[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1411 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1411

     To amend the Internal Revenue Code of 1986 to allow qualified 
 technological equipment and computer software to be expensed, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2001

  Mr. Weller (for himself, Mr. Neal of Massachusetts, Mrs. Kelly, Mr. 
Tauzin, Mr. Goodlatte, Mr. Cox, Mr. Cunningham, Mr. Issa, Mrs. Wilson, 
 and Mr. Ehrlich) 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 qualified 
 technological equipment and computer software to be expensed, 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 ``Expensing Technology Reform Act of 
2001''.

SEC. 2. EXPENSING OF QUALIFIED TECHNOLOGICAL EQUIPMENT AND COMPUTER 
              SOFTWARE.

    (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 QUALIFIED TECHNOLOGICAL EQUIPMENT AND 
              COMPUTER SOFTWARE.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
cost of any qualified technological property as an expense which is not 
chargeable to capital account. Any cost so treated shall be allowed as 
a deduction for the taxable year in which the qualified technological 
property is placed in service.
    ``(b) Qualified Technological Property.--For purposes of this 
section--
            ``(1) In general.--The term `qualified technological 
        property' means--
                    ``(A) property to which section 168 applies which 
                is--
                            ``(i) qualified technological equipment (as 
                        defined in section 168(i)(2)),
                            ``(ii) any wireless telecommunications 
                        equipment,
                            ``(iii) any advanced services equipment, or
                            ``(iv) any network or network system 
                        equipment, and
                    ``(B) computer software (as defined in section 
                197(e)(3)(B)) to which section 167 applies.
            ``(2) Wireless telecommunications equipment.--The term 
        `wireless telecommunications equipment' means all equipment 
        used in the transmission, reception, coordination, or switching 
        of wireless telecommunications service. For this purpose, 
        `wireless telecommunications service' includes any commercial 
        mobile radio service as defined in title 47 of the Code of 
        Federal Regulations.
            ``(3) Advanced services equipment.--The term `advanced 
        services equipment' means equipment, excluding cabling, used in 
        the provision of Internet or electronic communications access 
        services or support, or which supports access to electronic 
        media and data and associated communications support, provided 
        that such services or support constitute or directly contribute 
        to the provision of advanced telecommunications capability as 
        that term is defined in section 706(c)(1) of the 
        Telecommunications Act of 1996.
            ``(4) Network or network system equipment.--The term 
        `network or network system equipment' means any information 
        technology equipment, including computer servers, hubs, 
        bridges, switches and routers, which are interconnected so as 
        to enable computers and peripherals to communicate with each 
        other either individually or as a single unit.
    ``(c) Certain Rules To Apply.--Rules similar to the rules of 
paragraphs (4), (5), and (6) of section 179A shall apply for purposes 
of this section.''.
    (b) Inclusion of Copiers, Duplicating Equipment, and Other 
Equipment.--Clause (iv) of section 168(i)(2)(B) of such Code is 
amended--
            (1) by striking ``copiers, duplicating equipment,'' in 
        subclause (II),
            (2) by adding ``and'' at the end of subclause (I),
            (3) by striking ``, and'' at the end of subclause (II) and 
        inserting a period, and
            (4) by striking subclause (III).
    (c) 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) Subparagraph (C) of section 1245(a)(2) of such Code is 
        amended by inserting ``179B,'' after ``179A,''.
            (4) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179A the following new item:

                              ``Sec. 179B. Deduction for qualified 
                                        technological equipment and 
                                        computer software.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
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