[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1411 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 1411
To amend the Internal Revenue Code of 1986 to allow qualified
technological equipment and computer software to be expensed, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 4, 2001
Mr. Weller (for himself, Mr. Neal of Massachusetts, Mrs. Kelly, Mr.
Tauzin, Mr. Goodlatte, Mr. Cox, Mr. Cunningham, Mr. Issa, Mrs. Wilson,
and Mr. Ehrlich) introduced the following bill; which was referred to
the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow qualified
technological equipment and computer software to be expensed, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Expensing Technology Reform Act of
2001''.
SEC. 2. EXPENSING OF QUALIFIED TECHNOLOGICAL EQUIPMENT AND COMPUTER
SOFTWARE.
(a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
179A the following new section:
``SEC. 179B. DEDUCTION FOR QUALIFIED TECHNOLOGICAL EQUIPMENT AND
COMPUTER SOFTWARE.
``(a) Treatment as Expenses.--A taxpayer may elect to treat the
cost of any qualified technological property as an expense which is not
chargeable to capital account. Any cost so treated shall be allowed as
a deduction for the taxable year in which the qualified technological
property is placed in service.
``(b) Qualified Technological Property.--For purposes of this
section--
``(1) In general.--The term `qualified technological
property' means--
``(A) property to which section 168 applies which
is--
``(i) qualified technological equipment (as
defined in section 168(i)(2)),
``(ii) any wireless telecommunications
equipment,
``(iii) any advanced services equipment, or
``(iv) any network or network system
equipment, and
``(B) computer software (as defined in section
197(e)(3)(B)) to which section 167 applies.
``(2) Wireless telecommunications equipment.--The term
`wireless telecommunications equipment' means all equipment
used in the transmission, reception, coordination, or switching
of wireless telecommunications service. For this purpose,
`wireless telecommunications service' includes any commercial
mobile radio service as defined in title 47 of the Code of
Federal Regulations.
``(3) Advanced services equipment.--The term `advanced
services equipment' means equipment, excluding cabling, used in
the provision of Internet or electronic communications access
services or support, or which supports access to electronic
media and data and associated communications support, provided
that such services or support constitute or directly contribute
to the provision of advanced telecommunications capability as
that term is defined in section 706(c)(1) of the
Telecommunications Act of 1996.
``(4) Network or network system equipment.--The term
`network or network system equipment' means any information
technology equipment, including computer servers, hubs,
bridges, switches and routers, which are interconnected so as
to enable computers and peripherals to communicate with each
other either individually or as a single unit.
``(c) Certain Rules To Apply.--Rules similar to the rules of
paragraphs (4), (5), and (6) of section 179A shall apply for purposes
of this section.''.
(b) Inclusion of Copiers, Duplicating Equipment, and Other
Equipment.--Clause (iv) of section 168(i)(2)(B) of such Code is
amended--
(1) by striking ``copiers, duplicating equipment,'' in
subclause (II),
(2) by adding ``and'' at the end of subclause (I),
(3) by striking ``, and'' at the end of subclause (II) and
inserting a period, and
(4) by striking subclause (III).
(c) Conforming Amendments.--
(1) Paragraph (1) of section 263(a) of such Code is amended
by striking ``or'' at the end of subparagraph (G), by striking
the period at the end of subparagraph (H) and inserting ``;
or'', and by adding at the end the following new subparagraph:
``(I) expenditures for which a deduction is allowed
under section 179B.''.
(2) Subparagraph (B) of section 312(k)(3) of such Code is
amended by striking ``or 179A'' each place it appears and
inserting ``, 179A, or 179B''.
(3) Subparagraph (C) of section 1245(a)(2) of such Code is
amended by inserting ``179B,'' after ``179A,''.
(4) The table of sections for part VI of subchapter B of
chapter 1 of such Code is amended by inserting after the item
relating to section 179A the following new item:
``Sec. 179B. Deduction for qualified
technological equipment and
computer software.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR E569)
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