To amend the Internal Revenue Code of 1986 to reduce to 3 years the depreciation recovery period for qualified technological equipment.

Amends the Internal Revenue Code to reduce the depreciation recovery period for qualified technological equipment from five to three years. Expands the definition of such equipment for tax purposes.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3057 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3057

  To amend the Internal Revenue Code of 1986 to reduce to 3 years the 
  depreciation recovery period for qualified technological equipment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 5, 2001

   Mr. Watkins of Oklahoma 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 reduce to 3 years the 
  depreciation recovery period for qualified technological equipment.

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

SECTION 1. 3-YEAR RECOVERY PERIOD FOR QUALIFIED TECHNOLOGICAL 
              EQUIPMENT.

    (a) In General.--Subparagraph (A) of section 168(e)(3) of the 
Internal Revenue Code of 1986 (defining 3-year property) is amended by 
striking ``and'' at the end of clause (ii), by striking the period at 
the end of clause (iii) and inserting a comma, and by adding at the end 
the following new clause:
                            ``(iv) any qualified technological 
                        equipment.''
    (b) Additional Property Included as Qualified Technological 
Equipment.--
            (1) In general.--Subparagraph (A) of section 168(i)(2) of 
        such Code (defining qualified technological equipment) is 
        amended by striking ``and'' at the end of clause (ii), and by 
        adding at the end the following new clauses:
                            ``(iv) any wireless telecommunications 
                        equipment,
                            ``(v) any advanced services equipment, and
                            ``(vi) any network or network system 
                        equipment.''
            (2) Definitions.--Paragraph (2) of section 168(i) of such 
        Code is amended by adding at the end the following new 
        subparagraphs:
                    ``(D) 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.
                    ``(E) 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.
                    ``(F) 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) Conforming Amendments.--
            (1) Subparagraph (B) of section 168(e)(3) of such Code is 
        amended--
                    (A) by striking clause (iv) and redesignating 
                clauses (v) and (vi) as clauses (iv) and (v), 
                respectively, and
                    (B) by striking ``clause (vi)(I)'' and inserting 
                ``clause (v)(I)''.
            (2) Subparagraph (C) of section 168(g)(3) of such Code is 
        amended by striking ``5 years'' and inserting ``3 years''.
    (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>