H.R. 1478 (105th): To amend the Internal Revenue Code of 1986 to allow companies to donate computer equipment and software, ...

...and training related thereto, to elementary and secondary schools for use in their educational programs, and for other purposes.

105th Congress, 1997–1998. Text as of Apr 29, 1997 (Introduced).

Status & Summary | PDF | Source: GPO

HR 1478 IH

105th CONGRESS

1st Session

H. R. 1478

To amend the Internal Revenue Code of 1986 to allow companies to donate computer equipment and software, and training related thereto, to elementary and secondary schools for use in their educational programs, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

April 29, 1997

Ms. ESHOO (for herself, Ms. STABENOW, Mr. FROST, Ms. LOFGREN, Mr. BOUCHER, Mr. CANADY of Florida, Mr. BROWN of California, Mr. DELLUMS, Ms. PELOSI, Mr. FILNER, Ms. RIVERS, Mrs. LOWEY, Mrs. MALONEY of New York, Mr. LAMPSON, Mr. STUPAK, Mr. BONIOR, Mr. SANDLIN, Mr. FORD, Mr. TURNER, Ms. KILPATRICK, Mr. CLEMENT, Mr. UNDERWOOD, Mrs. THURMAN, Mr. DOYLE, Mr. MOAKLEY, Mr. LEWIS of Georgia, Mr. FATTAH, Mr. WEYGAND, Mr. MCGOVERN, Mr. RANGEL, Mr. UPTON, Mrs. EMERSON, Mr. LEVIN, Mrs. KENNELLY of Connecticut, and Ms. HOOLEY of Oregon) 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 allow companies to donate computer equipment and software, and training related thereto, to elementary and secondary schools for use in their educational programs, and for other purposes.

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

SECTION 1. CHARITABLE CONTRIBUTIONS OF COMPUTER EQUIPMENT AND SOFTWARE TO ELEMENTARY AND SECONDARY SCHOOLS AND TO QUALIFIED ORGANIZATIONS PROVIDING ASSISTANCE TO INDIVIDUALS WITH DISABILITIES.

    (a) IN GENERAL- Subsection (e) of section 170 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

      ‘(6) SPECIAL RULE FOR CONTRIBUTIONS OF COMPUTER EQUIPMENT AND SOFTWARE USED FOR EDUCATIONAL PURPOSES-

        ‘(A) LIMIT ON REDUCTION- In the case of a qualified educational contribution, the reduction under paragraph (1)(A) shall be no greater than the amount determined under paragraph (3)(B).

        ‘(B) QUALIFIED EDUCATIONAL CONTRIBUTION- For purposes of this paragraph, the term ‘qualified educational contribution’ means a charitable contribution by a corporation of any computer software or computer or peripheral equipment, but only if--

          ‘(i) the contribution is to--

            ‘(I) an educational organization described in subsection (b)(1)(A)(ii),

            ‘(II) a governmental unit described in subsection (c)(1), or

            ‘(III) an organization described in section 501(c)(3) and exempt from taxation under section 501(a), or a governmental unit described in subsection (c)(1), that has documented experience and expertise at the community level in providing training and evaluation for information technology services and devices to individuals with disabilities, their parents, family members, guardians, advocates, or authorized representatives,

          ‘(ii) the contribution is made not later than 3 years after the date the taxpayer acquired the property (or in the case of property constructed by the taxpayer, the date the construction of the property is substantially completed),

          ‘(iii) substantially all of the use of the property by the donee is for use within the United States for educational purposes related to the purpose or function of the organization or unit,

          ‘(iv) the original use of the property began with--

            ‘(I) the donee, in the case of property constructed by the taxpayer or property of the taxpayer described in section 1221(1), or

            ‘(II) the taxpayer, in any case not described in subclause (I),

          ‘(v) the property is not transferred by the donee in exchange for money, other property, or services, and

          ‘(vi) the taxpayer receives from the donee a written statement representing that its use and disposition of the property will be in accordance with the provisions of clauses (iii) and (v).

        ‘(C) DONATIONS TO CHARITY FOR REFURBISHING-

          ‘(i) IN GENERAL- For purposes of this paragraph, a charitable contribution by a corporation shall be treated as a qualified education contribution if--

            ‘(I) such contribution is a contribution of any computer or peripheral equipment to a qualified organization, and

            ‘(II) the taxpayer receives from such organization a written statement representing that its use of the property (and any use by the organization or unit to which it donates the property) meets the needs of the donee and the requirements of clause (v) of subparagraph (B).

          ‘(ii) QUALIFIED ORGANIZATION- For purposes of clause (i), an organization is a qualified organization if--

            ‘(I) the organization is described in section 501(c)(3) and exempt from taxation under section 501(a), and

            ‘(II) a substantial part of the business of the organization is the repair and refurbishment of computers or peripheral equipment and the donation of such equipment to an organization or unit described in subparagraph (B)(i) for a purpose described in subparagraph (B)(iii).

        ‘(D) SPECIAL RULES- For the purposes of this paragraph--

          ‘(i) CONSTRUCTION OF PROPERTY BY TAXPAYER- Paragraph (4)(C) shall apply.

          ‘(ii) REFURBISHMENT OF PROPERTY BY TAXPAYER- Property that is substantially refurbished by the taxpayer shall be treated as property constructed by the taxpayer.

        ‘(E) DEFINITIONS- For the purposes of this paragraph--

          ‘(i) COMPUTER OR PERIPHERAL EQUIPMENT- The term ‘computer or peripheral equipment’ has the meaning given such term by section 168(i)(2)(B).

          ‘(ii) COMPUTER SOFTWARE- The term ‘computer software’ has the meaning given such term by section 197(e)(3)(B).

          ‘(iii) EDUCATIONAL PURPOSE- The term ‘educational purpose’ includes administration incident to providing education.

          ‘(iv) DISABILITY- The term ‘disability’ has the meaning given such term by section 3(2) of the Americans with Disabilities Act of 1990.

          ‘(v) INFORMATION TECHNOLOGY- The term ‘information technology’ includes any computer or peripheral equipment, computer software, digital augmentative speech device, firmware, and services related thereto.

          ‘(vi) CORPORATION- The term ‘corporation’ has the meaning given such term by paragraph (4)(D).’

    (b) COMPUTER TRAINING- Section 170 of such Code is amended by adding at the end the following new subsection:

    ‘(n) COMPUTER TRAINING-

      ‘(1) IN GENERAL- For purposes of this section, the term ‘charitable contribution’ includes a contribution by a corporation of qualified computer training.

      ‘(2) QUALIFIED COMPUTER TRAINING-

        ‘(A) IN GENERAL- For purposes of paragraph (1), the term ‘qualified computer training’ means training--

          ‘(i) provided by the taxpayer in the use of computer software or any computer or peripheral equipment (as defined in subsection (e)(6)(E)) contributed to the donee by the taxpayer for a purpose described in subsection (e)(6)(B)(iii),

          ‘(ii) provided to an individual employed by an organization or unit described in subsection (e)(6)(B)(i), and

          ‘(iii) for which the taxpayer receives from the donee a written statement representing that the training is not in exchange for money, other property, or services.

        ‘(B) TIME LIMITATION- Not more than 8 hours of training may be taken into account under subparagraph (A) with respect to each contribution.

        ‘(C) VALUATION- For the purpose of this subsection, the value of the time of an individual who provides computer training shall be based on the usual wage rate of the individual.’

    (c) CONTRIBUTION OF DIGITAL AUGMENTATIVE SPEECH DEVICES FOR USE BY INDIVIDUALS WITH DISABILITIES- Subsection (e) of section 170 of the Internal Revenue Code of 1986, as amended by subsection (a) of this section, is further amended by adding at the end the following new paragraph:

      ‘(7) SPECIAL RULE FOR CONTRIBUTIONS OF DIGITAL AUGMENTATIVE SPEECH DEVICES-

        ‘(A) LIMIT ON REDUCTION- In the case of a contribution or gift of a digital augmentative speech device to an entity described in subparagraph (B)--

          ‘(i) the reduction under paragraph (1)(A) shall be no greater than the amount determined under paragraph (3)(B), and

          ‘(ii) qualified training in the use of such device shall be treated as a charitable contribution for purposes of this section.

        ‘(B) ENTITY DESCRIBED- An entity is described in this subparagraph if the entity is--

          ‘(i) described in section 501(c)(3) and exempt from taxation under section 501(a), or

          ‘(ii) a governmental unit described in subsection (c)(1),

        that has documented experience and expertise at the community level in providing training and evaluation for information technology services and devices to individuals with disabilities, their parents, family members, guardians, advocates, or authorized representatives.

        ‘(C) QUALIFIED TRAINING-

          ‘(i) IN GENERAL- The term ‘qualified training’ means training in the use of a digital augmentative speech device contributed by the taxpayer under subparagraph (A) to an entity described in subparagraph (B) that is --

            ‘(I) provided by the taxpayer,

            ‘(II) provided to an individual employed by such entity, and

            ‘(III) for which the taxpayer receives from the donee a written statement representing that the training meets the requirements of subparagraph (D).

        ‘(D) LIMITATIONS-

          ‘(i) EXCHANGE FOR MONEY, ETC- Subparagraph (A) shall not apply to property or training donated under this paragraph if such property is transferred by the donee in exchange for money, other property, or services.

          ‘(ii) TIME AND VALUATION- Subparagraphs (B) and (C) of paragraph (6) shall apply to training subject to this subparagraph.

        ‘(E) DEFINITIONS- For purposes of this paragraph, the terms ‘disability’ and ‘information technology’ have the meaning given such terms by subsection (e)(6)(E).’

    (d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1996.

SEC. 2. REPORT ON EFFECTIVENESS OF CHARITABLE CONTRIBUTIONS OF COMPUTERS AND SOFTWARE IN MEETING EDUCATIONAL NEEDS OF STUDENTS.

    Not later than December 31, 1998, the Comptroller General of the United States shall conduct a study on the effectiveness of the enhanced charitable contribution under section 170(e)(6) of the Internal Revenue Code of 1986 (as amended by section 1 of this Act) in meeting educational needs of students in the United States. The Comptroller General shall submit the report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

SEC. 3. DONATIONS TO UNDERPRIVILEGED SCHOOLS.

    It is the sense of Congress that one of the main purposes of the enhanced charitable deduction under section 170(e)(6) of the Internal Revenue Code of 1986 (as amended by section 1 of this Act) is to encourage the donation of computer equipment and software to--

      (1) schools serving low income communities;

      (2) schools whose fiscal year budgets are below the applicable State-wide norm; and

      (3) schools at which student test scores are substantially below the State-wide norm.