[Congressional Record Volume 146, Number 33 (Wednesday, March 22, 2000)]
[House]
[Pages H1248-H1249]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 DIGITAL DIVIDE ELIMINATION ACT OF 2000

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Louisiana (Mr. Jefferson) is recognized for 5 minutes.
  Mr. JEFFERSON. Mr. Speaker, I am pleased to announce that today my 
colleagues and I introduced the Digital Divide Elimination Act of 2000, 
legislation designed to extend technology access to every home in 
America. I urge every Member's support of this vital piece of 
legislation.
  More and more, America is transforming into a technologically driven 
nation, with every institution being impacted by the Internet and e-
mail. In this new tech-driven economy, computers are becoming the 
crucial link to education, to information, to technological skills, to 
job sources, and to commerce.
  For all Americans, personal and economic success will depend on 
having the ability to understand and use these powerful information 
tools. However, according to the Commerce Department's report defining 
the digital divide, a large segment of the population has no access to 
technology at all. In fact, less than 10 percent of households with 
income below $20,000 own computers or have used the Internet, an 
alarming statistic. Unless this changes, these poor families, in both 
rural and urban areas, will be left behind. Millions of Americans will 
not have the tools necessary to compete in the new economy and will 
become the first second-class citizens of the information age.
  The digital divide has replaced Y2K as the major tech crisis facing 
America. Educators, Federal and local legislators and industry leaders 
have all begun to realize that the digital divide in America is a 
reality and are taking steps to bring technology to schools and 
libraries across America. We as public officials applaud them for their 
philanthropic efforts.
  In addition, there are current and pending Federal legislation that 
provides incentives for private corporations to increase computer 
donations. The increased charitable deduction for computers under Tax 
Code section 170(e)(6) has boosted computer contributions to public 
schools. The additional tax incentives proposed in the New Millennium 
Classroom Act, H.R. 2303, and the President's budget proposal, will 
provide further inducements and will extend access to libraries and 
technology centers. I support both these efforts.
  However, these efforts are not enough. To truly bridge the digital 
divide, we must build a public-private partnership to bolster these 
efforts, and, more importantly, extend technology access to every home 
in America. Only then will these children and

[[Page H1249]]

their families truly gain an appreciation for technology and the 
Internet, in the home, unfettered by the constraints of an 
institutional setting.
  The legislation which we introduced this morning provides the 
incentives to bridge this gap and ignite the massive effort needed to 
make the information age a classless society. The legislation will 
induce private companies to donate computers, Internet access, software 
and technology training to schools, libraries, computer centers, and 
homes of poor families. In addition, the tax incentives will make it 
less costly for poor families to purchase computers.
  Let me tell you what the legislation will do: first, the legislation 
will provide a refundable credit equal to 50 percent of the cost for 
computer purchases by families receiving the Earned Income Tax Credit, 
up to $500. While the costs of computers and Internet access are 
dropping, the cost of a computer still remains a barrier for many low-
income families and many working families. Returning half of the cost 
of the computer to these families, or, in some cases, all, if computers 
are less expensive, will help to lessen the financial toll. Just a 
little assistance can go a long way towards helping working families 
help themselves and provide a brighter future for their children.
  Second, the legislation increases the charitable deduction for 
computer donations to the higher of the depreciated costs of the 
computer and the market price of the computer.

                              {time}  1830

  Many corporations have already stepped up to the plate and have 
offered their assistance in trying to bridge this digital divide. 
However, if we are truly to give every American access to technology, 
more has to be done and here government should play a role. As a result 
of this provision, computer manufacturers will have a greater incentive 
to donate unsold computers because they can deduct the full value of 
the computer.
  Mr. Speaker, in addition, nonmanufacturers will also have a greater 
incentive to donate computer equipment even where the depreciated cost 
of the computer exceeds the market price of the computer. Under current 
law, it is more economical for many nonmanufacturers to throw away used 
computers than to donate them to charity because they can take a higher 
tax deduction for disposing of the computer than for donating it. That 
is clearly bad tax policy, Mr. Speaker, and thankfully this provision 
will change that result.
  Third, the legislation will extend the special charitable deduction 
for computer donations through 2004 and expand it to include donations, 
not only to libraries and training centers, but also to nonprofits that 
provide computer technology to poor families.
  The experience of Computers for Youth in New York City which to date 
has delivered 103 fully-loaded Pentium computers to the homes of 7th 
and 8th graders in a South Bronx middle school highlights the need to 
extend these tax incentives to nonprofit organizations that are placing 
computers in the homes of poor families.
  Computers for Youth has scratched the surface in this one place in 
New York. We need to encourage similar efforts by nonprofits across the 
country.
  In conclusion, the President has placed priority on this issue and 
included $2 billion of tax incentives in his budget. I applaud him for 
this effort. This legislation goes even further to bridge the digital 
divide by focusing itself not only on provisions outside the home, but 
to bring computers to every home of every poor family in America. I 
appreciate this chance to bring this legislation to the American 
people.

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