[Congressional Record (Bound Edition), Volume 146 (2000), Part 4]
[Extensions of Remarks]
[Page 5845]
[From the U.S. Government Publishing Office, www.gpo.gov]



                    COMPUTER DEPRECIATION REFORM ACT

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                           HON. JERRY WELLER

                              of illinois

                    in the house of representatives

                        Thursday, April 13, 2000

  Mr. WELLER. Mr. Speaker, today, I join my colleagues, Tom Davis of 
Virginia, Billy Tauzin of Louisiana and Jennifer Dunn of Washington, in 
introducing the Computer Depreciation Reform Act of 2000 to allow 
businesses to expense their computer equipment. Currently, businesses 
must depreciate their computer equipment over a 5-year period. I 
believe that this 5-year depreciation lifetime for tax purposes is 
clearly outdated. Many companies today must update their computers as 
quickly as every 14 months in order to stay current technologically.
  I believe it is time to update an outdated Tax Code to reflect the 
realities of today's technology-based workplace. A 5-year depreciation 
schedule for business computers is no longer realistic.
  The Computer Depreciation Reform Act allows every company, from the 
neighborhood real estate office, to the local hospital, to the local 
bank to fully depreciate, or expense, their computer equipment during 
the tax year in which the equipment is purchased. As a result, these 
companies will no longer be forced to keep their equipment ``on the 
books'' for tax purposes long after its useful life has become 
obsolete.
  Mr. Speaker, I look forward to working with my colleagues on both 
sides of the aisle, the leadership, and Chairman Archer to update the 
Tax Code to reflect the realities of today's technological workplace.

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