Goldman Tower’s Tax-Free Loan Makes Liberty Bonds Tough Sell
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Jan. 11 (Bloomberg) -- A tax-free bond program thatprovided below-market financing to build Goldman Sachs GroupInc.’s headquarters is expiring while New York developers saythe city’s commercial real estate market still needs support.
Congress created the Liberty Bond program in March 2002with $8 billion in tax-exempt funds to rebuild lower Manhattanafter the Sept. 11 terrorist attacks. The allocation ran outlast month and the tax exemption ended on Dec. 31, along withdozens of other breaks for manufacturers, energy companies andtransit commuters. The Liberty Bonds that were already issuedretain their tax exemption.