[Congressional Record (Bound Edition), Volume 147 (2001), Part 9]
[House]
[Pages 12164-12165]
[From the U.S. Government Publishing Office, www.gpo.gov]



                 DIGITAL DIVIDE ELIMINATION ACT OF 2001

  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 here today to discuss the digital 
divide that is plaguing our country and to garner support for 
legislation my colleagues and I have introduced to help alleviate this 
crisis, H.R. 2281, The Digital Divide Elimination Act of 2001.
  Computers are becoming the crucial link to education, information, 
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 Department of Commerce, 
less than 10 percent of households with income below $20,000 own 
computers or have used the Internet, an absolutely alarming statistic. 
Unless this changes, these poor families in both urban and rural areas 
will be left behind.
  Educators and industry leaders alike realize a serious problem 
associated with the digital divide and are taking steps to bring 
computer technology to schools and libraries across America. We, as 
public officials, applaud these efforts. However, these efforts are not 
enough.
  If we are going to truly give every American access to technology and 
improve the way our children learn, the Federal Government must join in 
to bolster these efforts and, more importantly, to help extend 
technology and technology access to every home in America. Only then 
will these children and their families gain an appreciation for 
technology and the Internet in the home, unfettered by the constraints 
of an institutional setting.
  The legislation my colleagues and I have reintroduced this year 
provides additional tax incentives to induce private companies to 
donate computer technology and to induce poor families to purchase 
computers.
  First, the legislation increases the special deduction for computer 
donations from three-fourths of the computer's sales price to the 
higher of the full sales price or its manufacturing cost. For example, 
if the manufacturing cost of a computer is $500 and the sales price is 
$1,000, the charitable deduction is increased from $750 to $1,000.
  The special deductions for computers has already induced computer 
manufacturers to donate thousands of computers to schools across 
America. Now, as a result of this provision, computer

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manufacturers will have an even greater incentive to donate unsold 
computers because they can deduct the full value of the computer.
  In addition, non-manufacturers will also have a greater incentive to 
donate computer equipment even where the depreciated cost of the 
computer exceeds its market price. Under current law, it is more 
economical for many non-manufacturers 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. Thankfully, this provision will change that result.
  Second, the legislation will extend the special computer deduction 
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. Nonprofits such as Computers for Youth in 
New York City have placed computers into the homes of hundreds of low-
income families. We need to encourage similar efforts by nonprofits 
across the country. Only then can we make our mutual goal of bringing 
technology into every home in America a reality.
  Finally, 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 cost of computers and 
Internet access are dropping, the cost of computers still remains a 
barrier for many low-income working families. Returning half of the 
cost of the computers to these families will go a long way towards 
helping working families help themselves and provide a brighter future 
for their children.

                              {time}  2015

  In fact, the $500 refundable tax credit makes computers more 
affordable than ever for the working poor. Here is an example. In the 
June 17 edition of The Washington Post, which I have an example of 
here, Circuit City advertized a Pentium II computer for $1,099. The 
price is slashed by the manufacturer and retail rebates to $499. With 
this $500 tax credit, the actual cost of that computer would be reduced 
to nothing, a free computer to a poor family. Computer companies and 
retailers will get business from a segment of the population that did 
not have affordable access before, and the working poor will receive 
affordable access. It is a win-win situation.
  Mr. Speaker, bringing technology to all our children is key to our 
Nation's future and prosperity. I implore my colleagues to recognize 
the long-term negative impact that could result from not eliminating 
the digital divide and urge their support of this legislation. 
Together, we can ensure a much brighter tomorrow for our children and 
give them the tools necessary to compete and lead the next generation 
to an even brighter future.

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