To amend the Internal Revenue Code of 1986 to exclude from gross income computers and Internet access provided by an employer for the personal use of employees.

Amends the Internal Revenue Code to include in the definition of "educational assistance" provided to an employee (and thus exclude from the gross income of an employee) the provision, by an employer, of computer equipment or Internet access.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1835 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1835

To amend the Internal Revenue Code of 1986 to exclude from gross income 
computers and Internet access provided by an employer for the personal 
                           use of employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2001

Mr. Weller (for himself, Mr. Lewis of Georgia, Mr. Matsui, Mr. Collins, 
  Mr. McDermott, Mr. Tom Davis of Virginia, Mr. Isakson, Mr. Moran of 
Virginia, Mr. Meeks of New York, Mrs. Jones of Ohio, Mrs. Tauscher, Ms. 
   DeGette, Mr. Boucher, Ms. McKinney, Mr. Gibbons, Mr. Lantos, Mr. 
   Berman, Mr. Quinn, Mr. Udall of Colorado, Mr. Strickland, and Mr. 
   Turner) 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 exclude from gross income 
computers and Internet access provided by an employer for the personal 
                           use of employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EMPLOYER PROVIDED COMPUTERS AND INTERNET ACCESS TREATED AS 
              EDUCATIONAL ASSISTANCE PROGRAMS.

    (a) In General.--Paragraph (1) of section 127(c) of the Internal 
Revenue Code of 1986 (relating to certain educational assistance 
programs) is amended--
            (1) by striking ``and'' at the end of subparagraph (A), by 
        inserting ``and'' at the end of subparagraph (B), and by 
        inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) the provision, by an employer, of computer 
                equipment or Internet access for an employee,'', and
            (2) by inserting ``(other than computer equipment and 
        Internet access)'' after ``supplies'' in the material following 
        subparagraph (C).
    (b) Maximum Exclusion Rule Not To Apply.--Paragraph (2) of section 
127(a) of such Code is amended--
            (1) by striking ``such assistance'' and inserting 
        ``educational assistance described in subsection (c)(1)(A) or 
        (B)'', and
            (2) by inserting ``for certain educational assistance 
        programs'' after ``exclusion'' in the heading.
    (c) Definitions.--Subsection (c) of section 127 of such Code is 
amended by adding at the end the following new paragraphs:
            ``(8) Internet access.--For purposes of this section, the 
        term `Internet access' means access to the Internet (including 
        necessary equipment) provided by the employer or pursuant to a 
        contract which is arranged for or entered into by the employer.
            ``(9) Computer equipment.--For purposes of this section, 
        the term `computer equipment', whether purchased directly or 
        subsidized by the employer, includes--
                    ``(A) any computer or peripheral equipment (as 
                defined by section 168(i)(2)(B), without regard to 
                clause (iv)(II) of such section),
                    ``(B) any software which is loaded into such 
                computer, and
                    ``(C) technical and service support and other 
                incidental benefits provided in connection with the 
                employer's computer educational program.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to computers and Internet access provided in taxable years 
beginning after December 31, 1999.
                                 <all>