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H.R. 4169 (104th): To amend the Internal Revenue Code of 1986 to provide that all computer software shall be depreciable over 24 months.


The text of the bill below is as of Sep 25, 1996 (Introduced). The bill was not enacted into law.


HR 4169 IH

104th CONGRESS

2d Session

H. R. 4169

To amend the Internal Revenue Code of 1986 to provide that all computer software shall be depreciable over 24 months.

IN THE HOUSE OF REPRESENTATIVES

September 25, 1996

Mr. BAKER of California (for himself, Mr. WHITE, and Mr. CAMPBELL) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to provide that all computer software shall be depreciable over 24 months.

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

SECTION 1. DEPRECIATION OF COMPUTER SOFTWARE.

    (a) IN GENERAL- Paragraph (1) of section 167(f) of the Internal Revenue Code of 1986 (relating to treatment of certain property excluded from section 197) is amended to read as follows:

      ‘(1) COMPUTER SOFTWARE- If a depreciation deduction is allowable under subsection (a) with respect to any computer software (as defined in section 197(e)(3)(B)), such deduction shall be computed--

        ‘(A) by using a useful life of 24 months, and

        ‘(B) by using the straight line method; except that--

          ‘(i) 70 percent of the adjusted basis of such software as of the beginning of such 24 months shall be allowed as a deduction under such method over the first 12 months of such period, and

          ‘(ii) the remainder of such basis shall be allowed as a deduction under such method over the second 12 months of such period.’

    (b) EXCEPTION FROM INTANGIBLE AMORTIZATION FOR ALL COMPUTER SOFTWARE- Subparagraph (A) of section 197(e)(3) of such Code is amended to read as follows:

        ‘(A) IN GENERAL- Any computer software.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to property acquired after the date of the enactment of this Act.