[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2981 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2981
To amend the Internal Revenue Code of 1986 to establish a 2-year
recovery period for depreciation of computers and other technological
equipment, a 24-month useful life for depreciation of computer
software, and a 7-year useful life for depreciation of certain auction-
acquired telecommunications licenses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 2, 2001
Mr. Upton (for himself, Mr. Green of Texas, Mr. Burr of North Carolina,
Mr. Gillmor, Mr. Tauzin, Mr. Stearns, Mr. Greenwood, Mr. Barton of
Texas, Ms. Harman, Mr. Camp, Mr. Armey, Mr. Ramstad, Mr. Bass, Mr.
Bilirakis, Mr. LaHood, Mr. Radanovich, Mr. Smith of New Jersey, Mr.
Sessions, Mr. Portman, Mr. Boehner, Mr. Whitfield, Mr. Hoekstra, Mr.
Ose, Mr. Boehlert, Mr. Boucher, Mr. Goodlatte, Mrs. Kelly, Ms. Pryce of
Ohio, Mr. Dreier, Ms. Dunn of Washington, Mr. Foley, Mr. Tom Davis of
Virginia, Mrs. Bono, Mr. DeLay, Mr. Watts of Oklahoma, and Mr. Shimkus)
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 establish a 2-year
recovery period for depreciation of computers and other technological
equipment, a 24-month useful life for depreciation of computer
software, and a 7-year useful life for depreciation of certain auction-
acquired telecommunications licenses.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. 2-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
COMPUTERS AND OTHER TECHNOLOGICAL EQUIPMENT.
(a) 2-Year Applicable Recovery Period for Qualified Technological
Equipment.--
(1) In general.--Paragraph (1) of section 168(c) of the
Internal Revenue Code of 1986 (relating to applicable recovery
period) is amended by inserting before the first item in the
table the following new item:
``Qualified technological equipment................ 2 years''.
(2) Conforming amendment.--Section 168(e)(3)(B) of such
Code (relating to 5-year property) is amended by striking
clause (iv).
(b) 2-Year Recovery Period Under Alternative Depreciation System
for Tax-Exempt Use Property, Etc.--Subparagraph (C) of section
168(g)(3) of such Code (relating to alternative depreciation system for
certain property) is amended by striking ``5 years'' and inserting ``2
years''.
(c) Definition of Qualified Technological Equipment.--
(1) In general.--Subparagraph (A) of section 168(i)(2) of
such Code is amended by striking ``and'' at the end of clause
(ii), by striking the period at the end of clause (iii) and
inserting a comma, and by adding at the end the following:
``(iv) any wireless telecommunications
equipment,
``(v) any advanced services equipment, and
``(vi) any network or network system
equipment.
(2) Wireless telecommunications equipment, etc.--Paragraph
(2) of section 168(i) of such Code is amended by adding at the
end the following:
``(D) Wireless telecommunications equipment.--The
term `wireless telecommunications equipment' means all
equipment (other than towers, buildings, and T-1 lines
(cabling)) 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.
``(E) 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.
``(F) 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.''.
(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.
SEC. 2. 24-MONTH USEFUL LIFE FOR DEPRECIATION OF COMPUTER SOFTWARE.
(a) In General.--Subparagraph (A) of section 167(f)(1) of the
Internal Revenue Code of 1986 (relating to computer software) is
amended by striking ``36 months'' and inserting ``24 months''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act.
SEC. 3. 7-YEAR USEFUL LIFE FOR DEPRECIATION OF CERTAIN AUCTION-ACQUIRED
TELECOMMUNICATIONS LICENSES.
(a) 7-Year Useful Life.--Section 167 of the Internal Revenue Code
of 1986 (relating to depreciation) is amended by redesignating
subsection (h) as subsection (i) and by inserting after subsection (g)
the following new subsection:
``(h) Treatment of Certain Auction-Acquired Telecommunications
Licenses Excluded From Section 197.--
``(1) In general.--If a depreciation deduction is allowable
under subsection (a) with respect to an auction-acquired
telecommunications license, such deduction shall be computed by
using the straight line method and a useful life of 7 years.
``(2) Auction-acquired telecommunications license.--For
purposes of this subsection, the term `auction-acquired
telecommunications license' means any license granted through a
competitive bidding system under section 309(j) of the
Communications Act of 1934 (47 U.S.C. 309(j)).
(b) Exclusion From Section 197.--Subparagraph (D) of section
197(d)(1) of such Code (defining section 197 intangible) is amended by
inserting before the comma the following: ``(other than an auction-
acquired telecommunications license (as defined in section 167(h)) with
respect to which a depreciation deduction is allowable under section
167(a))''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
<all>