[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1478 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1478

To amend the Internal Revenue Code of 1986 to allow companies to donate 
   computer equipment and software, and training related thereto, to 
elementary and secondary schools for use in their educational programs, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 1997

   Ms. Eshoo (for herself, Ms. Stabenow, Mr. Frost, Ms. Lofgren, Mr. 
 Boucher, Mr. Canady of Florida, Mr. Brown of California, Mr. Dellums, 
  Ms. Pelosi, Mr. Filner, Ms. Rivers, Mrs. Lowey, Mrs. Maloney of New 
 York, Mr. Lampson, Mr. Stupak, Mr. Bonior, Mr. Sandlin, Mr. Ford, Mr. 
 Turner, Ms. Kilpatrick, Mr. Clement, Mr. Underwood, Mrs. Thurman, Mr. 
Doyle, Mr. Moakley, Mr. Lewis of Georgia, Mr. Fattah, Mr. Weygand, Mr. 
McGovern, Mr. Rangel, Mr. Upton, Mrs. Emerson, Mr. Levin, Mrs. Kennelly 
  of Connecticut, and Ms. Hooley of Oregon) 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 companies to donate 
   computer equipment and software, and training related thereto, to 
elementary and secondary schools for use in their educational programs, 
                        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. CHARITABLE CONTRIBUTIONS OF COMPUTER EQUIPMENT AND SOFTWARE 
              TO ELEMENTARY AND SECONDARY SCHOOLS AND TO QUALIFIED 
              ORGANIZATIONS PROVIDING ASSISTANCE TO INDIVIDUALS WITH 
              DISABILITIES.

    (a) In General.--Subsection (e) of section 170 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(6) Special rule for contributions of computer equipment 
        and software used for educational purposes.--
                    ``(A) Limit on reduction.--In the case of a 
                qualified educational contribution, the reduction under 
                paragraph (1)(A) shall be no greater than the amount 
                determined under paragraph (3)(B).
                    ``(B) Qualified educational contribution.--For 
                purposes of this paragraph, the term `qualified 
                educational contribution' means a charitable 
                contribution by a corporation of any computer software 
                or computer or peripheral equipment, but only if--
                            ``(i) the contribution is to--
                                    ``(I) an educational organization 
                                described in subsection (b)(1)(A)(ii),
                                    ``(II) a governmental unit 
                                described in subsection (c)(1), or
                                    ``(III) an organization described 
                                in section 501(c)(3) and exempt from 
                                taxation under section 501(a), or a 
                                governmental unit described in 
                                subsection (c)(1), that has documented 
                                experience and expertise at the 
                                community level in providing training 
                                and evaluation for information 
                                technology services and devices to 
                                individuals with disabilities, their 
                                parents, family members, guardians, 
                                advocates, or authorized 
                                representatives,
                            ``(ii) the contribution is made not later 
                        than 3 years after the date the taxpayer 
                        acquired the property (or in the case of 
                        property constructed by the taxpayer, the date 
                        the construction of the property is 
                        substantially completed),
                            ``(iii) substantially all of the use of the 
                        property by the donee is for use within the 
                        United States for educational purposes related 
                        to the purpose or function of the organization 
                        or unit,
                            ``(iv) the original use of the property 
                        began with--
                                    ``(I) the donee, in the case of 
                                property constructed by the taxpayer or 
                                property of the taxpayer described in 
                                section 1221(1), or
                                    ``(II) the taxpayer, in any case 
                                not described in subclause (I),
                            ``(v) the property is not transferred by 
                        the donee in exchange for money, other 
                        property, or services, and
                            ``(vi) the taxpayer receives from the donee 
                        a written statement representing that its use 
                        and disposition of the property will be in 
                        accordance with the provisions of clauses (iii) 
                        and (v).
                    ``(C) Donations to charity for refurbishing.--
                            ``(i) In general.--For purposes of this 
                        paragraph, a charitable contribution by a 
                        corporation shall be treated as a qualified 
                        education contribution if--
                                    ``(I) such contribution is a 
                                contribution of any computer or 
                                peripheral equipment to a qualified 
                                organization, and
                                    ``(II) the taxpayer receives from 
                                such organization a written statement 
                                representing that its use of the 
                                property (and any use by the 
                                organization or unit to which it 
                                donates the property) meets the needs 
                                of the donee and the requirements of 
                                clause (v) of subparagraph (B).
                            ``(ii) Qualified organization.--For 
                        purposes of clause (i), an organization is a 
                        qualified organization if--
                                    ``(I) the organization is described 
                                in section 501(c)(3) and exempt from 
                                taxation under section 501(a), and
                                    ``(II) a substantial part of the 
                                business of the organization is the 
                                repair and refurbishment of computers 
                                or peripheral equipment and the 
                                donation of such equipment to an 
                                organization or unit described in 
                                subparagraph (B)(i) for a purpose 
                                described in subparagraph (B)(iii).
                    ``(D) Special rules.--For the purposes of this 
                paragraph--
                            ``(i) Construction of property by 
                        taxpayer.--Paragraph (4)(C) shall apply.
                            ``(ii) Refurbishment of property by 
                        taxpayer.--Property that is substantially 
                        refurbished by the taxpayer shall be treated as 
                        property constructed by the taxpayer.
                    ``(E) Definitions.--For the purposes of this 
                paragraph--
                            ``(i) Computer or peripheral equipment.--
                        The term `computer or peripheral equipment' has 
                        the meaning given such term by section 
                        168(i)(2)(B).
                            ``(ii) Computer software.--The term 
                        `computer software' has the meaning given such 
                        term by section 197(e)(3)(B).
                            ``(iii) Educational purpose.--The term 
                        `educational purpose' includes administration 
                        incident to providing education.
                            ``(iv) Disability.--The term `disability' 
                        has the meaning given such term by section 3(2) 
                        of the Americans with Disabilities Act of 1990.
                            ``(v) Information technology.--The term 
                        `information technology' includes any computer 
                        or peripheral equipment, computer software, 
                        digital augmentative speech device, firmware, 
                        and services related thereto.
                            ``(vi) Corporation.--The term `corporation' 
                        has the meaning given such term by paragraph 
                        (4)(D).''
    (b) Computer Training.--Section 170 of such Code is amended by 
adding at the end the following new subsection:
    ``(n) Computer Training.--
            ``(1) In general.--For purposes of this section, the term 
        `charitable contribution' includes a contribution by a 
        corporation of qualified computer training.
            ``(2) Qualified computer training.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualified computer training' means training--
                            ``(i) provided by the taxpayer in the use 
                        of computer software or any computer or 
                        peripheral equipment (as defined in subsection 
                        (e)(6)(E)) contributed to the donee by the 
                        taxpayer for a purpose described in subsection 
                        (e)(6)(B)(iii),
                            ``(ii) provided to an individual employed 
                        by an organization or unit described in 
                        subsection (e)(6)(B)(i), and
                            ``(iii) for which the taxpayer receives 
                        from the donee a written statement representing 
                        that the training is not in exchange for money, 
                        other property, or services.
                    ``(B) Time limitation.--Not more than 8 hours of 
                training may be taken into account under subparagraph 
                (A) with respect to each contribution.
                    ``(C) Valuation.--For the purpose of this 
                subsection, the value of the time of an individual who 
                provides computer training shall be based on the usual 
                wage rate of the individual.''
    (c) Contribution of Digital Augmentative Speech Devices for Use by 
Individuals With Disabilities.--Subsection (e) of section 170 of the 
Internal Revenue Code of 1986, as amended by subsection (a) of this 
section, is further amended by adding at the end the following new 
paragraph:
            ``(7) Special rule for contributions of digital 
        augmentative speech devices.--
                    ``(A) Limit on reduction.--In the case of a 
                contribution or gift of a digital augmentative speech 
                device to an entity described in subparagraph (B)--
                            ``(i) the reduction under paragraph (1)(A) 
                        shall be no greater than the amount determined 
                        under paragraph (3)(B), and
                            ``(ii) qualified training in the use of 
                        such device shall be treated as a charitable 
                        contribution for purposes of this section.
                    ``(B) Entity described.--An entity is described in 
                this subparagraph if the entity is--
                            ``(i) described in section 501(c)(3) and 
                        exempt from taxation under section 501(a), or
                            ``(ii) a governmental unit described in 
                        subsection (c)(1),
                that has documented experience and expertise at the 
                community level in providing training and evaluation 
                for information technology services and devices to 
                individuals with disabilities, their parents, family 
                members, guardians, advocates, or authorized 
                representatives.
                    ``(C) Qualified training.--
                            ``(i) In general.--The term `qualified 
                        training' means training in the use of a 
                        digital augmentative speech device contributed 
                        by the taxpayer under subparagraph (A) to an 
                        entity described in subparagraph (B) that is --
                                    ``(I) provided by the taxpayer,
                                    ``(II) provided to an individual 
                                employed by such entity, and
                                    ``(III) for which the taxpayer 
                                receives from the donee a written 
                                statement representing that the 
                                training meets the requirements of 
                                subparagraph (D).
                    ``(D) Limitations.--
                            ``(i) Exchange for money, etc.--
                        Subparagraph (A) shall not apply to property or 
                        training donated under this paragraph if such 
                        property is transferred by the donee in 
                        exchange for money, other property, or 
                        services.
                            ``(ii) Time and valuation.--Subparagraphs 
                        (B) and (C) of paragraph (6) shall apply to 
                        training subject to this subparagraph.
                    ``(E) Definitions.--For purposes of this paragraph, 
                the terms `disability' and `information technology' 
                have the meaning given such terms by subsection 
                (e)(6)(E).''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.

SEC. 2. REPORT ON EFFECTIVENESS OF CHARITABLE CONTRIBUTIONS OF 
              COMPUTERS AND SOFTWARE IN MEETING EDUCATIONAL NEEDS OF 
              STUDENTS.

    Not later than December 31, 1998, the Comptroller General of the 
United States shall conduct a study on the effectiveness of the 
enhanced charitable contribution under section 170(e)(6) of the 
Internal Revenue Code of 1986 (as amended by section 1 of this Act) in 
meeting educational needs of students in the United States. The 
Comptroller General shall submit the report to the Committee on Ways 
and Means of the House of Representatives and the Committee on Finance 
of the Senate.

SEC. 3. DONATIONS TO UNDERPRIVILEGED SCHOOLS.

    It is the sense of Congress that one of the main purposes of the 
enhanced charitable deduction under section 170(e)(6) of the Internal 
Revenue Code of 1986 (as amended by section 1 of this Act) is to 
encourage the donation of computer equipment and software to--
            (1) schools serving low income communities;
            (2) schools whose fiscal year budgets are below the 
        applicable State-wide norm; and
            (3) schools at which student test scores are substantially 
        below the State-wide norm.
                                 <all>