I
107TH CONGRESS
1ST SESSION
H. R. 3057
To amend the Internal Revenue Code of 1986 to reduce to 3 years the
depreciation recovery period for qualified technological equipment.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 5, 2001
Mr. WATKINS of Oklahoma 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 reduce
to 3 years the depreciation recovery period for qualified
technological equipment.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. 3-YEAR RECOVERY PERIOD FOR QUALIFIED
TECHNOLOGICAL EQUIPMENT.
(a) IN GENERAL.—Subparagraph (A) of section
168(e)(3) of the Internal Revenue Code of 1986 (defining
3-year property) is amended by striking ‘‘and’’ at the end
of clause (ii), by striking the period at the end of clause
(iii) and inserting a comma, and by adding at the end the
following new clause:
‘‘(iv) 
any 
qualified 
technological
equipment.’’
(b) ADDITIONAL PROPERTY INCLUDED AS QUALI-
FIED TECHNOLOGICAL EQUIPMENT.—
(1) IN GENERAL.—Subparagraph (A) of section
168(i)(2) of such Code (defining qualified techno-
logical equipment) is amended by striking ‘‘and’’ at
the end of clause (ii), and by adding at the end the
following new clauses:
‘‘(iv) any wireless telecommunications
equipment,
‘‘(v) any advanced services equipment,
and
‘‘(vi) any network or network system
equipment.’’
(2) DEFINITIONS.—Paragraph (2) of section
168(i) of such Code is amended by adding at the
end the following new subparagraphs:
‘‘(D) 
WIRELESS
TELECOMMUNICATIONS
EQUIPMENT.—The term ‘wireless telecommuni-
cations equipment’ means all equipment used in
the transmission, reception, coordination, or
switching of wireless telecommunications serv-
ice. For this purpose, ‘wireless telecommuni-
cations service’ includes any commercial mobile
radio service as defined in title 47 of the Code
of Federal Regulations.
‘‘(E) ADVANCED SERVICES EQUIPMENT.—
The term ‘advanced services equipment’ means
equipment, excluding cabling, used in the provi-
sion of Internet or electronic communications
access services or support, or which supports
access to electronic media and data and associ-
ated communications support, provided that
such services or support constitute or directly
contribute to the provision of advanced tele-
communications capability as that term is de-
fined in section 706(c)(1) of the Telecommuni-
cations Act of 1996.
‘‘(F) NETWORK
OR
NETWORK
SYSTEM
EQUIPMENT.—The term ‘network or network
system equipment’ means any information tech-
nology equipment, including computer servers,
hubs, bridges, switches and routers, which are
interconnected so as to enable computers and
peripherals to communicate with each other ei-
ther individually or as a single unit.’’
(c) CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 168(e)(3) of
such Code is amended—
(A) by striking clause (iv) and redesig-
nating clauses (v) and (vi) as clauses (iv) and
(v), respectively, and
(B) by striking ‘‘clause (vi)(I)’’ and insert-
ing ‘‘clause (v)(I)’’.
(2) Subparagraph (C) of section 168(g)(3) of
such Code is amended by striking ‘‘5 years’’ and in-
serting ‘‘3 years’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
the date of the enactment of this Act.
Æ