On March 9, 2002, President George W. Bush signed the Job Creation and Worker Assistance Act of 2002 (the Act). In addition to providing new tax benefits for capital investment applicable throughout the nation, the Act contains significant incentives for investment in the area of New York City damaged in the terrorist attacks of Sept. 11, 2001, defined as the “New York Liberty Zone” (NYLZ), the area in Manhattan located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), and Grand Street (east of its intersection with East Broadway).
The rules governing qualification for the various incentives are very complicated, and the results of very similar investments may be different depending on where the property is located, when it is placed in service, and other matters. Some of the benefits can be claimed on tax returns for 2001, which are currently under preparation, or can even be used to claim refunds for prior years. This article provides general information regarding qualification for the major Federal tax benefits now available.
