[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4274 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4274

 To amend the Internal Revenue Code of 1986 to provide that computers 
provided to employees for personal use are a nontaxable fringe benefit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2000

    Mr. Weller (for himself, Mr. Lewis of Georgia, Mr. Watkins, Mr. 
 Sessions,  Mrs. Wilson, Mr. Campbell, and Mr. Neal of Massachusetts) 
 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 provide that computers 
provided to employees for personal use are a nontaxable fringe benefit.

    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 ``Digital Divide Access to Technology 
Act of 2000''.

SEC. 2. CERTAIN EMPLOYER-PROVIDED COMPUTERS AND INTERNET ACCESS TREATED 
              AS DE MINIMIS FRINGE BENEFITS.

    (a) In General.--Subsection (e) of section 132 of the Internal 
Revenue Code of 1986 (relating to certain fringe benefits) is amended 
by adding at the end the following new paragraphs:
            ``(3) Internet access.--
                    ``(A) In general.--Internet access provided by an 
                employer to the employer's employees (if it would (but 
                for this paragraph) result in an inclusion in the 
                employee's gross income) shall be treated as a de 
                minimis fringe if the requirements of subparagraph (B) 
                are met.
                    ``(B) Requirements.--Internet access meets the 
                requirements of this subparagraph if--
                            ``(i) such access is provided directly by 
                        the employer or pursuant to a contract which is 
                        arranged for or entered into by the employer 
                        with an Internet service provider, and
                            ``(ii) such access is made available to 
                        substantially all of the employees of the 
                        employer on substantially the same basis.
                    ``(C) Certain employees may be excluded.--For 
                purposes of subparagraph (B), there may be excluded 
                from consideration--
                            ``(i) employees who have not completed 6 
                        months of service,
                            ``(ii) part-time or seasonal employees, and
                            ``(iii) employees whose principal place of 
                        employment with the employer is outside of the 
                        United States.
            ``(4) Computers.--
                    ``(A) In general.--Computers provided by an 
                employer to the employer's employees (if such computers 
                would (but for this paragraph) result in an inclusion 
                in the employee's gross income) shall be treated as a 
                de minimis fringe if the requirements of subparagraph 
                (B) are met.
                    ``(B) Requirements.--The provision of computers 
                meets the requirements of this subparagraph if the 
                computers are made available to substantially all of 
                the employees of the employer on substantially the same 
                basis (determined with the application of paragraph 
                (3)(C)).
                    ``(C) Limitation on exclusion where ownership of 
                computer not transferred to employee.--In the case of a 
                computer to which this paragraph applies and the 
                ownership of which is not transferred to the employee 
                as the beginning of the employee's use, the exclusion 
                under this paragraph for any month shall be limited to 
                $35.
                    ``(D) Limitation on exclusion where ownership of 
                computer is transferred to employee.--In the case of a 
                computer to which this paragraph applies and the 
                ownership of which is transferred to the employee, the 
                exclusion under this paragraph shall be limited to 
                $1,260 (reduced by the aggregate exclusion under 
                subparagraph (C) (if any) with respect to such 
                computer.
                    ``(E) Limitations applied on 3-year basis.--In no 
                event shall the aggregate amount excluded from the 
                gross income of an employee under this paragraph with 
                respect to computers provided to such employee from the 
                employer during the taxable year and the 2 preceding 
                taxable years exceed $1,260.
                    ``(F) Computer.--For purposes of this paragraph, 
                the term `computer' includes--
                            ``(i) any computer or peripheral equipment 
                        (as defined by section 168(i)(2)(B)),
                            ``(ii) any software which is loaded into 
                        such computer at the time provided to the 
                        employee, and
                            ``(iii) technical support and other 
                        incidental benefits provided in connection with 
                        the employer's computer benefit program.''
    (b) Effective Date.--The amendment made by this section shall apply 
to computers (as defined in section 132(e)(4)(F) of the Internal 
Revenue Code of 1986, as added by this section) and Internet access 
provided in taxable years ending after the date of the enactment of 
this Act.
                                 <all>