New York Liberty Zone Tax Relief Act of 2001

New York Liberty Zone Tax Relief Act of 2001 - Amends the Internal Revenue Code to provide specified temporary tax benefits for the New York Liberty Zone (NYLZ) (September 11, 2001-damaged area). Allows through 2006: (1) additional depreciation (30 percent) as specified for qualified property acquired after September 10, 2001; and (2) a five-year recovery period for depreciation of certain qualified leasehold improvement property (interior of nonresidential real property), as specified.

Increases the aggregate dollar limitation for the expensing of certain depreciable business assets (section 179), as specified.

Treats qualified New York Liberty Bonds as tax-exempt facility bonds, subject to a maximum aggregate amount, as specified.

Extends the replacement period for nonrecognition of gain from two to five years for certain property involuntarily converted as a result of the terrorist attacks in the NYLZ.