[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2281 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2281
To amend the Internal Revenue Code of 1986 to extend and expand the
enhanced deduction for charitable contributions of computers to provide
greater public access to computers, including access by the poor.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 21, 2001
Mr. Jefferson (for himself, Mr. English, Mr. Cummings, Mrs. Jones of
Ohio, Mr. Israel, Mr. Fattah, Mr. Upton, Mr. Berman, Mr. Moore, Mrs.
Clayton, Ms. Carson of Indiana, Mr. Rodriguez, Ms. Slaughter, Mr.
Kucinich, Mr. Wexler, Mr. McGovern, Ms. McKinney, Mr. Frost, Mrs.
Christensen, Mr. Payne, Ms. Jackson-Lee of Texas, Mr. Lewis of Georgia,
Mr. Meeks of New York, Mr. Owens, Ms. Lee, and Mr. Clement) 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 and expand the
enhanced deduction for charitable contributions of computers to provide
greater public access to computers, including access by the poor.
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 Elimination Act of
2001''.
SEC. 2. CREDIT FOR PURCHASE OF COMPUTERS BY LOW-INCOME INDIVIDUALS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 35 as section 36 and by inserting
after section 34 the following new section:
``SEC. 35. PURCHASE OF COMPUTERS BY LOW-INCOME INDIVIDUALS.
``(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by this subtitle
for the taxable year an amount equal to 50 percent of the amount paid
by the taxpayer for qualified computer technology or equipment.
``(b) Dollar Limitation.--The credit allowed by subsection (a) for
any taxable year shall not exceed $500.
``(c) Definitions.--For purposes of this section--
``(1) Eligible individual.--The term `eligible individual'
means any taxpayer who is allowed a credit under section 32
(relating to earned income credit) for the taxable year.
``(2) Qualified computer technology or equipment.--
``(A) In general.--Except as provided in
subparagraph (B), the term `qualified computer
technology or equipment' means any computer technology
or equipment (as defined in section 170(e)(6)) acquired
by purchase (as defined in section 170(d)(2)).
``(B) Exceptions.--
``(i) Certain software excluded.--Such term
shall not include game software or any other
software which is not necessary for--
``(I) use of the computer for
access and use of the Internet
(including email), or
``(II) business or educational use.
``(ii) Computer must be capable of internet
access.--Such term shall not include any
computer which does not have a modem or other
equipment capable of supporting Internet
access.''
(b) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 35 of such Code''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the last item and inserting the following new items:
``Sec. 35. Purchase of computers by low-
income individuals.
``Sec. 36. Overpayments of tax.''
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 3. EXTENSION AND EXPANSION OF ENHANCED DEDUCTION FOR CHARITABLE
CONTRIBUTIONS OF COMPUTERS.
(a) Extension.--Subparagraph (G) of section 170(e)(6) 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 ``December 31, 2003''
and inserting ``June 30, 2004''.
(b) Expansion.--Paragraph (6) of section 170(e) of such Code is
amended by redesignating subparagraphs (C), (D), (E), (F) and (G) as
subparagraphs (D), (E), (F), (G), and (H), respectively, and by
striking all that precedes subparagraph (D) (as so redesignated) and
inserting the following:
``(6) Special rule for contributions of computer technology
and equipment.--
``(A) In general.--The amount of any qualified
computer contribution which is taken into account under
this section shall be the greater of--
``(i) the amount determined without regard
to paragraph (1), or
``(ii) the amount determined with regard to
paragraph (1).
``(B) Qualified computer contribution.--For
purposes of this paragraph, the term `qualified
computer contribution' means a charitable contribution
by a corporation of any computer technology or
equipment, but only if--
``(i) the contribution is to a qualified
organization,
``(ii) the contribution is made not later
than 3 years after the date the taxpayer
acquired the property (or in the case of
property constructed by the taxpayer, the date
the construction of the property is
substantially completed),
``(iii) the original use of the property is
by the donor or the donee,
``(iv) substantially all of the use of the
property by the donee is for use within the
United States and, in the case of a qualified
educational organization, for educational
purposes that are related to the purpose or
function of the organization,
``(v) the property is not transferred by
the donee in exchange for money, other
property, or services, except for shipping,
installation and transfer costs,
``(vi) in the case of a qualified
educational organization, the property will fit
productively into the entity's education plan,
``(vii) the entity's use and disposition of
the property will be in accordance with the
provisions of clauses (iv) and (v), and
``(viii) the property meets such standards,
if any, as the Secretary may prescribe by
regulation to assure that the property meets
minimum functionality and suitability standards
for educational purposes.
``(C) Qualified organization.--For purposes of this
paragraph--
``(i) In general.--The term `qualified
organization' means--
``(I) any qualified educational
organization,
``(II) 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 Community
Renewal Tax Relief Act of 2000,
established and maintained by an entity
described in subsection (c)(1) or
located in an area which is an
empowerment zone, enterprise community,
or a high-poverty area (as determined
by the Secretary),
``(III) any technology center
located in such an area, and
``(IV) any entity described in
section 501(c)(3) and exempt from tax
under section 501(a) that is organized
primarily for purposes of providing
computers without charge to lower
income families.
``(ii) Qualified educational
organization.--For purposes of clause (i), the
term `qualified educational organization'
means--
``(I) an educational organization
described in subsection (b)(1)(A)(ii),
and
``(II) an entity described in
section 501(c)(3) and exempt from tax
under section 501(a) (other than an
entity described in subclause (I)) that
is organized primarily for purposes of
supporting elementary and secondary
education.''
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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