[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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