[Congressional Record Volume 142, Number 73 (Wednesday, May 22, 1996)]
[Extensions of Remarks]
[Pages E858-E859]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTRODUCTION OF THE COMPUTER DONATION INCENTIVE ACT

                                 ______


                           HON. ANNA G. ESHOO

                             of california

                    in the house of representatives

                         Tuesday, May 21, 1996

  Ms. ESHOO. Mr. Speaker, today I am introducing the Computer Donation 
Incentive Act. This legislation is needed to encourage greater 
corporate involvement in the tremendous task of bringing computer 
technology to our public schools and other public facilities used by 
children.
  Currently, there are two types of charitable deductions for donated 
computer equipment under the Internal Revenue Service Code--standard 
and enhanced. Under the standard deduction, all donations by 
manufacturers of computer equipment to schools are allowed to deduct 
the cost of manufacturing the equipment.
  The enhanced deduction provisions of the Code allow an additional 
deduction of about \1/2\ the gain manufacturers would have realized 
based on the fair market valuation of the equipment. For elementary 
schools, this enhanced deduction is currently limited to donations made 
by manufacturers to private schools.
  This legislation is designed to increase donations by using the Tax 
Code as a carrot, rather than a stick. Specifically, the bill brings 
public schoolchildren in elementary and secondary schools into parity 
with their counterparts in private schools by allowing enhanced

[[Page E859]]

deductions for public schools; extends the enhanced deduction to 
libraries, local governments, community centers, and other 
organizations, such as boys and girls clubs, that promote the education 
of children; expresses the sense of Congress that donations to 
underprivileged schools should be a priority; allows nonmanufacturers 
the same enhanced deduction as manufacturers, so long as the original 
use of the computer originated with the taxpayer seeking the deduction. 
Provides that charitable contributions must be made within 3 years from 
the date the corporation purchased the computer; and clarifies that 
tangible personal property includes software.
  Mr. Speaker, computers can be the most important new learning tool in 
our classrooms since the chalkboard. Studies show that children with 
access to computers learn faster and better than those who don't. Their 
scores on standardized tests go up 10 to 15 percent. They master basic 
skills in significantly less time. And they stay in school more often. 
But computers will never realize their full potential in schools unless 
we figure out better ways to get them in the hands of our children.
  Silicon Valley has been blessed with several private-public 
initiatives to improve the technology available in our schools. Efforts 
like Challenge 2000, Net Day 96, the 21st Century Education Initiative, 
and Smart Valley's SmartSchools project continue to improve educational 
opportunities for students in our community.
  To better educate children, our policies should encourage and reward 
businesses to produce winning outcomes. The Computer Donation Incentive 
Act would accomplish these goals by encouraging corporations to donate 
computers to schools, libraries, local governments, and other 
organizations dedicated to children's learning.
  I urge my colleagues to support this bill.

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