Increases the state cap to $12.5 billion for tax-exempt private purpose bonds for projects in New York City, earmarking the first $7 billion for the NYRZ.
Creates a limited exception, allowing certain issuers of tax-exempt debt to advance refund existing debt. Includes the City of New York, the Port Authority of New York and New Jersey, the Metropolitan Transit Authority of the City of New York, the New York City Municipal Water Authority, and nonprofit New York City hospitals within such exception.
Permits taxpayers who lost business property in the NYRZ as a result of the September 11, 2001, terrorist attacks to expense the remaining basis in such property, carried over to replacement property as the result of insurance payments where the replacement property is placed in service in New York City before 2007.
Allows a one time $5,000 nonrefundable tax credit for residents in the NYRZ, subject to certain restrictions including gross income and length of subsequent residence.