[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4279 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4279

To amend the Internal Revenue Code of 1986 to allow all computers to be 
                               expensed.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2000

 Mr. Weller (for himself, Mr. Davis of Virginia, Mr. Tauzin, Ms. Dunn, 
   Mr. Goodlatte, Mrs. Morella, Mr. Chambliss, Mr. Sweeney, and Mr. 
   Isakson) 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 all computers to be 
                               expensed.

    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 ``Computer Depreciation Reform Act of 
2000''.

SEC. 2. EXPENSING OF COMPUTERS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179A the following new section:

``SEC. 179B. DEDUCTION FOR COMPUTERS.

    ``(a) Allowance of Deduction.--There shall be allowed as a 
deduction an amount equal to the cost of any computer (to which section 
168 applies) which is placed in service during the taxable year and 
which is for use in the active conduct of a trade or business.
    ``(b) Computer.--For purposes of this section, the term `computer' 
means any computer or peripheral equipment (as defined in section 
168(i)(2)(B)).
    ``(c) Basis Reduction.--For purposes of this title, the basis of 
any computer shall be reduced by the cost of such computer taken into 
account under subsection (a).
    ``(d) Business Use Required for at Least 1 Year.--The Secretary 
shall, by regulations, provide for recapturing the benefit under any 
deduction allowable under subsection (a) with respect to any computer 
which is not used predominantly in a trade or business at any time 
during the 1-year period beginning on the date that the computer is 
placed in service.''
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 263(a) of such Code is amended 
        by striking ``or'' at the end of subparagraph (G), by striking 
        the period at the end of subparagraph (H) and inserting ``, 
        or'', and by adding at the end the following new subparagraph:
                    ``(I) expenditures for which a deduction is allowed 
                under section 179B.''
            (2) Subparagraph (B) of section 312(k)(3) of such Code is 
        amended by striking ``or 179A'' each place it appears and 
        inserting ``, 179A, or 179B''.
            (3) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (26), by striking 
        the period at the end of paragraph (27) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(28) to the extent provided in section 179A(c).''
    (c) Effective Date.--The amendments made by this section shall 
apply to computers purchased after the date of the enactment of this 
Act.
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