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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DEDUCTION FOR PURCHASE AND INSTALLA-
TION OF SECURITY DEVICES.
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
itemized deductions for individuals and corporations) is
amended by adding at the end the following new section:
‘‘SEC. 199. SECURITY DEVICE PURCHASES.
‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be
allowed as a deduction for the taxable year an amount
equal to 100 percent of the amount paid by the taxpayer
for the purchase of a qualifying security device.
‘‘(b) MAXIMUM DEDUCTION.—The deduction allowed
by subsection (a) for the taxable year shall not exceed
$5,000.
‘‘(c) DEFINITIONS.—
‘‘(1) QUALIFYING
SECURITY
DEVICE.—The
term ‘qualifying security device’ means a security
device that is installed or placed in service in a
building or residence all or a portion of which is
owned or occupied by the taxpayer in the United
States.
‘‘(2) SECURITY
DEVICE.—The term ‘security
device’ means any of the following:
‘‘(A) An electronic access control device or
other similar alarms or devices.
‘‘(B) Closed-circuit television or other sur-
veillance and security cameras and equipment.
‘‘(C) Biometric controls, including auto-
mated fingerprint identification systems.
‘‘(D) Locks for doors and windows, includ-
ing tumbler, key, and numerical or other coded
devices.
‘‘(E) Components, wiring, system displays,
terminals, auxiliary power supplies and other
equipment necessary or incidental to the oper-
ation of any item described in subparagraph
(A), (B), (C), or (D).
‘‘(3) BUILDING.—The term ‘building’ includes
any structure or part of a structure used for com-
mercial, retail, or business purposes.
‘‘(4) RESIDENCE.—The term ‘residence’ means
any home, condominium, cooperative unit, boat, or
trailer used as a dwelling by the taxpayer.
‘‘(d) BASIS REDUCTION.—For purposes of this sub-
title, if a deduction is allowed under this section with re-
spect to the purchase of a qualifying security device, the
basis of such device shall be reduced by the amount of
the deduction so allowed.’’.
(b) CONFORMING AND CLERICAL AMENDMENTS.—
(1) Section 1016(a) of such Code (relating to
adjustments to basis) is amended by striking ‘‘and’’
at the end of paragraph (26), by striking the period
and inserting ‘‘, and’’ at the end of paragraph (27),
and by adding at the end the following new para-
graph:
‘‘(28) to the extent provided in section 199.’’.
(2) The table of sections for part VI of sub-
chapter B of chapter 1 of such Code is amended by
adding at the end the following new item:
‘‘199. Security device purchases.’’.
SEC. 2. EFFECTIVE DATE.
The amendments made by this Act shall apply to tax-
able years beginning after December 31, 2000.
Æ