[Congressional Record Volume 143, Number 53 (Tuesday, April 29, 1997)]
[Extensions of Remarks]
[Page E783]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTRODUCTION OF THE COMPUTER DONATION INCENTIVE ACT

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                           HON. ANNA G. ESHOO

                             of california

                    in the house of representatives

                        Tuesday, April 29, 1997

  Ms. ESHOO. Mr. Speaker, I rise today to introduce the Computer 
Donation Incentive Act, which would provide greater tax incentives for 
corporate donations of computers, software, and related training for 
educational purposes. Specifically, the legislation would give an 
enhanced tax deduction to companies for such donations to public 
elementary and secondary schools, libraries, recreational centers, and 
other governmental entities. It also would provide an enhanced tax 
break to nonprofit and government organizations that provide computer 
training to people with disabilities.
  I am pleased to have worked closely with my colleague from Michigan, 
Representative Debbie Stabenow, in developing this initiative.
  Bringing our classrooms into the 21st century is a tremendously 
expensive undertaking that cannot be accomplished by government alone. 
We need to encourage greater public-private partnerships for upgrading 
the technology in our schools to make them world class centers for 
excellence in education.
  In Silicon Valley, private efforts, like Challenge 2000 and net day, 
have emerged because our high tech industry recognizes that a computer-
literate work force is needed to keep companies competitive in the 
global market. And while some businesses have been donating computer 
hardware to schools for several years, they have only recently begun to 
recognize that teachers need to be trained to use that equipment if 
they hope to employ it properly in the classroom. The Computer Donation 
Incentive Act will go a long way to encourage more companies to invest 
in our schools, our people, and their own future success.
  Under current law, computer donations from manufacturers to public 
schools qualify for a normal tax deduction worth the cost of making the 
equipment. At the same time, donations to private schools, colleges, 
and universities qualify for an enhanced tax deduction worth 
approximately the production cost of the equipment plus half of the 
profit that the manufacturer would have received if the equipment had 
been sold on the market.
  The Computer Donation Incentive Act would make the enhanced tax 
deduction available for computer hardware and software donations to 
public K-12 schools, libraries, recreational centers, other government 
entities, and qualified organizations that provide computer training to 
people with disabilities. It would also offer the enhanced deduction to 
nonmanufacturers that make charitable computer contributions within 3 
years of the date that computers are purchased. Further, companies 
could claim the enhanced tax deduction for donations of up to 8 hours 
of teacher training associated with hardware and software donations.
  Other features of the legislation include: An enhanced tax deduction 
for computer contributions to nonprofit organizations that repair and 
refurbish equipment that is subsequently donated to public schools, 
other qualifying government organizations, and groups that provide 
computer training to people with disabilities; an enhanced tax 
deduction for donations of digital augmentative speech devices; a sense 
of Congress provision that one of the main purposes of the legislation 
is to encourage computer donations to schools serving low income 
communities; and a General Accounting Office study to be conducted 
before 1999 on the effectiveness of the legislation.
  Mr. Speaker, I urge my colleagues to help encourage companies to make 
a positive difference in our public schools, libraries, and recreation 
centers by supporting the Computer Donation Incentive Act.

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