I
106TH CONGRESS
2D SESSION
H. R. 4061
To amend the Internal Revenue Code of 1986 to extend and expand the
enhanced deduction for charitable contributions of computers to provide
greater public access to computers, including access by the poor.
IN THE HOUSE OF REPRESENTATIVES
MARCH 22, 2000
Mr. JEFFERSON (for himself, Mr. FROST, Mr. ROGAN, Mr. MCDERMOTT, Mr.
TOWNS, Mr. LEWIS of Georgia, Ms. JACKSON-LEE of Texas, Mrs. MEEK
of Florida, Ms. KILPATRICK, Mrs. CHRISTENSEN, Mr. PAYNE, Mr.
BISHOP, Mrs. MINK of Hawaii, Mrs. MCCARTHY of New York, Mr. CLY-
BURN, Mr. WYNN, Ms. MCKINNEY, Ms. PELOSI, Mr. FORD, Mr.
HASTINGS of Florida, Mr. OWENS, Ms. LEE, Mr. SCOTT, Mr. WATT of
North Carolina, Ms. CARSON, Mr. DAVIS of Illinois, Mr. RANGEL, Mr.
MATSUI, Mr. HAYWORTH, Mr. HILLIARD, Mr. MEEKS of New York, Ms.
BROWN of Florida, and Mr. TANNER) 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 extend
and expand the enhanced deduction for charitable con-
tributions of computers to provide greater public access
to computers, including access by the poor.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘qualified computer
technology or equipment’ means any computer
technology or equipment (as defined in section
170(e)(6)) acquired by purchase (as defined in
section 170(d)(2)).
‘‘(B) EXCEPTIONS.—
‘‘(i) 
CERTAIN
SOFTWARE
EX-
CLUDED.—Such term shall not include
game software or any other software which
is not necessary for—
‘‘(I) use of the computer for ac-
cess and use of the Internet (including
email), or
‘‘(II) business or educational use.
‘‘(ii) COMPUTER
MUST
BE
CAPABLE
OF
INTERNET
ACCESS.—Such term shall
not include any computer which does not
have a modem or other equipment capable
of supporting Internet access.’’
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title
31, United States Code, is amended by inserting be-
fore the period ‘‘, or from section 35 of such Code’’.
(2) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is
amended by striking the last item and inserting the
following new items:
‘‘Sec. 35. Purchase of computers by low-income individuals.
‘‘Sec. 36. Overpayments of tax.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 3. EXTENSION AND EXPANSION OF ENHANCED DEDUC-
TION FOR CHARITABLE CONTRIBUTIONS OF
COMPUTERS.
(a) EXTENSION.—Subparagraph (F) of section
170(e)(6) of the Internal Revenue Code of 1986 (relating
to special rule for contributions of computer technology
and equipment for elementary or secondary school pur-
poses) is amended by striking ‘‘December 31, 2000’’ and
inserting ‘‘June 30, 2004’’.
(b) EXPANSION.—
(1) IN
GENERAL.—Paragraph (6) of section
170(e) of such Code is amended by redesignating
subparagraphs (C), (D), (E), and (F) as subpara-
graphs (D), (E), (F), and (G), respectively, and by
striking all that precedes subparagraph (D) (as so
redesignated) and inserting the following:
‘‘(6) SPECIAL RULE FOR CONTRIBUTIONS OF
COMPUTER TECHNOLOGY AND EQUIPMENT.—
‘‘(A) IN GENERAL.—The amount of any
qualified computer contribution which is taken
into account under this section shall be the
greater of—
‘‘(i) the amount determined without
regard to paragraph (1), or
‘‘(ii) the amount determined with re-
gard to paragraph (1).
‘‘(B) QUALIFIED
COMPUTER
CONTRIBU-
TION.—For purposes of this paragraph, the
term ‘qualified computer contribution’ means a
charitable contribution by a corporation of any
computer technology or equipment, but only
if—
‘‘(i) the contribution is to a qualified
organization,
‘‘(ii) the contribution is made not
later than 2 years after the date the tax-
payer acquired the property (or in the case
of property constructed by the taxpayer,
the date the construction of the property is
substantially completed),
‘‘(iii) the original use of the property
is by the donor or the donee,
‘‘(iv) substantially all of the use of the
property by the donee is for use within the
United States and, in the case of a quali-
fied educational organization, for edu-
cational purposes in any of the grades K-
12 that are related to the purpose or func-
tion of the organization,
‘‘(v) the property is not transferred by
the donee in exchange for money, other
property, or services, except for shipping,
installation and transfer costs,
‘‘(vi) in the case of a qualified edu-
cational organization, the property will fit
productively into the entity’s education
plan, and
‘‘(vii) the entity’s use and disposition
of the property will be in accordance with
the provisions of clauses (iv) and (v).
‘‘(C) 
QUALIFIED
ORGANIZATION.—For
purposes of this paragraph—
‘‘(i) IN GENERAL.—The term ‘quali-
fied organization’ means—