[Congressional Record (Bound Edition), Volume 145 (1999), Part 8]
[Senate]
[Pages 11628-11629]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

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                     NEW MILLENNIUM CLASSROOMS ACT

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                  ABRAHAM AND WYDEN AMENDMENT NO. 539

  (Ordered referred to the Committee on Finance.)
  Mr. ABRAHAM (for himself and Mr. Wyden) submitted an amendment 
intended to be proposed by him to the bill (S. 542) to amend the 
Internal Revenue code of 1986 to expand the deduction for computer 
donations to schools and to allow a tax credit for donated computers; 
as follows:

       On page 3, lines 11 and 12, strike ``(as defined in section 
     170(e)(6)(B))''.
       On page 3, between lines 13 and 14, insert:
       ``(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.
       On page 3, line 14, strike ``(b)'' and insert ``(c)''.
       On page 3, line 18, strike ``(as so defined)''.
       On page 3, line 24, strike ``(c)'' and insert ``(d)''.
       On page 4, line 1, strike ``(d)'' and insert ``(e)''.
       On page 4, line 4, add end quotation marks after the 
     period.

 Mr. ABRAHAM. Mr. President, today my good friend Senator Wyden 
and myself are filing an amendment in the Record to S. 542, the New 
Millennium Classrooms Act. The Abraham-Wyden amendment would mandate 
that in order for a company to receive the enhanced computer donation 
tax credit, the computer must be equipped with an operating system, 
ensuring donated computers will be fully operational as soon as they 
are received by schools.
  All of us can agree that our schools are in desperate need of high 
tech computer equipment and Internet access. The New Millennium 
Classrooms Act address this need through enhanced tax incentives for 
companies donating computers to schools.
  Mr. President, we can also agree that this valuable equipment is 
rendered useless if it is given to schools incomplete. To work 
properly, computers must be furnished with an operating system. Without 
this software, the equipment simply sits on a shelf until the school 
itself can find the means to procure and then install the necessary 
operating system. Mr. President, this equipment offers nothing toward a 
child's knowledge and education if it is capable of little more than 
filling storage space and gathering dust. The Abraham-Wyden amendment, 
recognizing this reality, requires an operating system to be installed 
on donated computers, guaranteeing complete, quality, ready-to-go 
equipment.
  In addition, the Abraham-Wyden amendment would ensure that schools 
are not subjected to faulty or broken hardware. Without an operating 
system there is no way to tell if a donated computer is functioning 
properly. Sophisticated hardware can be easily damaged during transport 
or even when the donating company's private files and documents are 
removed. With an operating system installed, ascertaining the condition 
of the equipment is as simple as plugging it in and turning it one. 
Without the operating system, it could be weeks before the school is 
aware of any problems concerning the donation, burdening an already 
financially strapped school with added, and unnecessary, costs.
  Mr. President, allow me to reiterate how important this technology is 
to our children's future. By the year 2000, less than one year from 
now, more than 60 percent of all jobs in this country will demand high 
tech skills. Computers and the Internet continue to drastically change 
the face of business and communications on a global level, developing 
at a pace far surpassing what anyone predicted even just a few years 
ago. With the passage of the New Millennium Classrooms Act, all our 
children will have a chance at succeeding in the new technological 
millennium.
  I ask that the text of the letter of support from Microsoft for the 
New Millennium Classrooms Act be printed in the Record.
  The letter is printed as follows:

                                            Microsoft Corporation,


                                    Law and Corporate Affairs,

                                     Washington, DC, May 28, 1999.
     Hon. Spencer Abraham,
     Dirksen Senate Office Building,
     U.S. Senate, Washington, DC.
       Dear Senator Abraham: Microsoft supports your effort, 
     through the New Millennium Classrooms Act, to increase 
     charitable contributions of personal computers to schools and 
     other non-profit organizations. Microsoft appreciates the 
     enormous needs in our nation's schools for access to 
     technology. We work closely with businesses, charitable 
     organizations, and educators in an effort to increase the 
     technology available in schools in order to create 
     opportunities for learning by our children.
       to help accomplish this goal, Microsoft supports efforts to 
     stimulate the charitable

[[Page 11629]]

     donation of personal computers to schools. The New Millennium 
     Classrooms Act provides a helpful incentive to spur donations 
     of computers to schools. We also appreciate your interest in 
     ensuring that donated computers have valid operating systems, 
     which helps to promote legitimate software use and to fight 
     software piracy. Under this program, Microsoft will approve a 
     transfer without charge from the donor to the school of the 
     valid Microsoft operating system license on the computer at 
     the time of transfer.
       We believe the New Millennium Classrooms Classrooms Act is 
     helpful legislation for our nation's schools and we are proud 
     to support it.
       Thank you for once again demonstrating your leadership on 
     high technology issues and your commitment to our nation's 
     schools and children.
           Sincerely,
                                                   Jack Krumholtz,
         Director of Federal Government Affairs, Senior Corporate 
     Attorney.

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