On March 9, 2002, President Bush signed into law the long-awaited economic stimulus tax package now known as the Job Creation and Worker Assistance Act of 2002. Although this law provides additional special tax breaks for post 9-11 New York City reconstruction and extended unemployment benefits for its residents, the new law also offers significant tax breaks for businesses and individuals, both inside and outside New York City.

We recommend you consult with us as soon as possible as these provisions may result in an immediate tax savings on your 2001 return. If you have already filed your return, an amended return can be filed so you can benefit from these tax breaks.

We will begin with a summary of the tax breaks that may affect all businesses and end with a review of the tax breaks specifically for New York City.

      I.    Temporary 30% depreciation "bonus"

      II.   Changes in expensing limits for business automobiles

      III.  Net operating losses carryback period

      IV.  Extensions to expiring tax credits and deductions

      V.   New York City "Liberty Zone"