[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4476 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4476

  To amend the Internal Revenue Code of 1986 to extend the charitable 
  deduction for the donation of computer technology and equipment to 
       elementary and secondary schools, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1998

Ms. Lofgren (for herself, Mr. Frost, and Mr. Underwood) 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 extend the charitable 
  deduction for the donation of computer technology and equipment to 
       elementary and secondary schools, 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 ``Computers for the Children Act''.

SEC. 2. CONTRIBUTIONS OF COMPUTER TECHNOLOGY AND EQUIPMENT FOR 
              ELEMENTARY OR SECONDARY SCHOOL PURPOSES.

    (a) Permanent Extension.--Section 170(e)(6) of the Internal Revenue 
Code of 1986 is amended by striking subparagraph (F).
    (b) Donee Defined.--Subparagraph (E) of section 170(e)(6) of such 
Code is amended by adding at the end the following new clause:
                            ``(iii) Donee.--The term `donee' means, 
                        with respect to a qualified educational 
                        contribution, an organization or entity 
                        described in subclause (I) or (II) of 
                        subparagraph (B)(i).''.
    (c) Payment of Shipping, Transfer, and Installation Costs.--
Subparagraph (B) of section 170(e)(6) of such Code (as amended by 
subsection (b) of this section) is further amended by redesignating 
clauses (vi) and (vii) as clauses (vii) and (viii), respectively, and 
by striking clause (v) and inserting the following:
                            ``(v) the property is not transferred by 
                        the donee in exchange for money, other 
                        property, or services,
                            ``(vi) no payment is made by the donee to 
                        the donor for such property other than for the 
                        shipping, transfer, and installation costs with 
                        respect to such property,''.
    (d) Refurbished Equipment.--Subparagraph (E) of section 170(e)(6) 
of such Code (as amended by subsection (b) of this section) is further 
amended by adding at the end the following new clause:
                            ``(iv) Refurbished equipment.--In the case 
                        of property refurbished by the taxpayer--
                                    ``(I) such property shall be 
                                treated as property newly constructed 
                                by the taxpayer, and
                                    ``(II) the date such refurbishment 
                                is substantially completed shall be 
                                treated as the date of construction of 
                                such property.''.
    (e) Eligibility of Community Colleges as Donees.--
            (1) In general.--Clause (iv) of section 170(e)(6)(B) of 
        such Code is amended by inserting ``or in a community college'' 
        after ``grades K-12''.
            (2) Definition.--Subparagraph (E) of section 170(e)(6) (as 
        amended by subsections (b) and (d) of this section) is further 
        amended by adding at the end the following new clause:
                            ``(v) Community college.--The term 
                        `community college' means a public institution 
                        that provides a 2-year educational program 
                        which is acceptable for full credit toward a 
                        bachelor's degree.''.
            (3) Conforming amendments.--
                    (A) The heading for paragraph (6) of section 170(e) 
                of such Code is amended by striking ``elementary or 
                secondary school'' and inserting ``certain 
                educational''.
                    (B) Subparagraphs (A), (B), and (C) of section 
                170(e)(6) of such Code are each amended by striking 
                ``qualified elementary or secondary educational 
                contribution'' each place it appears in the text and 
                the heading in subparagraph (B) and inserting 
                ``qualified educational contribution''.
    (f) Repeal of Rule Relating to Construction.--Paragraph (6) of 
section 170(e) of such Code (as amended by subsections (a) through (e) 
of this section) is further amended by striking subparagraph (D) and 
redesignating subparagraph (E) as subparagraph (D).
    (g) Effective Date.--The amendments made by this section shall 
apply as if included in the amendment made by section 224 of the 
Taxpayer Relief Act of 1997.
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