[Congressional Record Volume 145, Number 107 (Tuesday, July 27, 1999)]
[Senate]
[Pages S9414-S9415]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      TAXPAYER REFUND ACT OF 1999

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                 ABRAHAM (AND WYDEN) AMENDMENT NO. 1365

  (Ordered to lie on the table.)
  Mr. ABRAHAM (for himself and Mr. Wyden) submitted an amendment 
intended to be proposed by them to the bill, S. 1429, supra; as 
follows:

       On page 371, between lines 16 and 17, insert:

     SEC. ____. EXPANSION OF DEDUCTION FOR COMPUTER DONATIONS TO 
                   SCHOOLS.

       (a) Extension of Age of Eligible Computers.--Section 
     170(e)(6)(B)(ii) (defining

[[Page S9415]]

     qualified elementary or secondary educational contribution) 
     is amended--
       (1) by striking ``2 years'' and inserting ``3 years'', and
       (2) by inserting ``for the taxpayer's own use'' after 
     ``constructed by the taxpayer''.
       (b) Reacquired Computers Eligible for Donation.--
       (1) In general.--Section 170(e)(6)(B)(iii) (defining 
     qualified elementary or secondary educational contribution) 
     is amended by inserting ``, the person from whom the donor 
     reacquires the property,'' after ``the donor''.
       (2) Conforming amendment.--Section 170(e)(6)(B)(ii) is 
     amended by inserting ``or reaquired'' after ``acquired''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years ending 
     after the date of the enactment of this Act.

     SEC. ____2. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits), as amended 
     by this Act, is amended by adding at the end the following:

     ``SEC. 45E. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS.

       ``(a) General Rule.--For purposes of section 38, the school 
     computer donation credit determined under this section is an 
     amount equal to 30 percent of the qualified elementary or 
     secondary educational contributions made by the taxpayer 
     during the taxable year.
       ``(b) Qualified Elementary or Secondary Educational 
     Contribution.--For purposes of this section, the term 
     `qualified elementary or secondary educational contribution' 
     has the meaning given such term by section 170(e)(6)(B), 
     except that such term shall include the contribution of a 
     computer (as defined in section 168(i)(2)(B)(ii)) only if 
     computer software (as defined in section 197(e)(3)(B)) that 
     serves as a computer operating system has been lawfully 
     installed in such computer.
       ``(c) Increased Percentage for Contributions to Schools in 
     Empowerment Zones, Enterprise Communities, and Indian 
     Reservations.--In the case of a qualified elementary or 
     secondary educational contribution to an educational 
     organization or entity located in an empowerment zone or 
     enterprise community designated under section 1391 or an 
     Indian reservation (as defined in section 168(j)(6)), 
     subsection (a) shall be applied by substituting `50 percent' 
     for `30 percent'.
       ``(d) Certain Rules Made Applicable.--For purposes of this 
     section, rules similar to the rules of paragraphs (1) and (2) 
     of section 41(f) shall apply.
       ``(e) Termination.--This section shall not apply to taxable 
     years beginning on or after the date which is 3 years after 
     the date of the enactment of the New Millennium Classrooms 
     Act.''
       (b) Current Year Business Credit Calculation.--Section 
     38(b) (relating to current year business credit), as amended 
     by this Act, is amended by striking ``plus'' at the end of 
     paragraph (12), by striking the period at the end of 
     paragraph (13) and inserting ``, plus'', and by adding at the 
     end the following:
       ``(14) the school computer donation credit determined under 
     section 45E(a).''
       (c) Disallowance of Deduction by Amount of Credit.--Section 
     280C (relating to certain expenses for which credits are 
     allowable) is amended by adding at the end the following:
       ``(d) Credit for School Computer Donations.--No deduction 
     shall be allowed for that portion of the qualified elementary 
     or secondary educational contributions (as defined in section 
     45E(b)) made during the taxable year that is equal to the 
     amount of credit determined for the taxable year under 
     section 45E(a). In the case of a corporation which is a 
     member of a controlled group of corporations (within the 
     meaning of section 52(a)) or a trade or business which is 
     treated as being under common control with other trades or 
     businesses (within the meaning of section 52(b)), this 
     subsection shall be applied under rules prescribed by the 
     Secretary similar to the rules applicable under subsections 
     (a) and (b) of section 52.''
       (d) Limitation on Carryback.--Subsection (d) of section 39 
     (relating to carryback and carryforward of unused credits) is 
     amended by adding at the end the following:
       ``(9) No carryback of school computer donation credit 
     before effective date.--No amount of unused business credit 
     available under section 45E may be carried back to a taxable 
     year beginning on or before the date of the enactment of this 
     paragraph.''
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by this 
     Act, is amended by inserting after the item relating to 
     section 45D the following:

``Sec. 45E. Credit for computer donations to schools.''
       (f) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after the date of the enactment of this Act.

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