I
107TH CONGRESS
1ST SESSION
H. R. 3402
To provide tax incentives for the recovery of businesses in the City of New
York which were impacted by the September 11, 2001, terrorist attacks.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 4, 2001
Mr. RANGEL (for himself, Mr. NADLER, Mrs. MALONEY of New York, Mr.
SERRANO, Mr. TOWNS, Mr. HINCHEY, Mrs. MCCARTHY of New York,
and Mr. MCNULTY) introduced the following bill; which was referred to
the Committee on Ways and Means
A BILL
To provide tax incentives for the recovery of businesses in
the City of New York which were impacted by the Sep-
tember 11, 2001, terrorist attacks.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘New York Recovery
From Terrorism Act of 2001’’.
SEC. 2. EXPANSION OF WORK OPPORTUNITY TAX CREDIT
TARGETED CATEGORIES TO INCLUDE CER-
TAIN EMPLOYEES IN NEW YORK CITY.
(a) IN GENERAL.—For purposes of section 51 of the
Internal Revenue Code of 1986 (relating to work oppor-
tunity credit), a New York Recovery Zone business em-
ployee shall be treated as a member of a targeted group.
(b) NEW YORK RECOVERY ZONE BUSINESS EM-
PLOYEE.—For purposes of this section—
(1) IN GENERAL.—The term ‘‘New York Recov-
ery Zone business employee’’ means, with respect to
the period beginning after September 10, 2001, and
ending before January 1, 2005, any employee of a
New York Recovery Zone business if—
(A) substantially all the services performed
during such period by such employee for such
business are performed in a trade or business
of such business located in an area described in
paragraph (2), and
(B) with respect to any employee of such
business described in paragraph (2)(B), such
employee is certified by the New York State
Department of Labor as not exceeding, when
added to all other employees previously certified
with respect to such period as New York Recov-
ery Zone business employees with respect to
such business, the number of employees of such
business on September 11, 2001, in the New
York Recovery Zone.
(2) NEW YORK RECOVERY ZONE BUSINESS.—
The term ‘‘New York Recovery Zone business’’
means any business establishment which is—
(A) located in the New York Recovery
Zone, or
(B) located in the City of New York, New
York, outside the New York Recovery Zone, as
the result of the destruction or damage of such
establishment by the September 11, 2001, ter-
rorist attack.
(3) NEW
YORK
RECOVERY
ZONE.—The term
‘‘New York Recovery Zone’’ means the area located
on or south of Canal Street, East Broadway (east of
its intersection with Canal Street), or Grand Street
(east of its intersection with East Broadway) in the
Borough of Manhattan in the City of New York,
New York.
(4) 
SPECIAL
RULES
FOR
DETERMINING
AMOUNT OF CREDIT.—For purposes of applying sub-
part E of part IV of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 to wages paid or
incurred to any New York Recovery Zone business
employee—
(A) section 51(a) of such Code shall be ap-
plied by substituting ‘‘qualified wages’’ for
‘‘qualified first-year wages’’,
(B) section 51(d)(12)(A)(i) of such Code
shall be applied to the certification of individ-
uals employed by a New York Recovery Zone
business before April 1, 2002, by substituting
‘‘on or before May 1, 2002’’ for ‘‘on or before
the day on which such individual begins work
for the employer’’,
(C) subsections (c)(4) and (i)(2) of section
51 of such Code shall not apply, and
(D) in determining qualified wages, the fol-
lowing shall apply in lieu of section 51(b) of
such Code:
(i) QUALIFIED
WAGES.—The term
‘‘qualified wages’’ means the wages paid or
incurred by the employer for work per-
formed during the period beginning on
September 11, 2001, and ending on De-
cember 31, 2004, to individuals who are
New York Recovery Zone business employ-
ees of such employer.
(ii) ONLY FIRST $6,000 OF WAGES PER
TAXABLE YEAR TAKEN INTO ACCOUNT.—
The amount of the qualified wages which
may be taken into account with respect to
any individual shall not exceed $6,000 per
taxable year of the employer.
(c) CREDIT ALLOWED AGAINST REGULAR AND MIN-
IMUM TAX.—
(1) IN GENERAL.—Subsection (c) of section 38
of the Internal Revenue Code of 1986 (relating to
limitation based on amount of tax) is amended by
redesignating paragraph (3) as paragraph (4) and
by inserting after paragraph (2) the following new
paragraph:
‘‘(3) SPECIAL RULES FOR NEW YORK RECOVERY
ZONE BUSINESS EMPLOYEE CREDIT.—
‘‘(A) IN
GENERAL.—In the case of the
New York Recovery Zone business employee
credit—
‘‘(i) this section and section 39 shall
be applied separately with respect to such
credit, and
‘‘(ii) in applying paragraph (1) to
such credit—
‘‘(I) the tentative minimum tax
shall be treated as being zero, and
‘‘(II) the limitation under para-
graph (1) (as modified by subclause
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the
taxable year (other than the New
York Recovery Zone business em-
ployee credit).
‘‘(B) NEW YORK RECOVERY ZONE BUSI-
NESS EMPLOYEE CREDIT.—For purposes of this
subsection, the term ‘New York Recovery Zone
business employee credit’ means the portion of
work opportunity credit under section 51 deter-
mined under section 2 of the New York Recov-
ery From Terrorism Act of 2001.’’.
(2) CONFORMING AMENDMENT.—Subclause (II)
of section 38(c)(2)(A)(ii) of such Code is amended
by inserting ‘‘or the New York Recovery Zone busi-
ness employee credit’’ after ‘‘employment credit’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years end-
ing after September 11, 2001.
SEC. 3. TAX-EXEMPT PRIVATE ACTIVITY BONDS FOR RE-
BUILDING PORTION OF NEW YORK CITY DAM-
AGED IN THE SEPTEMBER 11, 2001, TER-
RORIST ATTACK.
(a) TREATMENT AS QUALIFIED BONDS.—For pur-
poses of the Internal Revenue Code of 1986, any qualified
NYC recovery bond shall be treated as an exempt facility
bond under section 141(e) of such Code.
(b) QUALIFIED NYC RECOVERY BOND.—For pur-
poses of this section, the term ‘‘qualified NYC recovery
bond’’ means any bond which—
(1) is issued by the State of New York or any
political subdivision thereof (or any agency, instru-
mentality or constituted authority on behalf thereof),
and
(2) meets the requirements of subsections (c)
through (f).
(c) DESIGNATION REQUIREMENTS.—A bond meets
the requirements of this subsection if it is issued as part
of an issue designated as a qualified NYC recovery bond
by the Mayor of the City of New York, New York, or an
individual specifically appointed to make such designation.
(d) ISSUANCE AND VOLUME REQUIREMENTS.—
(1) IN GENERAL.—Except as provided in para-
graph (3), a bond issued as part of an issue meets
the requirements of this subsection if such bond is
issued during 2002 (or during the period elected
under paragraph (2)) and the aggregate face
amount of the bonds issued pursuant to such issue,
when added to the aggregate face amount of quali-
fied NYC recovery bonds previously issued, does not
exceed $12,500,000,000.
(2) ELECTIVE
CARRYFORWARD
OF
UNUSED
LIMITATION.—If the volume cap under paragraph
(1) exceeds the aggregate amount of qualified NYC
recovery bonds issued during 2002, the issuing au-
thority under subsection (b) may elect to carry for-
ward such excess volume cap for an additional 3-
year period under rules similar to the rules of sec-
tion 146(f) of the Internal Revenue Code of 1986
(other than paragraph (2) thereof).
(3) CERTAIN
CURRENT
REFUNDINGS
NOT
COUNTED.—For purposes of paragraph (1), there
shall not be taken into account any current refund-
ing bond the proceeds of which are used to refund
any bond described in paragraph (1) to the extent
the face amount of such current refunding bond
does not exceed the outstanding face amount of the
refunded bond.
(e) QUALIFIED PROJECT REQUIREMENTS.—
(1) IN GENERAL.—A bond meets the require-
ments of this subsection if it is issued as part of an
issue at least 95 percent of the net proceeds of
which are to be used for qualified project costs.
(2) QUALIFIED PROJECT COSTS.—For purposes
of this subsection—
(A) IN
GENERAL.—The term ‘‘qualified
project costs’’ means—
(i) with respect to a qualified project
described in paragraph (3)(A)(i), the costs
of acquisition, construction, reconstruction,
and renovation of commercial real property
and 
residential 
rental 
real 
property,
including—
(I) buildings and their structural
components,
(II) fixed tenant improvements,
and
(III) public utility property, and
(ii) with respect to a qualified project
described in paragraph (3)(A)(ii), the costs
of acquisition, construction, reconstruction,
and renovation of commercial real prop-
erty, including—
(I) buildings and their structural
components, and
(II) fixed tenant improvements.
(B) LIMITATIONS.—
(i) RESIDENTIAL RENTAL REAL PROP-
ERTY.—Such term shall not include costs
with respect to residential rental real prop-
erty to the extent such costs for all such
property exceed 20 percent of the aggre-
gate face amount of the bonds issued
under this section.
(ii) RETAIL SALES PROPERTY.—Such
term shall not include costs with respect to
property used for retail sales of tangible
property and functionally related and sub-
ordinate property to the extent such costs
for all such property exceeds 10 percent of
the aggregate face amount of the bonds
issued under this section.
(iii) MOVABLE FIXTURES AND EQUIP-
MENT.—Such term shall not include costs
with respect to movable fixtures and equip-
ment.
(3) QUALIFIED
PROJECTS.—For purposes of
this subsection—
(A) IN
GENERAL.—The term ‘‘qualified
project’’ means any project—
(i) located within the New York Re-
covery Zone, or
(ii) located within the City of New
York, New York, but outside of the New
York Recovery Zone, but only if—
(I) such project consists of at
least 100,000 square feet of usable of-
fice or other commercial space located
in a single building or multiple adja-
cent buildings, and
(II) the aggregate face amount of
the bonds issued to finance such
project, when added to the aggregate
face amount of all bonds issued to fi-
nance all other projects described in
this 
clause, 
does 
not 
exceed
$7,000,000,000.
(B) NEW
YORK
RECOVERY
ZONE.—The
term ‘‘New York Recovery Zone’’ means the
area located on or south of Canal Street, East
Broadway (east of its intersection with Canal
Street), or Grand Street (east of its intersection
with East Broadway) in the Borough of Man-
hattan in the City of New York, New York.
(f) GENERAL REQUIREMENTS.—A bond meets the re-
quirements of this subsection if it is issued as part of an
issue which meets the requirements of part IV of sub-
chapter B of chapter 1 of the Internal Revenue Code of
1986 applicable to an exempt facility bond, except as fol-
lows:
(1) Sections 142(d) and 150(b)(2) (relating to
qualified residential rental project), and section 146
(relating to volume cap) of such Code shall not apply
to bonds issued under this section.
(2) The application of section 147(c) of such
Code (relating to limitation on use for land acquisi-
tion) shall be determined by reference to the aggre-
gate authorized face amount of all bonds issued
under this section rather than the net proceeds of
each issue.
(3) Section 147(d) of such Code (relating to ac-
quisition of existing property not permitted) shall be
applied by substituting ‘‘50 percent’’ for ‘‘15 per-
cent’’ each place it appears.
(4) Section 148(f)(4)(C) of such Code (relating
to exception from rebate for certain proceeds to be
used to finance construction expenditures) shall
apply to construction proceeds of bonds issued under
this section.
(5) Rules similar to the rules of section
143(a)(2)(A)(iv) of such Code (relating to use of
loan repayments) shall apply to bonds issued under
this section.
(g) BOND INTEREST NOT AN AMT PREFERENCE
ITEM.—For purposes of section 57(a)(5) of the Internal
Revenue Code of 1986, a qualified NYC recovery bond
shall not be treated as a specified private activity bond.
(h) SEPARATE ISSUE TREATMENT OF PORTIONS OF
AN ISSUE.—This section shall not apply to the portion of
the proceeds of an issue which (if issued as a separate
issue) would be treated as a qualified bond or as a bond
that is not a private activity bond (determined without re-
gard to subsection (a)), if the issuer elects to so treat such
portion.
(i) NET PROCEEDS.—For purposes of this section,
the term ‘‘net proceeds’’ has the meaning given such term
by section 150(a)(3) of the Internal Revenue Code of
1986.
(j) INTEREST ON DEBT USED TO PURCHASE OR
CARRY QUALIFIED NYC RECOVERY BONDS.—
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section
265(b)(3)(A) of such Act (relating to exception for
certain tax-exempt obligations) of such Code is
amended by adding at the end the following new
flush sentence:
‘‘Such term includes a tax-exempt obliga-
tion issued pursuant to section 3 of the
New York Recovery From Terrorism Act
of 2001.’’
(2) REFUNDINGS.—Subparagraph (D) of sec-
tion 265(b)(3) of such Code is by adding at the end
the following new clause:
‘‘(iv) REFUNDINGS OF CERTAIN OBLI-
GATIONS.—In the case of a refunding (or
a series of refundings) of a qualified tax-
exempt obligation that is an obligation
issued pursuant to section 3 of the New
York Recovery From Terrorism Act of
2001, the refunding obligation shall be
treated as a qualified tax-exempt obligation
if the refunding obligation meets the re-
quirements of such section.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years end-
ing on or after the date of the enactment of this Act.
SEC. 4. ADDITIONAL ADVANCE REFUNDING PERMITTED OF
CERTAIN BONDS.
Paragraph (3) of section 149(d) of the Internal Rev-
enue Code of 1986 shall not apply to the first advance
refunding after the date of the enactment of this Act of
any issue if—
(1) the original bond was issued by—
(A) the City of New York,
(B) the Port Authority of New York and
New Jersey,
(C) the Metropolitan Transit Authority of
the City of New York,
(D) the New York City Municipal Water
Authority, or
(E) any hospital which is located in the
City of New York, described in section
501(c)(3) of such Code, and exempt from tax
under section 501(a) of such Code,
(2) no bond (issued as part of the refunding
issue) is issued to advance refund a private activity
bond (other than a qualified hospital bond which is
a qualified 501(c)(3) bond, as such terms are de-
fined in section 145 of such Code), and
(3) other than the bonds being refunded by
such refunding issue, the original bonds and all prior
refundings of such bonds have been redeemed as of
the date of the enactment of this Act.
The preceding sentence shall apply only if the refunding
bonds meet the requirements of clauses (iii), (iv), and (v)
of section 149(d)(3)(A) of such Code.
SEC. 5. GAIN OR LOSS FROM PROPERTY DAMAGED OR DE-
STROYED IN NEW YORK RECOVERY ZONE.
(a) GENERAL RULE.—For purposes of the Internal
Revenue Code of 1986, if a taxpayer elects the application
of this section with respect to any eligible property, then
any gain or loss on the disposition of the property shall
be determined without regard to any compensation (by in-
surance or otherwise) received by the taxpayer for dam-
ages sustained to the property as a result of the terrorist
attacks occurring on September 11, 2001. Such election
shall be made at such time and in such manner as the
Secretary of the Treasury may prescribe, and, once made,
is irrevocable.
(b) LIMITATION BASED ON PURCHASE OF REPLACE-
MENT PROPERTY.—
(1) IN GENERAL.—Subsection (a) shall apply to
compensation received with respect to eligible prop-
erty only to the extent of the cost of any qualified
replacement property purchased by the taxpayer.
(2) ALLOCATION.—If the aggregate compensa-
tion received by a taxpayer with respect to all eligi-
ble property exceeds the aggregate cost of all quali-
fied replacement property purchased by the tax-
payer, such cost shall be allocated to such eligible
property in accordance with rules prescribed by the
Secretary.
(3) 
SPECIAL
RULE
FOR
CONSOLIDATED
GROUPS.—For purposes of paragraph (1), an affili-
ated group filing a consolidated return may elect to
treat any qualified replacement property purchased
by a member of the group as purchased by another
member of the group.
(c) ELIGIBLE PROPERTY.—For purposes of this sec-
tion, the term ‘‘eligible property’’ means any tangible
property—
(1) which is section 1245 property (as defined
in section 1245(a)(3) of the Internal Revenue Code
of 1986) or qualified leasehold improvement prop-
erty (as defined in section 168(k)(3) of such Code),
(2) substantially all of the use of which as of
September 11, 2001, was in a business establish-
ment of the taxpayer located in the New York Re-
covery Zone, and
(3) which was damaged or destroyed in the ter-
rorist attacks of September 11, 2001.
(d) QUALIFIED
REPLACEMENT
PROPERTY.—For
purposes of this section—
(1) IN GENERAL.—The term ‘‘qualified replace-
ment property’’ means tangible property—
(A) which is described in subsection (c)(1),
(B) which is purchased by the taxpayer on
or after September 11, 2001, and placed in
service in the City of New York, New York, be-
fore January 1, 2007,
(C) the original use of which in such city
begins with the taxpayer, and
(D) substantially all of the use of which is
reasonably expected to be in connection with a
business establishment of the taxpayer located
in such city.
(2) RECAPTURE.—The Secretary shall, by regu-
lations, provide for the recapture of any Federal tax
benefit provided by this section in cases where a tax-
payer ceases to use property as qualified replace-
ment property and such recapture is necessary to
prevent the avoidance of the purposes of this section.
(e) COORDINATION WITH OTHER PROVISIONS
OF
CODE.—For purposes of the Internal Revenue Code of
1986—
(1) SPECIAL RULE FOR TREATMENT OF UNREC-
OGNIZED
GAIN
IN
ELIGIBLE
PROPERTY.—Sections
1245 and 1250 of such Code shall not apply to any
gain on the disposition of eligible property not recog-
nized by reason of this section.
(2) LOSS ELECTION NOT TO APPLY TO ELIGI-
BLE PROPERTY.—If a taxpayer elects the application
of this section with respect to any eligible property,
the taxpayer may not make an election under section
165(i) of such Code with respect to any loss attrib-
utable to the property.
(3) BASIS
ADJUSTMENTS
OF
QUALIFIED
RE-
PLACEMENT PROPERTY.—
(A) IN GENERAL.—The basis of any quali-
fied replacement property shall be reduced by
the amount of any compensation disregarded by
reason of subsection (a).
(B) SPECIAL
RULES
FOR
RECAPTURE.—
For purposes of sections 1245 and 1250 of
such Code, any reduction under subparagraph
(A) shall be treated as a deduction allowed for
depreciation, except that for purposes of section
1250(b) of such Code, the determination of
what would have been the depreciation adjust-
ments under the straight line method shall be
made as if there had been no reduction under
subparagraph (A).
(4) SPECIAL
RULES
FOR
APPLYING
SECTION
1033.—For purposes of applying section 1033 of
such Code to converted property which is eligible
property with respect to which an election under
subsection (a) has been made—
(A) the amount realized from the eligible
property shall not include any compensation re-
ceived by the taxpayer which is disregarded by
reason of subsection (a), and
(B) any qualified replacement property
shall be disregarded in determining whether
property was acquired for the purposes of re-
placing the converted property.
(f) OTHER DEFINITIONS AND RULES.—For purposes
of this section—
(1) NEW
YORK
RECOVERY
ZONE.—The term
‘‘New York Recovery Zone’’ means the area located
on or south of Canal Street, East Broadway (east of
its intersection with Canal Street), or Grand Street
(east of its intersection with East Broadway) in the
Borough of Manhattan in the City of New York,
New York.
(2) TIME FOR ASSESSMENT.—Rules similar to
the rules of subparagraphs (C) and (D) of section
1033(a)(2) of such Code shall apply for purposes of
this section.
(3) RELATED
PARTY
LIMITATION.—Section
1033(i) of such Code shall apply for purposes of this
section.
SEC. 6. CREDIT FOR INDIVIDUALS RESIDING IN LOWER
MANHATTAN.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25B the following:
‘‘SEC. 25C. CREDIT FOR RESIDENTS OF LOWER MANHAT-
TAN.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who is a qualified resident with respect to the tax-
able year, there shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an
amount equal to $5,000.
‘‘(b) LIMITATIONS.—
‘‘(1) LIMITATION BASED ON ADJUSTED GROSS
INCOME.—
‘‘(A) IN
GENERAL.—The amount of the
credit allowed under subsection (a) shall be re-
duced (but not below zero) by $50 for each
$1,000 (or fraction thereof) by which the tax-
payer’s modified adjusted gross income exceeds
$150,000.
‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of subparagraph (A), the
term ‘modified adjusted gross income’ means
adjusted gross income determined without re-
gard to sections 911, 931, or 933.
‘‘(2) MAXIMUM CREDIT PER RESIDENCE AND
PER QUALIFIED RESIDENT.—
‘‘(A) PER
RESIDENCE.—As provided by
the Secretary, the credit under subsection (a)
shall not be allowed with respect to more than
1 individual with respect to a principal resi-
dence for the taxable year.
‘‘(B) PER QUALIFIED RESIDENT.—The ag-
gregate credit allowed under subsection (a) with
respect to any individual for all taxable years
shall not exceed $5,000 and no such credit shall
be allowed for a taxable year if the credit was
so allowed for a preceding taxable year.
‘‘(c) QUALIFIED RESIDENT.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified resi-
dent’ means an individual who—
‘‘(A) maintains a principal residence—
‘‘(i) which is located on or south of
Canal Street, East Broadway (east of its
intersection with Canal Street), or Grand
Street (east of its intersection with East
Broadway) in the Borough of Manhattan
in the City of New York, New York, and
‘‘(ii) for at least 6 consecutive months
during calendar year 2002 or 2003,
‘‘(B) makes more than half of the aggre-
gate rental, mortgage, or any similar payment
with respect to the residence during the period
described in subparagraph (A)(ii), and
‘‘(C) is certified under paragraph (5).
‘‘(2) MULTIPLE RESIDENTS AGREEMENT.—For
purposes of paragraph (1)(B), an individual shall be
treated as making more than half of the aggregate
rental, mortgage, or similar payments for the period
with respect to the residence if—
‘‘(A) no one person with respect to the pe-
riod makes over half of such payments,
‘‘(B) over half of such aggregate payments
are made by persons each of whom, but for the
fact that such person did not make over half of
such payments, would have been a qualified
resident with respect to the residence,
‘‘(C) the taxpayer contributed over 10 per-
cent of such payments, and
‘‘(D) each person described in subpara-
graph (B) (other than the taxpayer) who con-
tributed over 10 percent of such payments files
a written declaration (in such manner and form
as the Secretary may prescribe) that such per-
son will not claim a credit with respect to such
residence.
‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the same meaning as when used
in section 121, except that no ownership require-
ment shall be imposed.
‘‘(4) YEAR CREDIT ALLOWED.—The credit al-
lowed under subsection (a) shall be allowed for the
taxable year in which the period described in para-
graph (1)(A)(ii) ends.
‘‘(5) CERTIFICATION.—For purposes of para-
graph (1)(C), the appropriate State or local author-
ity shall—
‘‘(A) certify whether an individual, request-
ing such certification, meets the requirements
of subparagraphs (A) and (B) of paragraph (1),
‘‘(B) issue a certification to such individual
meeting such requirements which—
‘‘(i) contains a written statement
showing the name and address of the per-
son making such certification and the
phone number of the information contact
for such person, and
‘‘(ii) is furnished on or before March
1 of the year following the calendar year in
which the credit under subsection (a) is al-
lowed, and
‘‘(C) not certify more than 32,000 in-
dividuals in any calendar year as being
qualified residents for purposes of this sec-
tion.
‘‘(d) VERIFICATION.—No credit shall be allowed
under subsection (a) to a taxpayer unless the taxpayer in-
cludes, on the return of tax for the taxable year—
‘‘(1) proof of the certification received under
subsection (c)(5), and
‘‘(2) such other information as the Secretary
determines necessary.
‘‘(e) INFORMATION REPORTING.—
‘‘(1) IN GENERAL.—Any State or local author-
ity which issues the certification required under sub-
section (c)(5) shall make the return described in
paragraph (2) (at such time as the Secretary may
prescribe) with respect to each individual to whom
such certification is provided.
‘‘(2) FORM AND MANNER OF RETURNS.—A re-
turn is described in this subsection if such return—
‘‘(A) is in such form as the Secretary may
prescribe, and
‘‘(B) contains—
‘‘(i) the name, address, and TIN of
the individual to whom such certification is
provided, and
‘‘(ii) such other information as the
Secretary may reasonably prescribe.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter
1 of such Code is amended by inserting after the item
relating to section 25B the following:
‘‘Sec. 25C. Credit for residents of lower Manhattan.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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