President Barack Obama proposed creating $2 billion of tax credits to spur transportation projects for New York City.
The administration, in its $3.7 trillion budget proposed today, said it is seeking $200 million a year in tax credits through 2021 for transportation projects tied to the New York Liberty Zone, the area of lower Manhattan affected by the Sept. 11, 2001, terrorist attacks.
The proposal is a response to New York officials who concluded that transit projects would foster development better than some tax incentives meant to encourage building, the administration said in its budget plan. Previous legislation allowed New York state and city to sell tax-exempt securities to finance work in the area.
The tax credits would be divided between the state and city and could be deducted from payments the governments owe to the federal government. They could be used for transportation projects within, or into, the affected area of Manhattan, according to the budget.
The same language was in the president’s budget last year and “we hope it can become reality this year,” said Marc LaVorgna, a spokesman to the mayor.