[Congressional Record Volume 143, Number 86 (Thursday, June 19, 1997)]
[Extensions of Remarks]
[Page E1261]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   THE COMPUTER INVESTMENT ACT--COMMONSENSE DEPRECIATION PERIOD FOR 
                           COMPUTER EQUIPMENT

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                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                        Thursday, June 19, 1997

  Mr. COLLINS. Mr. Speaker, today I rise to introduce important 
legislation that will return common sense to the Internal Revenue Code 
by changing the depreciation period for computer equipment.
  Currently, for tax purposes computer equipment must be depreciated 
over a 5-year period. Ironically, rapid technological advancements now 
being made in the computer industry guarantee that the average useful 
life of this equipment is 14 to 24 months. Businesses in highly 
competitive markets must continually replace computer equipment if they 
are to remain competitive. Although a small business will often 
purchase a new system after 2 years, it must keep the outdated 
equipment on the books for 5 years.
  This legislation will update the Tax Code to ensure that it 
acknowledges ongoing, rapid advancements being made in the computer 
industry. This measure will change the depreciation period from 5 years 
to 2 years, ensuring that businesses are not penalized for making 
investments that keep them competitive. This change will serve to 
promote economic growth and job creation within these competitive 
industries.
  I strongly encourage my colleagues to join Representative Ben Cardin, 
me, and other original cosponsors in support of this important 
legislation.

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