Computer Equipment Common Sense Depreciation Act

Computer Equipment Common Sense Depreciation Act - Amends the Internal Revenue Code to establish a two-year recovery period for depreciation (including alternative depreciation for tax-exempt use property, etc.) of computers and peripheral equipment used in manufacturing.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1895 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1895

   To amend the Internal Revenue Code of 1986 to establish a 2-year 
recovery period for depreciation of computers and peripheral equipment 
                         used in manufacturing.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2001

 Mr. Collins (for himself, Mr. Cardin, Mr. Udall of Colorado, Mr. Sam 
Johnson of Texas, Mr. Blunt, Mr. Ramstad, Mr. Horn, Mr. Shows, and Mr. 
Miller of Florida) 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 establish a 2-year 
recovery period for depreciation of computers and peripheral equipment 
                         used in manufacturing.

    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 ``Computer Equipment Common Sense 
Depreciation Act''.

SEC. 2. 2-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF COMPUTERS 
              AND PERIPHERAL EQUIPMENT USED IN MANUFACTURING.

    (a) 2-Year Applicable Recovery Period.--
            (1) In general.--Paragraph (1) of section 168(c) of the 
        Internal Revenue Code of 1986 (relating to applicable recovery 
        period) is amended by inserting before the first item in the 
        table the following new item:

  ``Computers or peripheral equipment used in                2 years''.
manufacturing.
            (2) Conforming amendment.--Clause (iv) of section 
        168(e)(3)(B) of such Code (relating to 5-year property) is 
        amended by inserting ``(except computers or peripheral 
        equipment used in manufacturing)'' before the comma.
    (b) 2-Year Recovery Period Under Alternative Depreciation System 
for Tax-Exempt Use Property, Etc.--Subparagraph (C) of section 
168(g)(3) of such Code (relating to alternative depreciation system for 
certain property) is amended to read as follows:
                    ``(C) Qualified technological equipment.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), in the case of any qualified 
                        technological equipment, the recovery period 
                        used for purposes of paragraph (2) shall be 5 
                        years.
                            ``(ii) Computers or peripheral equipment 
                        used in manufacturing.--In the case of any 
                        computer or peripheral equipment used in 
                        manufacturing, the recovery period used for 
                        purposes of paragraph (2) shall be 2 years.''
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2001.
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