II

106TH CONGRESS

2D SESSION S. 2701

To amend the Internal Revenue Code of 1986 to allow a tax credit for

donations of computers to senior centers, to require a pilot program

to enhance the availability of Internet access for older Americans, and

for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 8, 2000

Mr. WYDEN (for himself, Mr. DEWINE, and Mr. ROCKEFELLER) introduced

the following bill; which was read twice and referred to the Committee

on Finance

A BILL

To amend the Internal Revenue Code of 1986 to allow a

tax credit for donations of computers to senior centers,

to require a pilot program to enhance the availability

of Internet access for older Americans, and for other

purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Internet Access for

5 Seniors Act of 2000’’.
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1 SEC. 2. CREDIT FOR COMPUTER DONATIONS TO SENIOR

2 CENTERS.

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of

5 1986 (relating to business related credits) is amended by

6 adding at the end the following:

7 ‘‘SEC. 45D. CREDIT FOR COMPUTER DONATIONS TO SENIOR

8 CENTERS.

9 ‘‘(a) GENERAL RULE.—For purposes of section 38,

10 the computer donation credit determined under this sec11 tion is an amount equal to 30 percent of the qualified com12 puter contributions made by the taxpayer during the tax13 able year as determined after the application of section

14 170(e)(6)(A).

15 ‘‘(b) QUALIFIED COMPUTER CONTRIBUTION.—For

16 purposes of this section—

17 ‘‘(1) IN GENERAL.—The term ‘qualified com18 puter contribution’ has the meaning given the term

19 ‘qualified elementary or secondary educational con20 tribution’ by section 170(e)(6)(B), except that—

21 ‘‘(A) clause (ii) of such section shall be ap22 plied by substituting ‘3 years’ for ‘2 years’,

23 ‘‘(B) clause (iii) of such section shall be

24 applied by inserting ‘, the person from whom

25 the donor reacquires the property,’ after ‘the

26 donor’, and
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1 ‘‘(C) notwithstanding clauses (i) and (iv)

2 of such section, such term shall include the con3 tribution of computer technology or equipment

4 to eligible senior centers to be used by individ5 uals who have attained 60 years of age to im6 prove job skills in computers.

7 ‘‘(2) ELIGIBLE SENIOR CENTER.—

8 ‘‘(A) IN GENERAL.—The term ‘eligible sen9 ior center’ means any facility which is eligible—

10 ‘‘(i) to receive funding as a senior cen11 ter under title III of the Older Americans

12 Act of 1965 (42 U.S.C. 3021 et seq.), and

13 ‘‘(ii) to receive the qualified computer

14 contribution as determined under subpara15 graph (B).

16 ‘‘(B) ELIGIBILITY TO RECEIVE CONTRIBU17 TION.—For purposes of subparagraph (A)(ii), a

18 senior center is eligible to receive a qualified

19 computer contribution in any calendar year if

20 such contribution when added to all preceding

21 qualified computer contributions for such year

22 does not result in such center receiving more

23 than 10 computers through such contributions.

24 ‘‘(c) INCREASED PERCENTAGE FOR CONTRIBUTIONS

25 TO ENTITIES IN EMPOWERMENT ZONES, ENTERPRISE
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1 COMMUNITIES, AND INDIAN RESERVATIONS.—In the case

2 of a qualified computer contribution to an entity located

3 in an empowerment zone or enterprise community des4 ignated under section 1391 or an Indian reservation (as

5 defined in section 168(j)(6)), subsection (a) shall be ap6 plied by substituting ‘50 percent’ for ‘30 percent’.

7 ‘‘(d) CERTAIN RULES MADE APPLICABLE.—For pur8 poses of this section, rules similar to the rules of para9 graphs (1) and (2) of section 41(f) shall apply.

10 ‘‘(e) TERMINATION.—This section shall not apply to

11 taxable years beginning on or after the date which is 3

12 years after the date of the enactment of the Internet Ac13 cess for Seniors Act of 2000.’’.

14 (b) CURRENT YEAR BUSINESS CREDIT CALCULA15 TION.—Section 38(b) of the Internal Revenue Code of

16 1986 (relating to current year business credit) is amended

17 by striking ‘‘plus’’ at the end of paragraph (11), by strik18 ing the period at the end of paragraph (12) and inserting

19 ‘‘, plus’’, and by adding at the end the following:

20 ‘‘(13) the computer donation credit determined

21 under section 45D(a).’’.

22 (c) DISALLOWANCE OF DEDUCTION BY AMOUNT OF

23 CREDIT.—Section 280C of the Internal Revenue Code of

24 1986 (relating to certain expenses for which credits are

25 allowable) is amended by adding at the end the following:
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1 ‘‘(d) CREDIT FOR COMPUTER DONATIONS.—No de2 duction shall be allowed for that portion of the qualified

3 computer contributions (as defined in section 45D(b))

4 made during the taxable year that is equal to the amount

5 of credit determined for the taxable year under section

6 45D(a). In the case of a corporation which is a member

7 of a controlled group of corporations (within the meaning

8 of section 52(a)) or a trade or business which is treated

9 as being under common control with other trades or busi10 nesses (within the meaning of section 52(b)), this sub11 section shall be applied under rules prescribed by the Sec12 retary similar to the rules applicable under subsections (a)

13 and (b) of section 52.’’.

14 (d) LIMITATION ON CARRYBACK.—Subsection (d) of

15 section 39 of the Internal Revenue Code of 1986 (relating

16 to carryback and carryforward of unused credits) is

17 amended by adding at the end the following:

18 ‘‘(9) NO CARRYBACK OF COMPUTER DONATION

19 CREDIT BEFORE EFFECTIVE DATE.—No amount of

20 unused business credit available under section 45D

21 may be carried back to a taxable year beginning on

22 or before the date of the enactment of this para23 graph.’’.

24 (e) CLERICAL AMENDMENT.—The table of sections

25 for subpart D of part IV of subchapter A of chapter 1
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1 of the Internal Revenue Code of 1986 is amended by in2 serting after the item relating to section 45C the following:

‘‘Sec. 45D. Credit for computer donations to senior centers.’’.

3 (f) EFFECTIVE DATE.—The amendments made by

4 this section shall apply to contributions made in taxable

5 years beginning after the date of the enactment of this

6 Act.

7 SEC. 3. PILOT PROGRAM FOR ENHANCED INTERNET AC8 CESS FOR OLDER AMERICANS.

9 (a) REQUIREMENT.—

10 (1) IN GENERAL.—The Secretary of Commerce

11 shall, in consultation with the Secretary of Health

12 and Human Services, carry out a pilot program to

13 enhance the availability of Internet access for older

14 Americans. The pilot program shall meet the re15 quirements of this section.

16 (2) DISCHARGE OF RESPONSIBILITIES.—The

17 Secretary of Commerce shall carry out the pilot pro18 gram through the Assistant Secretary of Commerce

19 for Communications and Information, and the Sec20 retary of Health and Human Services shall consult

21 with the Secretary of Commerce under the pilot pro22 gram through the Assistant Secretary for Aging of

23 the Department of Health and Human Services.

24 (b) PARTICIPATION OF SENIOR CENTERS.—
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1 (1) IN GENERAL.—The Secretary of Commerce

2 shall select senior centers for participation in the

3 pilot program under this section from among senior

4 centers.

5 (2) APPLICATION.—

6 (A) IN GENERAL.—Except as provided in

7 subparagraph (B), each senior center seeking to

8 participate in the pilot program shall submit to

9 the Secretary an application for participation in

10 the pilot program containing such information

11 as the Secretary shall require.

12 (B) APPLICATIONS FOR SEVERAL CEN13 TERS.—An entity consisting of or operating two

14 or more senior centers may submit a single ap15 plication under this paragraph on behalf of

16 such senior centers that seek to participate in

17 the pilot program.

18 (3) SELECTION OF SENIOR CENTERS.—In se19 lecting a senior center for participation in the pilot

20 program, the Secretary take into account the fol21 lowing:

22 (A) The extent to which the senior center

23 already provides Internet access for older indi24 viduals.
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1 (B) The extent to which the senior center

2 serves an area with a high percentage of low3 income older individuals, a rural area, or both

4 such areas.

5 (C) The number of older individuals who

6 will be provided Internet access as a result of

7 the participation of the senior center in the

8 pilot program.

9 (D) The extent to which the participation

10 of the senior center in the pilot program will re11 sult in the receipt by older individuals of health

12 or education information or job training

13 through the Internet.

14 (c) GRANTS.—

15 (1) IN GENERAL.—

16 (A) IN GENERAL.—The Secretary of Com17 merce shall make grants to senior centers se18 lected by the Secretary under subsection (b) for

19 participation in the pilot program under this

20 section.

21 (B) RECIPIENT OF CERTAIN GRANTS.—If

22 the senior centers selected by the Secretary in23 clude senior centers covered by an application

24 under subsection (b)(2)(B), the Secretary shall

25 make the grant to such centers as a single
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1 grant through the entity submitting the applica2 tion under that subsection.

3 (2) AMOUNT OF GRANTS.—

4 (A) IN GENERAL.—Subject to subpara5 graphs (B) and (C), the Secretary shall deter6 mine the amount of the grant to be made to

7 each senior center selected to participate in the

8 pilot program.

9 (B) LARGER AMOUNTS FOR CERTAIN CEN10 TERS.—The Secretary shall, to the maximum

11 extent practicable, make grants in larger

12 amounts to senior centers selected to partici13 pate in the pilot program that serve areas with

14 a high percentage of low-income older individ15 uals, rural areas, or both such areas.

16 (C) ANNUAL LIMIT.—The amount of the

17 grant made to a given senior center in any year

18 may not exceed $25,000.

19 (d) USE OF GRANT AMOUNTS.—

20 (1) IN GENERAL.—A senior center receiving a

21 grant under the pilot program under this section

22 shall use the amount of the grant to cover or defray

23 the costs of the senior center in making available

24 Internet access to or for older individuals at or

25 through the facilities of the senior center, including
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1 costs relating to telecommunications services, Inter2 net access, internal connections, computers, input

3 and output devices, software, training, and oper4 ations and maintenance.

5 (2) LIMITATION ON PERCENTAGE OF COSTS

6 COVERED BY GRANT.—

7 (A) IN GENERAL.—The Secretary shall

8 specify in each grant to a senior center selected

9 to participate in the pilot program the max10 imum percentage of the costs of the senior cen11 ter that may be covered or defrayed by such

12 grant.

13 (B) HIGHER PERCENTAGE FOR CERTAIN

14 CENTERS.—In specifying maximum percentages

15 under this paragraph, the Secretary shall, to

16 the maximum extent practicable, specify higher

17 percentages for senior centers serving areas

18 with a high percentage of low-income older indi19 viduals, rural areas, or both such areas.

20 (C) MAXIMUM PERCENTAGE.—The highest

21 maximum percentage that may be specified by

22 the Secretary under this paragraph shall be 90

23 percent.

24 (3) ADDITIONAL LIMITATION ON USE OF

25 FUNDS.—Amounts received by a senior center under
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1 a grant under subsection (c) may not be used for

2 any administrative purpose unless such purpose re3 lates directly to the participation of the senior center

4 in the pilot program under this section.

5 (e) DURATION.—

6 (1) COMMENCEMENT.—The Secretary of Com7 merce shall commence the pilot program under this

8 section as soon as practicable after the date of the

9 enactment of this Act.

10 (2) TERMINATION.—The Secretary may not

11 make any grant under the pilot program after the

12 date that is three years after the commencement of

13 the pilot program under paragraph (1).

14 (f) REPORT.—

15 (1) REQUIREMENT.—Not later than two years

16 after the commencement of the pilot program under

17 subsection (e)(1), the Secretary of Commerce shall

18 submit to Congress a report on the pilot program.

19 (2) ELEMENTS.—The report under paragraph

20 (1) shall set forth the following:

21 (A) An estimate of the cost per senior cen22 ter of making available Internet access to or for

23 older individuals at or through senior centers in

24 rural areas and in non-rural areas, including a

25 separate estimate of the cost of—
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1 (i) purchasing computers and associ2 ated hardware;

3 (ii) purchasing software;

4 (iii) purchasing and installing internal

5 connections;

6 (iv) subscribing to Internet and tele7 communications services at narrowband

8 data rates; and

9 (v) operating and maintaining the sys10 tems which provide such access.

11 (B) An assessment of the extent to which

12 computers and Internet access are currently

13 available to or for older individuals at or

14 through senior centers in the United States,

15 including—

16 (i) a comparison of the availability of

17 computers and Internet access at or

18 though senior centers in rural areas with

19 the availability of computers and Internet

20 access at or through senior centers in non21 rural areas; and

22 (ii) a comparison of the availability of

23 computers and Internet access at or

24 through senior centers that serve a high

25 percentage of low-income older individuals
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1 with the availability of computers and

2 Internet access at or through senior cen3 ters that do not serve a high percentage of

4 low-income older individuals.

5 (C) A proposal for a program to provide

6 additional subsidies or assistance to enhance

7 the availability of Internet access to or for older

8 individuals, under which program—

9 (i) all senior centers would be eligible

10 for such subsidies or assistance; and

11 (ii) priority would be given in the pro12 vision of such subsidies or assistance to

13 senior centers that serve a high percentage

14 of low-income older individuals or are lo15 cated in rural areas.

16 (D) An estimate of the annual cost of the

17 program proposed under subparagraph (C).

18 (g) DEFINITIONS.—In this section:

19 (1) LOW-INCOME OLDER INDIVIDUAL.—The

20 term ‘‘low-income older individual’’ means an older

21 individual whose income level is at or below the pov22 erty line (as that term is defined in section 102(41)

23 of the Older Americans Act of 1965 (42 U.S.C.

24 3002(41)).
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1 (2) OLDER INDIVIDUAL.—The term ‘‘older indi2 vidual’’ has the meaning given that term in section

3 102(38) of the Older Americans Act of 1965 (42

4 U.S.C. 3002(38)).

5 (3) SENIOR CENTER.—The term ‘‘senior cen6 ter’’ means any facility that is eligible to receive

7 funding as a senior center under title III of the

8 Older Americans Act of 1965 (42 U.S.C. 3021 et

9 seq.).

10 (h) AUTHORIZATION OF APPROPRIATIONS.—

11 (1) AUTHORIZATION OF APPROPRIATIONS.—

12 There is hereby authorized to be appropriated

13 $30,000,000 for purposes of the pilot program re14 quired by this section.

15 (2) AVAILABILITY.—Amounts appropriated pur16 suant to the authorization of appropriations in para17 graph (1) shall remain available until expended.

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