I 
109TH CONGRESS 
1ST SESSION H. R. 3632
To amend the Internal Revenue Code of 1986 to allow a deduction for 
expenses related to the purchase and installation of qualifying electronic 
premise security systems. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2005
Mr. LATOURETTE 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 for expenses related to the purchase and in-
stallation of qualifying electronic premise security sys-
tems.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Secure America’s 
Homes and Businesses Act of 2005.’’
SEC. 2. DEDUCTION FOR PURCHASE AND INSTALLATION OF 
ELECTRONIC PREMISE SECURITY SYSTEMS. 
(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 inserting after section 181 the following new 
section: 
‘‘SEC. 182. ELECTRONIC PREMISE SECURITY SYSTEMS. 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of a 
taxpayer who elects the application of this section, there 
shall be allowed as a deduction for the taxable year an 
amount equal to the cost of any expenses relating to the 
purchase and professional installation of a qualifying elec-
tronic premise security system in a residential or commer-
cial premise owned or occupied by the taxpayer during 
such taxable year. 
‘‘(b) MAXIMUM DEDUCTION.—The deduction allowed 
by subsection (a) for the taxable year shall not exceed—
‘‘(1) in the case of a qualifying electronic 
premise security system installed in a residential 
premise, $5,000, and 
‘‘(2) in the case of a qualifying electronic 
premise security system installed in a commercial 
premise, $50,000. 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFYING ELECTRONIC PREMISE SECU-
RITY
SYSTEM.—The term ‘qualifying electronic 
premise security system’ means any of the following: 
‘‘(A) Electronic fire or life safety devices, 
intrusion detection alarms, and any other bur-
glar alarms or devices. 
‘‘(B) Video surveillance or other security 
cameras and equipment. 
‘‘(C) Access controls, including biometric 
controls, automated fingerprint identification 
systems, and other electronic access control de-
vices. 
‘‘(D) Components, wiring, system displays, 
terminals, auxiliary power supplies, and other 
equipment necessary or incidental to the instal-
lation and operation of any item described in 
subparagraph (A), (B), or (C). 
‘‘(2) PREMISE.—
‘‘(A) RESIDENTIAL
PREMISE.—The term 
‘residential premise’ means any house, condo-
minium, cooperative unit, boat, or trailer used 
as a dwelling by the taxpayer. 
‘‘(B) COMMERCIAL
PREMISE.—The term 
‘commercial premise’ means any structure, part 
of a structure, or property used by the taxpayer
for commercial, retail, or business purposes, in-
cluding parking lots and other outside areas. 
‘‘(d) BASIS REDUCTION.—For purposes of this title, 
the basis of any property shall be reduced by the portion 
of the cost of such property taken into account under sub-
section (a).’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 263(a)(1) of such Code (relating to 
capital expenditures) is amended by striking ‘‘or’’ at 
the end of subparagraph (H), by striking the period 
at the end of subparagraph (I) and inserting ‘‘, or’’, 
and by inserting after subparagraph (I) the fol-
lowing new subparagraph: 
‘‘(J) expenditures for which a deduction is 
allowed under section 182.’’. 
(2) Section 1016(a) of such Code (relating to 
adjustments to basis) is amended by striking ‘‘and’’ 
at the end of paragraph (30), by striking the period 
and inserting ‘‘, and’’ at the end of paragraph (31), 
and by adding at the end the following new para-
graph: 
‘‘(32) to the extent provided in section 182.’’. 
(3) The table of sections for part VI of sub-
chapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 181 the 
following new item:
‘‘Sec. 182. Electronic premise security systems.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall apply to taxable years beginning after De-
cember 31, 2005.
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