[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2308 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2308

To amend the Internal Revenue Code of 1986 to expand the deduction for 
 computer donations to schools and public libraries and to allow a tax 
                     credit for donated computers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 22, 1999

Mr. Portman (for himself, Mr. Becerra, Mr. Cunningham, Mr. Matsui, Mr. 
     Armey, Mr. Watts of Oklahoma, Mr. Tanner, Mr. Jefferson, Mr. 
  Kuykendall, Mrs. Thurman, Mr. Frost, Mr. Fletcher, Mr. Moakley, Mr. 
 Farr of California, Mr. Shays, Mr. Latham, Mr. Cummings, Ms. Lee, Mr. 
   Bilbray, Mr. Shows, Mr. Reyes, Mrs. Kelly, Mrs. Christensen, Mr. 
Filner, Mr. Pitts, Mr. Dooley of California, Mr. Scott, Mr. Pickering, 
   Ms. Lofgren, Ms. Sanchez, Mr. Cook, Mrs. Napolitano, Mr. Green of 
Texas, Mr. McIntosh, Ms. Millender-McDonald, Ms. Carson, Mrs. Morella, 
 Mr. Moran of Virginia, Mr. Nadler, Mr. Pastor, Mr. Kildee, Mr. Horn, 
Mr. Kennedy of Rhode Island, and Mr. Hinchey) 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 expand the deduction for 
 computer donations to schools and public libraries and to allow a tax 
                     credit for donated computers.

    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 ``New Millennium Classrooms Act''.

SEC. 2. EXPANSION OF DEDUCTION FOR COMPUTER DONATIONS TO SCHOOLS AND 
              PUBLIC LIBRARIES.

    (a) Expansion of Computer Donations to Public Libraries.--
            (1) In general.--Paragraph (6) of section 170(e) of the 
        Internal Revenue Code of 1986 (relating to special rule for 
        contributions of computer technology and equipment for 
        elementary or secondary school purposes) is amended by striking 
        ``qualified elementary or secondary educational contribution'' 
        each place it occurs in the headings and text and inserting 
        ``qualified computer contribution''.
            (2) Qualified computer contribution defined.--Subclause 
        (II) of section 170(e)(6)(B)(i) of such Code (relating to 
        qualified elementary or secondary educational contribution) is 
        amended by striking ``or'' at the end of subclause (I), by 
        inserting ``or'' at the end of subclause (II), and by inserting 
        after subclause (II) the following new subclause:
                                    ``(III) a public library (within 
                                the meaning of section 213(2)(A) of the 
                                Library Services and Technology Act (20 
                                U.S.C. 9122(2)(A)), as in effect on the 
                                date of the enactment of the New 
                                Millennium Classrooms Act, established 
                                and maintained by an entity described 
                                in subsection (c)(1).''.
            (3) Conforming amendment.--The heading of paragraph (6) of 
        section 170(e) of such Code is amended by striking ``elementary 
        or secondary school purposes'' and inserting ``school and 
        library purposes''.
    (b) Extension of Age of Eligible Computers.--Clause (ii) of section 
170(e)(6)(B) of such Code (defining qualified elementary or secondary 
educational contribution) is amended--
            (1) by striking ``2 years'' and inserting ``3 years'', and
            (2) by striking ``date'' the first place it appears and all 
        that follows and inserting the following:
                            ``date--
                                    ``(I) the taxpayer acquired or 
                                reacquired the property,
                                    ``(II) construction of the property 
                                is substantially completed in the case 
                                of property constructed by the taxpayer 
                                for its own use in its trade or 
                                business and which is not inventory 
                                with respect to the taxpayer, or
                                    ``(III) the property was originally 
                                sold, leased, or otherwise disposed of 
                                by the taxpayer in the case of property 
                                reacquired by the taxpayer.''.
    (c) Reacquired Computers Eligible for Donation.--Clause (iii) of 
section 170(e)(6)(B) of such Code (defining qualified elementary or 
secondary educational contribution) is amended by inserting ``, the 
person from whom the donor reacquires the property,'' after ``the 
donor''.
    (d) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years ending after the date of 
the enactment of this Act.

SEC. 3. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS AND PUBLIC LIBRARIES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following:

``SEC. 45D. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS AND PUBLIC 
              LIBRARIES.

    ``(a) General Rule.--For purposes of section 38, the school and 
public library computer donation credit determined under this section 
is an amount equal to 30 percent of the qualified computer 
contributions made by the taxpayer during the taxable year.
    ``(b) Increased Percentage for Contributions to Schools or Public 
Libraries in Empowerment Zones, Enterprise Communities, and Indian 
Reservations.--In the case of a qualified computer contribution to an 
educational organization, public library, or entity located in an 
empowerment zone or enterprise community designated under section 1391 
or an Indian reservation (as defined in section 168(j)(6)), subsection 
(a) shall be applied by substituting `50 percent' for `30 percent'.
    ``(c) Limitation.--No credit shall be allowed under subsection (a) 
for the contribution of a computer (as defined in section 
168(i)(2)(B)(ii)) if the computer software (as defined in section 
197(e)(3)(B)) that serves as the operating system of such computer has 
not been lawfully installed.
    ``(d) Qualified Computer Contribution.--For purposes of this 
section, the term `qualified computer contribution' has the meaning 
given such term by section 170(e)(6)(B).
    ``(e) Certain Rules Made Applicable.--For purposes of this section, 
rules similar to the rules of paragraphs (1) and (2) of section 41(f) 
shall apply.
    ``(f) Termination.--This section shall not apply to taxable years 
beginning on or after the date which is 3 years after the date of the 
enactment of the New Millennium Classrooms Act.''
    (b) Current Year Business Credit Calculation.--Section 38(b) of 
such Code (relating to current year business credit) is amended by 
striking ``plus'' at the end of paragraph (11), by striking the period 
at the end of paragraph (12) and inserting ``, plus'', and by adding at 
the end the following:
            ``(13) the school and public library computer donation 
        credit determined under section 45D(a).''.
    (c) Disallowance of Deduction by Amount of Credit.--Section 280C of 
such Code (relating to certain expenses for which credits are 
allowable) is amended by adding at the end the following:
    ``(d) Credit for School and Public Library Computer Donations.--No 
deduction shall be allowed for that portion of the qualified computer 
contributions (as defined in section 170(e)(6)(B)) made during the 
taxable year that is equal to the amount of credit determined for the 
taxable year under section 45D(a). In the case of a corporation which 
is a member of a controlled group of corporations (within the meaning 
of section 52(a)) or a trade or business which is treated as being 
under common control with other trades or businesses (within the 
meaning of section 52(b)), this subsection shall be applied under rules 
prescribed by the Secretary similar to the rules applicable under 
subsections (a) and (b) of section 52.''
    (d) Limitation on Carryback.--Subsection (d) of section 39 of such 
Code (relating to carryback and carryforward of unused credits) is 
amended by adding at the end the following:
            ``(9) No carryback of school and public library computer 
        donation credit before effective date.--No amount of unused 
        business credit available under section 45D may be carried back 
        to a taxable year beginning on or before the date of the 
        enactment of this paragraph.''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45C the following:

                              ``Sec. 45D. Credit for computer donations 
                                        to schools and public 
                                        libraries.''
    (f) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after the date 
of the enactment of this Act.
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