I

106TH CONGRESS

2D SESSION H. R. 5616

To amend the Internal Revenue Code of 1986 to allow a deduction to

taxpayers who purchase and install qualified security devices.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 1, 2000

Mr. CROWLEY 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 a

deduction to taxpayers who purchase and install qualified

security devices.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. DEDUCTION FOR PURCHASE AND INSTALLA4 TION OF SECURITY DEVICES.

5 (a) IN GENERAL.—Part VI of subchapter B of chap6 ter 1 of the Internal Revenue Code of 1986 (relating to

7 itemized deductions for individuals and corporations) is

8 amended by adding at the end the following new section:
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1 ‘‘SEC. 199. SECURITY DEVICE PURCHASES.

2 ‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be

3 allowed as a deduction for the taxable year an amount

4 equal to 100 percent of the amount paid by the taxpayer

5 for the purchase of a qualifying security device.

6 ‘‘(b) MAXIMUM DEDUCTION.—The deduction allowed

7 by subsection (a) for the taxable year shall not exceed

8 $5,000.

9 ‘‘(c) DEFINITIONS.—

10 ‘‘(1) QUALIFYING SECURITY DEVICE.—The

11 term ‘qualifying security device’ means a security

12 device that is installed or placed in service in a

13 building or residence all or a portion of which is

14 owned or occupied by the taxpayer in the United

15 States.

16 ‘‘(2) SECURITY DEVICE.—The term ‘security

17 device’ means any of the following:

18 ‘‘(A) An electronic access control device or

19 other similar alarms or devices.

20 ‘‘(B) Closed-circuit television or other sur21 veillance and security cameras and equipment.

22 ‘‘(C) Biometric controls, including auto23 mated fingerprint identification systems.

24 ‘‘(D) Locks for doors and windows, includ25 ing tumbler, key, and numerical or other coded

26 devices.
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1 ‘‘(E) Components, wiring, system displays,

2 terminals, auxiliary power supplies and other

3 equipment necessary or incidental to the oper4 ation of any item described in subparagraph

5 (A), (B), (C), or (D).

6 ‘‘(3) BUILDING.—The term ‘building’ includes

7 any structure or part of a structure used for com8 mercial, retail, or business purposes.

9 ‘‘(4) RESIDENCE.—The term ‘residence’ means

10 any home, condominium, cooperative unit, boat, or

11 trailer used as a dwelling by the taxpayer.

12 ‘‘(d) BASIS REDUCTION.—For purposes of this sub13 title, if a deduction is allowed under this section with re14 spect to the purchase of a qualifying security device, the

15 basis of such device shall be reduced by the amount of

16 the deduction so allowed.’’.

17 (b) CONFORMING AND CLERICAL AMENDMENTS.—

18 (1) Section 1016(a) of such Code (relating to

19 adjustments to basis) is amended by striking ‘‘and’’

20 at the end of paragraph (26), by striking the period

21 and inserting ‘‘, and’’ at the end of paragraph (27),

22 and by adding at the end the following new para23 graph:

24 ‘‘(28) to the extent provided in section 199.’’.
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1 (2) The table of sections for part VI of sub2 chapter B of chapter 1 of such Code is amended by

3 adding at the end the following new item:

‘‘199. Security device purchases.’’.

4 SEC. 2. EFFECTIVE DATE.

5 The amendments made by this Act shall apply to tax6 able years beginning after December 31, 2000.

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