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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2701 Introduced in Senate (IS)]

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.

    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 ``Internet Access for Seniors Act of 
2000''.

SEC. 2. CREDIT FOR COMPUTER DONATIONS TO SENIOR CENTERS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following:

``SEC. 45D. CREDIT FOR COMPUTER DONATIONS TO SENIOR CENTERS.

    ``(a) General Rule.--For purposes of section 38, the computer 
donation credit determined under this section is an amount equal to 30 
percent of the qualified computer contributions made by the taxpayer 
during the taxable year as determined after the application of section 
170(e)(6)(A).
    ``(b) Qualified Computer Contribution.--For purposes of this 
section--
            ``(1) In general.--The term `qualified computer 
        contribution' has the meaning given the term `qualified 
        elementary or secondary educational contribution' by section 
        170(e)(6)(B), except that--
                    ``(A) clause (ii) of such section shall be applied 
                by substituting `3 years' for `2 years',
                    ``(B) clause (iii) of such section shall be applied 
                by inserting `, the person from whom the donor 
                reacquires the property,' after `the donor', and
                    ``(C) notwithstanding clauses (i) and (iv) of such 
                section, such term shall include the contribution of 
                computer technology or equipment to eligible senior 
                centers to be used by individuals who have attained 60 
                years of age to improve job skills in computers.
            ``(2) Eligible senior center.--
                    ``(A) In general.--The term `eligible senior 
                center' means any facility which is eligible--
                            ``(i) to receive funding as a senior center 
                        under title III of the Older Americans Act of 
                        1965 (42 U.S.C. 3021 et seq.), and
                            ``(ii) to receive the qualified computer 
                        contribution as determined under subparagraph 
                        (B).
                    ``(B) Eligibility to receive contribution.--For 
                purposes of subparagraph (A)(ii), a senior center is 
                eligible to receive a qualified computer contribution 
                in any calendar year if such contribution when added to 
                all preceding qualified computer contributions for such 
                year does not result in such center receiving more than 
                10 computers through such contributions.
    ``(c) Increased Percentage for Contributions to Entities in 
Empowerment Zones, Enterprise Communities, and Indian Reservations.--In 
the case of a qualified computer contribution to an entity located in 
an empowerment zone or enterprise community designated under section 
1391 or an Indian reservation (as defined in section 168(j)(6)), 
subsection (a) shall be applied by substituting `50 percent' for `30 
percent'.
    ``(d) Certain Rules Made Applicable.--For purposes of this section, 
rules similar to the rules of paragraphs (1) and (2) of section 41(f) 
shall apply.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning on or after the date which is 3 years after the date of the 
enactment of the Internet Access for Seniors Act of 2000.''.
    (b) Current Year Business Credit Calculation.--Section 38(b) of the 
Internal Revenue Code of 1986 (relating to current year business 
credit) is amended by striking ``plus'' at the end of paragraph (11), 
by striking the period at the end of paragraph (12) and inserting ``, 
plus'', and by adding at the end the following:
            ``(13) the computer donation credit determined under 
        section 45D(a).''.
    (c) Disallowance of Deduction by Amount of Credit.--Section 280C of 
the Internal Revenue Code of 1986 (relating to certain expenses for 
which credits are allowable) is amended by adding at the end the 
following:
    ``(d) Credit for Computer Donations.--No deduction shall be allowed 
for that portion of the qualified computer contributions (as defined in 
section 45D(b)) made during the taxable year that is equal to the 
amount of credit determined for the taxable year under section 45D(a). 
In the case of a corporation which is a member of a controlled group of 
corporations (within the meaning of section 52(a)) or a trade or 
business which is treated as being under common control with other 
trades or businesses (within the meaning of section 52(b)), this 
subsection shall be applied under rules prescribed by the Secretary 
similar to the rules applicable under subsections (a) and (b) of 
section 52.''.
    (d) Limitation on Carryback.--Subsection (d) of section 39 of the 
Internal Revenue Code of 1986 (relating to carryback and carryforward 
of unused credits) is amended by adding at the end the following:
            ``(9) No carryback of computer donation credit before 
        effective date.--No amount of unused business credit available 
        under section 45D may be carried back to a taxable year 
        beginning on or before the date of the enactment of this 
        paragraph.''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45C the 
following:

                              ``Sec. 45D. Credit for computer donations 
                                        to senior centers.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after the date 
of the enactment of this Act.

SEC. 3. PILOT PROGRAM FOR ENHANCED INTERNET ACCESS FOR OLDER AMERICANS.

    (a) Requirement.--
            (1) In general.--The Secretary of Commerce shall, in 
        consultation with the Secretary of Health and Human Services, 
        carry out a pilot program to enhance the availability of 
        Internet access for older Americans. The pilot program shall 
        meet the requirements of this section.
            (2) Discharge of responsibilities.--The Secretary of 
        Commerce shall carry out the pilot program through the 
        Assistant Secretary of Commerce for Communications and 
        Information, and the Secretary of Health and Human Services 
        shall consult with the Secretary of Commerce under the pilot 
        program through the Assistant Secretary for Aging of the 
        Department of Health and Human Services.
    (b) Participation of Senior Centers.--
            (1) In general.--The Secretary of Commerce shall select 
        senior centers for participation in the pilot program under 
        this section from among senior centers.
            (2) Application.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each senior center seeking to participate in the 
                pilot program shall submit to the Secretary an 
                application for participation in the pilot program 
                containing such information as the Secretary shall 
                require.
                    (B) Applications for several centers.--An entity 
                consisting of or operating two or more senior centers 
                may submit a single application under this paragraph on 
                behalf of such senior centers that seek to participate 
                in the pilot program.
            (3) Selection of senior centers.--In selecting a senior 
        center for participation in the pilot program, the Secretary 
        take into account the following:
                    (A) The extent to which the senior center already 
                provides Internet access for older individuals.
                    (B) The extent to which the senior center serves an 
                area with a high percentage of low-income older 
                individuals, a rural area, or both such areas.
                    (C) The number of older individuals who will be 
                provided Internet access as a result of the 
                participation of the senior center in the pilot 
                program.
                    (D) The extent to which the participation of the 
                senior center in the pilot program will result in the 
                receipt by older individuals of health or education 
                information or job training through the Internet.
    (c) Grants.--
            (1) In general.--
                    (A) In general.--The Secretary of Commerce shall 
                make grants to senior centers selected by the Secretary 
                under subsection (b) for participation in the pilot 
                program under this section.
                    (B) Recipient of certain grants.--If the senior 
                centers selected by the Secretary include senior 
                centers covered by an application under subsection 
                (b)(2)(B), the Secretary shall make the grant to such 
                centers as a single grant through the entity submitting 
                the application under that subsection.
            (2) Amount of grants.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), the Secretary shall determine the amount of the 
                grant to be made to each senior center selected to 
                participate in the pilot program.
                    (B) Larger amounts for certain centers.--The 
                Secretary shall, to the maximum extent practicable, 
                make grants in larger amounts to senior centers 
                selected to participate in the pilot program that serve 
                areas with a high percentage of low-income older 
                individuals, rural areas, or both such areas.
                    (C) Annual limit.--The amount of the grant made to 
                a given senior center in any year may not exceed 
                $25,000.
    (d) Use of Grant Amounts.--
            (1) In general.--A senior center receiving a grant under 
        the pilot program under this section shall use the amount of 
        the grant to cover or defray the costs of the senior center in 
        making available Internet access to or for older individuals at 
        or through the facilities of the senior center, including costs 
        relating to telecommunications services, Internet access, 
        internal connections, computers, input and output devices, 
        software, training, and operations and maintenance.
            (2) Limitation on percentage of costs covered by grant.--
                    (A) In general.--The Secretary shall specify in 
                each grant to a senior center selected to participate 
                in the pilot program the maximum percentage of the 
                costs of the senior center that may be covered or 
                defrayed by such grant.
                    (B) Higher percentage for certain centers.--In 
                specifying maximum percentages under this paragraph, 
                the Secretary shall, to the maximum extent practicable, 
                specify higher percentages for senior centers serving 
                areas with a high percentage of low-income older 
                individuals, rural areas, or both such areas.
                    (C) Maximum percentage.--The highest maximum 
                percentage that may be specified by the Secretary under 
                this paragraph shall be 90 percent.
            (3) Additional limitation on use of funds.--Amounts 
        received by a senior center under a grant under subsection (c) 
may not be used for any administrative purpose unless such purpose 
relates directly to the participation of the senior center in the pilot 
program under this section.
    (e) Duration.--
            (1) Commencement.--The Secretary of Commerce shall commence 
        the pilot program under this section as soon as practicable 
        after the date of the enactment of this Act.
            (2) Termination.--The Secretary may not make any grant 
        under the pilot program after the date that is three years 
        after the commencement of the pilot program under paragraph 
        (1).
    (f) Report.--
            (1) Requirement.--Not later than two years after the 
        commencement of the pilot program under subsection (e)(1), the 
        Secretary of Commerce shall submit to Congress a report on the 
        pilot program.
            (2) Elements.--The report under paragraph (1) shall set 
        forth the following:
                    (A) An estimate of the cost per senior center of 
                making available Internet access to or for older 
                individuals at or through senior centers in rural areas 
                and in non-rural areas, including a separate estimate 
                of the cost of--
                            (i) purchasing computers and associated 
                        hardware;
                            (ii) purchasing software;
                            (iii) purchasing and installing internal 
                        connections;
                            (iv) subscribing to Internet and 
                        telecommunications services at narrowband data 
                        rates; and
                            (v) operating and maintaining the systems 
                        which provide such access.
                    (B) An assessment of the extent to which computers 
                and Internet access are currently available to or for 
                older individuals at or through senior centers in the 
                United States, including--
                            (i) a comparison of the availability of 
                        computers and Internet access at or though 
                        senior centers in rural areas with the 
                        availability of computers and Internet access 
                        at or through senior centers in non-rural 
                        areas; and
                            (ii) a comparison of the availability of 
                        computers and Internet access at or through 
                        senior centers that serve a high percentage of 
                        low-income older individuals with the 
                        availability of computers and Internet access 
                        at or through senior centers that do not serve 
                        a high percentage of low-income older 
                        individuals.
                    (C) A proposal for a program to provide additional 
                subsidies or assistance to enhance the availability of 
                Internet access to or for older individuals, under 
                which program--
                            (i) all senior centers would be eligible 
                        for such subsidies or assistance; and
                            (ii) priority would be given in the 
                        provision of such subsidies or assistance to 
                        senior centers that serve a high percentage of 
                        low-income older individuals or are located in 
                        rural areas.
                    (D) An estimate of the annual cost of the program 
                proposed under subparagraph (C).
    (g) Definitions.--In this section:
            (1) Low-income older individual.--The term ``low-income 
        older individual'' means an older individual whose income level 
        is at or below the poverty line (as that term is defined in 
        section 102(41) of the Older Americans Act of 1965 (42 U.S.C. 
        3002(41)).
            (2) Older individual.--The term ``older individual'' has 
        the meaning given that term in section 102(38) of the Older 
        Americans Act of 1965 (42 U.S.C. 3002(38)).
            (3) Senior center.--The term ``senior center'' means any 
        facility that is eligible to receive funding as a senior center 
        under title III of the Older Americans Act of 1965 (42 U.S.C. 
        3021 et seq.).
    (h) Authorization of Appropriations.--
            (1) Authorization of appropriations.--There is hereby 
        authorized to be appropriated $30,000,000 for purposes of the 
        pilot program required by this section.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations in paragraph (1) shall remain 
        available until expended.
                                 <all>
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