116 STAT. 34 PUBLIC LAW 107-147—MAR. 9, 2002 The Secretary may require any trade or business to have the number determined under subclause (I) verified by the New York State Department of Labor. "(C) NEW YORK LIBERTY ZONE BUSINESS. — "(i) IN GENERAL.— The term 'New York Liberty Zone business' means any trade or business which is— "(I) located in the New York Liberty Zone, or "(II) located in the City of New York, New York, outside the New York Liberty Zone, as a result of the physical destruction or damage of such place of business by the September 11, 2001, terrorist attack. " (ii) CREDIT NOT ALLOWED FOR LARGE BUSINESSES.— The term 'New York Liberty Zone business' shall not include any trade or business for any taxable year if such trade or business employed an average of more than 200 employees on business days during the taxable year. "(D) SPECIAL RULES FOR DETERMINING AMOUNT OF CREDIT.—For purposes of applying subpart F of part IV of subchapter B of this chapter to wages paid or incurred to any New York Liberty Zone business employee— "(i) section 51(a) shall be applied by substituting 'qualified wages' for 'qualified first-year wages', "(ii) the rules of section 52 shall apply for purposes of determining the number of employees under subparagraph (B), "(iii) subsections (c)(4) and (i)(2) of section 51 shall not apply, and "(iv) in determining qualified wages, the following shall apply in lieu of section 51(b): "(I) QUALIFIED WAGES.— The term 'qualified wages' means wages paid or incurred by the employer to individuals who are New York Liberty Zone business employees of such employer for work performed during calendar year 2002 or 2003. "(II) ONLY FIRST $6,OOO OF WAGES PER CAL- ENDAR 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 calendar year. "(b) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED AFTER SEPTEMBER 10, 2001. — "(1) ADDITIONAL ALLOWANCE. — In the case of any qualified New York Liberty Zone property— "(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 30 percent of the adjusted basis of such property, and "(B) the adjusted basis of the qualified New York Liberty Zone property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.
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