[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3562 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 3562

To amend the Internal Revenue Code of 1986 to allow businesses a credit 
for security devices, assessments, and other security-related expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 20, 2003

 Mr. Shuster 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 businesses a credit 
for security devices, assessments, and other security-related expenses.

    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 ``Prevent Act of 2003''.

SEC. 2. BUSINESS CREDIT FOR SECURITY DEVICES, ASSESSMENTS, AND OTHER 
              SECURITY-RELATED EXPENSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45G. CERTAIN BUSINESS SECURITY EXPENDITURES.

    ``(a) In General.--For purposes of section 38, the building 
security credit determined under this section is an amount equal to the 
sum of--
            ``(1) 20 percent of the cost of each qualified building 
        securities device placed in service by the taxpayer during the 
        taxable year,
            ``(2) 30 percent of the qualified security assessment 
        expenses paid or incurred by the taxpayer during the taxable 
        year, and
            ``(3) 30 percent of the co-location property placed in 
        service by the taxpayer during the taxable year.
    ``(b) Qualified Building Security Device.--For purposes of this 
section--
            ``(1) Qualified building security device.--The term 
        `qualified building security device' means a security device 
        (to which section 168 applies)--
                    ``(A) which is acquired by purchase (as defined in 
                section 179(d)(2)), and
                    ``(B) which is used to provide security for any 
                building used by the taxpayer in any trade or business.
            ``(2) 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) An electronic device capable of tracking or 
                verifying the presence of assets.
                    ``(H) High efficiency air filtering systems.
                    ``(I) Mechanical and non-mechanical vehicle 
                arresting barricades.
                    ``(J) Metal detectors.
                    ``(K) Signal repeating devices for emergency 
                response personnel wireless communication systems.
                    ``(L) Components, wiring, system displays, 
                terminals, auxiliary power supplies, computer systems, 
                software, networking infrastructure and other equipment 
                necessary or incidental to the operation of any item 
                described in any of the preceding subparagraphs.
    ``(c) Qualified Security Assessment Expenses.--For purposes of this 
section, the term `qualified security assessment expenses' means, with 
respect to any business premises of the taxpayer, expenses for a 
security analysis of such premises, including--
            ``(1) the susceptibility of such premises to security 
        threats,
            ``(2) the extent to which such threats can damage or 
        interrupt business operations at such premises, and
            ``(3) identifying processes that ensure the continuity of 
        business operations following such damage or interruption at 
        such premises.
    ``(d) Co-Location Property.--The term `co-location property' means 
buildings and equipment the exclusive purpose of which is to replicate 
business operations of the taxpayer in the event of damage or 
interruption of such operations by a terrorism-related disaster, 
including all computer network, telecommunication network and business 
process equipment or any fraction thereof as considered necessary by 
the business.
    ``(e) Recapture of Credit in Certain Cases.--
            ``(1) In general.--If the taxpayer uses co-location 
        property for a purpose other than the purpose described in 
        subsection (d) at any time during the 5-year period beginning 
        on the date that such property is placed in service, then the 
        tax imposed under this chapter for the taxable year in which 
        such use occurs is increased by the credit recapture amount.
            ``(2) Credit recapture amount.--For purposes of paragraph 
        (1), the credit recapture amount is an amount equal to the sum 
        of--
                    ``(A) the aggregate decrease in the credits allowed 
                to the taxpayer under section 38 for all prior taxable 
                years which would have resulted if no credit had been 
                determined under this section with respect to such 
                property, plus
                    ``(B) interest at the underpayment rate established 
                under section 6621 on the amount determined under 
                subparagraph (A) for each prior taxable year for the 
                period beginning on the due date for filing the return 
                for the prior taxable year involved.
        No deduction shall be allowed under this chapter for interest 
        described in subparagraph (B).
            ``(3) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (1) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under this subsection shall not be treated as a tax 
                imposed by this chapter for purposes of determining the 
                amount of any credit under this chapter or for purposes 
                of section 55.''.
    (b) Credit Treated as Business Credit.--Section 38(b) of such Code 
is amended by striking ``plus'' at the end of paragraph (14), by 
striking the period at the end of paragraph (15) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(16) the building security credit determined under 
        section 45G(a).''.
    (c) No Carrybacks.--Subsection (d) of section 39 of such Code 
(relating to carryback and carryforward of unused credits) is amended 
by adding at the end the following:
            ``(11) No carryback of section 45g credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the building security credit 
        determined under section 45G may be carried back to a taxable 
        year ending before the date of the enactment of section 45G.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``45G. Certain business security expenditures.''.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after the date of the enactment of this Act in 
        taxable years ending after such date.
            (2) Assessment expenses.--The amendments made by this 
        section shall apply to qualified security assessment expenses 
        paid or incurred after the date of the enactment of this Act in 
        taxable years ending after such date.
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