[Congressional Record (Bound Edition), Volume 147 (2001), Part 4]
[Extensions of Remarks]
[Page 5816]
[From the U.S. Government Publishing Office, www.gpo.gov]



      INTRODUCTION OF THE EXPENSING TECHNOLOGY REFORM ACT OF 2001

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                           HON. JERRY WELLER

                              of illinois

                    in the house of representatives

                        Wednesday, April 4, 2001

  Mr. WELLER. Mr. Speaker, today, Representative Neal and I have 
introduced legislation which will update the existing depreciation 
schedules for high tech assets. Currently, businesses must depreciate 
much of their high tech equipment over a 5 year period. This bill would 
allow businesses to expense these assets.
  The 5 year depreciation lifetime for tax purposes is outdated since 
many companies today must update their computers as quickly as every 14 
months in order to stay technologically current. We allow businesses to 
expense their computers, peripheral equipment, servers, networks, 
wireless telecommunications equipment, software, high tech medical 
equipment and copiers in this bill.
  This will stimulate the economy! According to a study conducted by 
the Printing Industries of America, printers would purchase 20 percent 
more computers if the depreciation schedules reflected the actual life 
of the equipment.
  It is time to update an outdated tax code to reflect the realities of 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 
high tech equipment is no longer realistic.
  This legislation will allow every company, from the neighborhood real 
estate office, to the local hospital, to the local bank to fully 
depreciate, or expense, their high tech 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 you and my colleagues to 
get this important pro-business legislation signed into law.

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