[Congressional Record Volume 147, Number 18 (Thursday, February 8, 2001)]
[Senate]
[Pages S1223-S1224]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CLELAND (for himself and Mr. Wyden):
  S. 292. A bill to amend the Internal Revenue Code of 1986 to expand 
the enhanced deduction for corporate donations of computer technology 
to senior centers and community centers; to the Committee on Finance.
  Mr. CLELAND. Mr. President, the U.S. Department of Commerce's latest 
report on Internet access in the U.S. is out. According to the 
Department's Falling Through the Net: Toward Digital Inclusion, 
published last October, more Americans than ever have Internet access 
and own computers.
  The number of Americans using the Internet jumped to 116.5 million in 
August 2000, 31.9 million more Americans than were online in December 
1998. And groups that have traditionally been digital ``have nots'' are 
making significant gains, according to the Commerce report's findings. 
Almost 39 percent of rural households, for example, now have Internet 
connections, a 75 percent increase over the last 20 months. The report 
found that African American households are now more than twice as 
likely to have Internet access at home than they were 20 months ago. 
Similarly, Internet access in Hispanic households has also nearly 
doubled and now stands at 23.6 percent. And more Americans at every 
income level have Internet access in their homes, especially at the 
middle income levels. Today, two out of every three households earning 
more than $50,000 have Internet connections.
  Although more Americans than ever are connected to the Internet, the 
report concludes that a ``digital divide'' still exists ``between those 
with different levels of income and education, different racial and 
ethnic groups, old and young, single and dual-parent families, and 
those with and without disabilities.'' According to the Commerce 
Department report, for example, more than three-fourths of all 
households earning in excess of $75,000 use the Internet at home, while 
less than one-fifth of the households with incomes of under $15,000 do. 
In some cases, the digital divide has even expanded over the last 20 
months. The gap in Internet access rates between African American 
households and the nation as a whole is now 18 percent--3 percent more 
than in December 1998. And the gap in Internet access between Hispanic 
households and the national average is 17.9 percent--4.3 percent more 
than it was 20 months ago.
  Increasing numbers of Americans are using the Internet to vote, shop, 
pay bills, take education courses, and acquire new skills. It is 
therefore becoming more and more critical that all Americans have the 
tools necessary for full participation in the Information Age economy. 
Access to these tools is essential to ensure that our economy continues 
to grow and that in the future no one is left behind.
  A viable alternative for many of these under-served individuals is 
Internet access outside the home, and statistics show that computer use 
at schools, libraries, and other public access points such as community 
centers is on the rise. Today I am joined by my distinguished 
colleague, Senator Wyden, in introducing the Community Technology 
Assistance Act. Currently, the special enhanced tax deduction exists in 
the case of computer equipment donated to elementary and secondary 
schools and public libraries. Our bill would expand this tax incentive 
to include computer donations to community and senior centers as well. 
Consider the many high-profile technology and Internet related 
companies, such as Microsoft, Intel and AmericaOnline, that have 
donated computer equipment and web access to schools and universities 
across America. Our bill would encourage companies and individuals to 
invest in their community and jump start efforts to help bridge the 
digital divide in rural and low-income areas everywhere.
  In addition, we know a digital divide exists between seniors and the 
population as a whole. In fact, the October 2000 Commerce Department 
report found that individuals over the age of 50 are among the least 
likely to be connected to the Internet, with an Internet use rate of 
less than 30 percent. Internet access at senior centers offers older 
Americans a promising opportunity. According to the National 
Association of State Units on Aging, eight states have conducted 
surveys on computer and on-line access at their senior centers. 
Pennsylvania reports, for example, that while more than 250 of their 
650 senior centers are linked to the Internet, many more need 
computers. West Virginia indicates that every center that has opened a 
computer training program presently has a waiting list. In an informal 
survey, Georgia reports that no more than half of the state's 
approximately 200 senior centers have computers available for 
participant use--and ``that would be a generous estimate.'' Clearly, 
the need is there to increase the availability of 21st Century 
technology to America's senior citizens.
  In a society that increasingly relies on computers and the Internet 
to deliver information and enhance communication, we need to ensure 
that all Americans have access to the fundamental tools of the 
Information Age. As the Commerce Department report concludes, there is 
still much more to be done to make certain that we close the gap 
between the digital ``haves'' and ``have nots" and ensure that everyone 
is included in the 21st Century economy. The Community Technology 
Assistance Act is a positive step in creating digital opportunity for 
all Americans.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 292

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Community Technology 
     Assistance Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) From December 1998 to August 2000, the share of 
     Americans using the Internet jumped by over 35 percent, from 
     32.7 percent to 44.4 percent, according to the recent United 
     States Department of Commerce report, Falling Through the 
     Net: Toward Digital Inclusion. If growth continues at that 
     rate, more than half of all Americans will be using the 
     Internet by the middle of this year, the report projects.
       (2) Although more Americans than ever are connected to the 
     Internet, the most recent data show that a ``digital divide'' 
     still exists between those with different levels of income 
     and education, different racial and ethnic groups, old and 
     young, single and dual parent families, and those with and 
     without disabilities, according to the United States 
     Department of Commerce.
       (3) Although both African Americans and Hispanic Americans 
     have shown gains in Internet access over the past 20 months, 
     still only about 16 percent of Hispanic Americans and just 
     under 19 percent of African Americans use the Internet at 
     home, compared to a third of the United States population as 
     a whole.
       (4) The gap in Internet access rates between African 
     American households and the national average is 18 percent; 3 
     percent more than in December 1998 and the gap in Internet 
     access between Hispanic American households and the national 
     average is 17.9 percent; 4.3 percent more than it was in 
     1998.
       (5) Individuals over 50 years old are among the least 
     likely to be Internet users, with an

[[Page S1224]]

     Internet use rate of less than 30 percent. However, 
     individuals in this age group are almost 3 times as likely to 
     be Internet users if they are in the labor force than if they 
     are not.
       (6) Less than 1 in 5 individuals living in households with 
     incomes of less than $15,000 were Internet users in August 
     2000. In contrast, 7 out of 10 individuals living in 
     households with incomes of at least $75,000 had Internet 
     access.
       (7) Schools, libraries, and other public access points, 
     such as community centers, continue to serve those groups 
     that do not have access at home.
       (8) Of those States that have surveyed computer access at 
     senior centers, many report a need for computer and software 
     acquisition.

     SEC. 3. ENHANCED DEDUCTION FOR CORPORATE DONATIONS OF 
                   COMPUTER TECHNOLOGY TO SENIOR CENTERS AND 
                   COMMUNITY CENTERS.

       (a) Expansion of Computer Technology Donations to Senior 
     Centers and Community Centers.--Section 170(e)(6)(B)(i)(II) 
     of the Internal Revenue Code of 1986 (relating to qualified 
     computer contribution) is amended by striking ``or'' at the 
     end of subclause (II) and by inserting after subclause (III) 
     the following:

       ``(IV) a multipurpose senior center (as defined in section 
     102(35) of the Older Americans Act of 1965 (42 U.S.C. 
     3002(35)), as in effect on the date of the enactment of the 
     Community Technology Assistance Act which is described in 
     section 501(c)(3) and exempt from tax under section 501(a) 
     for use by individuals who have attained 60 years of age to 
     improve job skills in computers, or
       ``(V) a nonprofit or governmental community center, 
     including any center within which an after-school or 
     employment training program is operated,''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to contributions made after December 31, 2001.
                                 ______