[Congressional Record Volume 145, Number 57 (Monday, April 26, 1999)]
[Extensions of Remarks]
[Page E763]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E763]]



          THE COMPUTER EQUIPMENT COMMON SENSE DEPRECIATION ACT

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                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                         Monday, April 26, 1999

  Mr. COLLINS. Mr. Speaker, today I rise to introduce 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 five year period. Ironically, rapid technological advancements 
now being made in the computer industry guarantee that the average 
useful life of this equipment is 14-24 months. Highly competitive 
manufacturing businesses must continually replace computer equipment if 
they are to remain competitive. Although a 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a new system after 2 years, it must keep the outdated equipment on the 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 nor penalized for making 
investments that ensure their ability to compete. 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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