[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3632 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3632

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
    expenses related to the purchase and installation of qualifying 
                  electronic premise security systems.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2005

Mr. LaTourette 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 a deduction for 
    expenses related to the purchase and installation of qualifying 
                  electronic premise security systems.

    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 ``Secure America's Homes and 
Businesses Act of 2005.''

SEC. 2. DEDUCTION FOR PURCHASE AND INSTALLATION OF ELECTRONIC PREMISE 
              SECURITY SYSTEMS.

    (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 181 
the following new section:

``SEC. 182. ELECTRONIC PREMISE SECURITY SYSTEMS.

    ``(a) Allowance of Deduction.--In the case of a taxpayer who elects 
the application of this section, there shall be allowed as a deduction 
for the taxable year an amount equal to the cost of any expenses 
relating to the purchase and professional installation of a qualifying 
electronic premise security system in a residential or commercial 
premise owned or occupied by the taxpayer during such taxable year.
    ``(b) Maximum Deduction.--The deduction allowed by subsection (a) 
for the taxable year shall not exceed--
            ``(1) in the case of a qualifying electronic premise 
        security system installed in a residential premise, $5,000, and
            ``(2) in the case of a qualifying electronic premise 
        security system installed in a commercial premise, $50,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying electronic premise security system.--The 
        term `qualifying electronic premise security system' means any 
        of the following:
                    ``(A) Electronic fire or life safety devices, 
                intrusion detection alarms, and any other burglar 
                alarms or devices.
                    ``(B) Video surveillance or other security cameras 
                and equipment.
                    ``(C) Access controls, including biometric 
                controls, automated fingerprint identification systems, 
                and other electronic access control devices.
                    ``(D) Components, wiring, system displays, 
                terminals, auxiliary power supplies, and other 
                equipment necessary or incidental to the installation 
                and operation of any item described in subparagraph 
                (A), (B), or (C).
            ``(2) Premise.--
                    ``(A) Residential premise.--The term `residential 
                premise' means any house, condominium, cooperative 
                unit, boat, or trailer used as a dwelling by the 
                taxpayer.
                    ``(B) Commercial premise.--The term `commercial 
                premise' means any structure, part of a structure, or 
                property used by the taxpayer for commercial, retail, 
                or business purposes, including parking lots and other 
                outside areas.
    ``(d) Basis Reduction.--For purposes of this title, the basis of 
any property shall be reduced by the portion of the cost of such 
property taken into account under subsection (a).''.
    (b) Conforming Amendments.--
            (1) Section 263(a)(1) of such Code (relating to capital 
        expenditures) is amended by striking ``or'' at the end of 
        subparagraph (H), by striking the period at the end of 
        subparagraph (I) and inserting ``, or'', and by inserting after 
        subparagraph (I) the following new subparagraph:
                    ``(J) expenditures for which a deduction is allowed 
                under section 182.''.
            (2) Section 1016(a) of such Code (relating to adjustments 
        to basis) is amended by striking ``and'' at the end of 
        paragraph (30), by striking the period and inserting ``, and'' 
        at the end of paragraph (31), and by adding at the end the 
        following new paragraph:
            ``(32) to the extent provided in section 182.''.
            (3) 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 181 the following new item:

``Sec. 182. Electronic premise security systems.''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
taxable years beginning after December 31, 2005.
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