[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1153 Introduced in House (IH)]
105th CONGRESS
1st Session
H. R. 1153
To amend the Internal Revenue Code of 1986 to enhance the incentive for
contributions of computer technology and equipment for elementary or
secondary school purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 20, 1997
Mr. Cunningham (for himself, Mr. Lewis of California, Mr. Hunter, Mr.
Weldon of Pennsylvania, Mr. Shays, Mr. Gillmor, Mr. Greenwood, Ms.
Pryce of Ohio, Mr. Filner, Mr. Bilbray, Mr. English of Pennsylvania,
Mr. Foley, Mr. Fox of Pennsylvania, Ms. Lofgren, Mr. Norwood, Mr.
Wicker, Mr. Cook, and Mr. Gibbons) 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 enhance the incentive for
contributions of computer technology and equipment for elementary or
secondary school purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``21st Century Classrooms Act for
Private Technology Investment''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) The General Accounting Office reported in 1995 that
``America's schools are not designed or equipped for the 21st
Century'';
(2) an excellent education that provides American children
with a fighting chance at the American Dream includes rigorous
academic basic instruction, plus technological literacy and
proficiency in working with computers;
(3) by the year 2000, 60 percent of American jobs will
require technology skills; thus, without early training in
technological literacy, many of our future leaders will start
their adult lives at a severe economic disadvantage;
(4) while America's classrooms are supported by dedicated
teachers, involved families, and bright young children, many of
our Nation's classrooms lack the important technological
resources that they need to prepare both teachers and students
for a technologically advanced present and future;
(5) advanced technology has improved America's economic
competitiveness, transformed commerce and communications, and
improved the quality of life of millions of Americans, but it
has not yet made as transforming an impact on the way schools
educate children;
(6) the Internet and the World Wide Web are revolutionizing
the way individuals and organizations share and find
information, yet only 14 percent of our classrooms have a
telephone jack, and about 1 in 50 are connected to the
Internet; furthermore, the most common computer in our Nation's
schools is the Apple 2c, introduced over a decade ago and now
on display at the Smithsonian Institution; and while 50 percent
of schools have local area computer networks (LANs), less than
10 percent of those networks connect with computers in
classrooms;
(7) therefore, bringing America's classrooms into the 21st
Century requires a major national investment in technology,
including computers, software, and interactive
interconnectivity;
(8) the sums required to bring our classrooms into the 21st
Century extend into the tens of billions of dollars;
(9) Congress has authorized and funded several programs
which invest in education technology; however, because of the
immense scale of the need, and because primary and secondary
education are primarily a local and State responsibility,
bringing our classrooms into the 21st Century is best done in a
manner that does not increase Federal Government expenditures
or bureaucracy and keeps control as close as possible to the
children and teachers who will benefit; and
(10) many businesses invest their time and resources into
classrooms; but the tremendous need for additional computer
equipment and software in our classrooms, plus the wave of
computer upgrades taking place among businesses in the United
States, argue persuasively for an additional financial
incentive to encourage businesses to invest their equipment
into 21st Century classrooms.
(b) Purpose.--The purpose of this Act is to direct the innovation
and energy of private enterprise to the education of our young people,
expand technological literacy, and bring the education of our young
people into the 21st Century.
SEC. 3. CONTRIBUTIONS FOR COMPUTER TECHNOLOGY AND EQUIPMENT FOR
ELEMENTARY OR SECONDARY SCHOOL PURPOSES.
(a) Contributions of Computer Technology and Equipment for
Elementary or Secondary School Purposes.--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 technology
and equipment for elementary or secondary school purposes.--
``(A) Limit on reduction.--In the case of a
qualified elementary or secondary educational
contribution, the reduction under paragraph (1)(A)
shall be no greater than the amount determined under
paragraph (3)(B).
``(B) Qualified elementary or secondary educational
contribution.--For purposes of this paragraph, the term
`qualified elementary or secondary educational
contribution' means a charitable contribution by a
corporation of any computer technology or equipment,
but only if--
``(i) the contribution is to--
``(I) an educational organization
described in subsection (b)(1)(A)(ii),
or
``(II) an entity described in
section 501(c)(3) and exempt from tax
under section 501(a) (other than an
entity described in subclause (I)) that
is organized primarily for purposes of
supporting elementary and secondary
education,
``(ii) the contribution is made not later
than 2 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 in any
of the grades K-12 that are related to the
purpose or function of the organization or
entity,
``(iv) the property is not transferred by
the donee in exchange for money, other
property, or services, except for shipping,
installation and transfer costs,
``(v) the property will fit productively
into the entity's education plan, and
``(vi) the entity's use and disposition of
the property will be in accordance with the
provisions of clauses (iii) and (iv).
``(C) Contribution to private foundation.--A
contribution by a corporation of any computer
technology or equipment to a private foundation (as defined in section
509) shall be treated as a qualified elementary or secondary
educational contribution for purposes of this paragraph if--
``(i) the contribution to the private
foundation satisfies the requirements of
clauses (ii) and (iv) of subparagraph (B), and
``(ii) within 30 days after such
contribution, the private foundation--
``(I) contributes the property to
an entity described in clause (i) of
subparagraph (B) that satisfies the
requirements of clauses (iii) through
(vi) of subparagraph (B), and
``(II) notifies the donor of such
contribution.
``(D) Special rule relating to construction of
property.--For the purposes of this paragraph,
paragraph (4)(C) shall apply.
``(E) Definitions.--For the purposes of this
paragraph--
``(i) Computer technology or equipment.--
The term `computer technology or equipment'
means computer software (as defined by section
197(e)(3)(B)), computer or peripheral equipment
(as defined by section 168(i)(2)(B)), and fiber
optic cable related to computer use.
``(ii) Corporation.--The term `corporation'
has the meaning given to such term by paragraph
(4)(D).''
(b) Contributions of Cash for Computer Technology and Equipment for
Elementary or Secondary School Purposes.--Subsection (a) of section 170
of such Code is amended by adding at the end the following new
paragraph:
``(4) In the case of a corporation, the amount of each
charitable contribution of cash to an organization or entity
described in subsection (e)(6)(B)(i) to be used by such
organization or entity for the purpose of acquiring computer
technology or equipment (as defined in subsection (e)(6)(E)(i))
shall be treated for purposes of this section as being equal to
110 percent of the amount of such contribution which (but for
this sentence) would otherwise be taken into account under this
section.''
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the calendar year in which this
Act is enacted.
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