • Electric, gas, heating and cooling.

The State supports the National Governor's Association proposal to lift all states' private activity bond volume caps as a way to stimulate the national economy. In addition, New York proposes expanding the eligible purposes for which private activity bonds may be issued. If the NGA proposal is not fully implemented, then, at a minimum, the following actions should be taken:

Double the New York State private activity volume bond cap to $2.8 billion.

Create a new eligible private activity bond purpose for telecommunications infrastructure.

➢ Deductibility of State and Local Sales Taxes

Proposal: State and local sales taxes would be deductible from Federal income and corporate taxes when incurred in the acquisition of certain property used in a trade or business. This special tax treatment would be limited to rehabilitation or construction related to rebuilding the 25 million square feet of destroyed or severely damaged office space. However, waivers could be granted to apply this benefit in other areas of New York City targeted for redevelopment. These taxes are currently capitalized into the basis of the acquired property.

Reasons for Change: This proposal would lower the effective cost of construction for affected businesses, making the rehabilitation of the impacted area more attractive and stimulating investment in buildings throughout New York City.

> Accelerated Depreciation, Expanded Business Expense Deduction and Shortened Amortization for Business Expenses

Accelerated Depreciation

Change the current depreciation treatment for new structures (nonresidential real property) from 39 to 20 years. [IRC§ 168(c).]

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NYC-WTC 000136768