[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1581 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1581

    To amend the Internal Revenue Code of 1986 to allow a business 
  deduction for the purchase and installation of qualifying security 
                         enhancement property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 25, 2001

 Mr. Murkowski introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to allow a business 
  deduction for the purchase and installation of qualifying security 
                         enhancement property.

    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 ``American Security Enhancement 
Investment Act of 2001''.

SEC. 2. BUSINESS DEDUCTION FOR PURCHASE AND INSTALLATION OF QUALIFYING 
              SECURITY ENHANCEMENT PROPERTY.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by inserting after section 
179A the following new section:

``SEC. 179B. SECURITY ENHANCEMENT PROPERTY.

    ``(a) Allowance of Deduction.--A taxpayer may elect to treat the 
cost of any qualifying security enhancement 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 such device is 
placed in service.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualifying security enhancement property.--The term 
        `qualifying security enhancement property' means security 
        enhancement property--
                    ``(A) to which section 168 applies,
                    ``(B) which is acquired by purchase (as defined in 
                section 179(d)(2)), and
                    ``(C) which is installed or placed in service in or 
                outside of a building which is owned or occupied by the 
                taxpayer and which is located in the United States.
            ``(2) Security enhancement property.--
                    ``(A) In general.--The term `security enhancement 
                property' means property which is specifically and 
                primarily designed when installed in or outside of a 
                building--
                            ``(i) to detect or prevent the unlawful 
                        access by individuals into the building or onto 
                        its grounds,
                            ``(ii) to detect or prevent the unlawful 
                        bringing into the building or onto its grounds 
                        of weapons, explosives, hazardous materials, or 
                        other property capable of harming the occupants 
                        of the building or damaging the building, or
                            ``(iii) to protect occupants of the 
                        building or the building from the effects of 
                        property described in clause (ii).
                    ``(B) Certain property included.--The term 
                `security enhancement property' includes--
                            ``(i) any security device, or
                            ``(ii) any barrier to access to the 
                        building grounds.
            ``(3) Security device.--The term `security device' means 
        any of the following:
                    ``(A) An electronic access control device or 
                system.
                    ``(B) Biometric identification or verification 
                device or system.
                    ``(C) Closed-circuit television or other 
                surveillance and security cameras and equipment.
                    ``(D) Locks for doors and windows, including 
                tumbler, key, and numerical or other coded devices.
                    ``(E) Computers and software used to combat 
                cyberterrorism.
                    ``(F) Electronic alarm systems to provide detection 
                notification and off-premises transmission of an 
                unauthorized entry, attack, or fire.
                    ``(G) Components, wiring, system displays, 
                terminals, auxiliary power supplies, and other 
                equipment necessary or incidental to the operation of 
                any item described in subparagraph (A), (B), (C), (D), 
                (E), or (F).
            ``(4) Building.--The term `building' includes any structure 
        or part of a structure used for commercial, retail, or business 
        purposes.
    ``(c) Special Rules.--
            ``(1) Basis reduction.--For purposes of this subtitle, if a 
        deduction is allowed under this section with respect to the 
        purchase of a qualifying security device, the basis of such 
        device shall be reduced by the amount of the deduction so 
        allowed.
            ``(2) Only incremental cost included.--If qualifying 
        security enhancement property has a use or function other than 
        that described in subsection (b)(2), only the incremental cost 
        of the use or function so described shall be taken into 
        account.
            ``(3) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (3) and (4) of section 179(b), section 179(c), 
        and paragraphs (3), (4), (8), and (10) of section 179(d), shall 
        apply for purposes of this section.''
    (b) Conforming and Clerical Amendments.--
            (1) Section 263(a)(1) of the Internal Revenue Code of 1986 
        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 inserting after subparagraph (H) the 
        following new subparagraph:
                    ``(I) expenditures for which a deduction is allowed 
                under section 179B.''
            (2) Section 312(k)(3)(B) of such Code is amended--
                    (A) by striking ``or 179A'' and inserting ``, 179A, 
                or 179B'', and
                    (B) by striking ``or 179a'' in the heading and 
                inserting ``, 179a, or 179b''.
            (3) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (27), by striking the period at 
        the end of paragraph (28) and inserting ``, and'', and by 
        inserting after paragraph (28) the following new paragraph:
            ``(29) to the extent provided in section 179B(c)(1),''.
            (4) Section 1245(a) of such Code is amended by inserting 
        ``179B,'' after ``179A,'' both places it appears in paragraphs 
        (2)(C) and (3)(C).
            (5) 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. Security enhancement 
                                        property.''
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after September 10, 2001, in 
taxable years ending after September 10, 2001.
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