I
107TH CONGRESS
1ST SESSION
H. R. 1411
To amend the Internal Revenue Code of 1986 to allow qualified technological
equipment and computer software to be expensed, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 4, 2001
Mr. WELLER (for himself, Mr. NEAL of Massachusetts, Mrs. KELLY, Mr.
TAUZIN, Mr. GOODLATTE, Mr. COX, Mr. CUNNINGHAM, Mr. ISSA, Mrs.
WILSON, and Mr. EHRLICH) introduced the following bill; which was re-
ferred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow quali-
fied technological equipment and computer software to
be expensed, and for other purposes.
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 ‘‘Expensing Technology
Reform Act of 2001’’.
SEC. 
2. 
EXPENSING 
OF 
QUALIFIED 
TECHNOLOGICAL
EQUIPMENT AND COMPUTER SOFTWARE.
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended
by inserting after section 179A the following new section:
‘‘SEC. 179B. DEDUCTION FOR QUALIFIED TECHNOLOGICAL
EQUIPMENT AND COMPUTER SOFTWARE.
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may
elect to treat the cost of any qualified technological prop-
erty as an expense which is not chargeable to capital ac-
count. Any cost so treated shall be allowed as a deduction
for the taxable year in which the qualified technological
property is placed in service.
‘‘(b) QUALIFIED TECHNOLOGICAL PROPERTY.—For
purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified techno-
logical property’ means—
‘‘(A) property to which section 168 applies
which is—
‘‘(i) qualified technological equipment
(as defined in section 168(i)(2)),
‘‘(ii) any wireless telecommunications
equipment,
‘‘(iii) any advanced services equip-
ment, or
‘‘(iv) any network or network system
equipment, and
‘‘(B) computer software (as defined in sec-
tion 197(e)(3)(B)) to which section 167 applies.
‘‘(2) WIRELESS TELECOMMUNICATIONS EQUIP-
MENT.—The 
term 
‘wireless 
telecommunications
equipment’ means all equipment used in the trans-
mission, reception, coordination, or switching of
wireless telecommunications service. For this pur-
pose, ‘wireless telecommunications service’ includes
any commercial mobile radio service as defined in
title 47 of the Code of Federal Regulations.
‘‘(3) ADVANCED
SERVICES
EQUIPMENT.—The
term ‘advanced services equipment’ means equip-
ment, excluding cabling, used in the provision of
Internet or electronic communications access services
or support, or which supports access to electronic
media and data and associated communications sup-
port, provided that such services or support con-
stitute or directly contribute to the provision of ad-
vanced telecommunications capability as that term is
defined in section 706(c)(1) of the Telecommuni-
cations Act of 1996.
‘‘(4) NETWORK OR NETWORK SYSTEM EQUIP-
MENT.—The term ‘network or network system
equipment’ means any information technology equip-
ment, including computer servers, hubs, bridges,
switches and routers, which are interconnected so as
to enable computers and peripherals to communicate
with each other either individually or as a single
unit.
‘‘(c) CERTAIN RULES TO APPLY.—Rules similar to
the rules of paragraphs (4), (5), and (6) of section 179A
shall apply for purposes of this section.’’.
(b) INCLUSION OF COPIERS, DUPLICATING EQUIP-
MENT, AND OTHER EQUIPMENT.—Clause (iv) of section
168(i)(2)(B) of such Code is amended—
(1) by striking ‘‘copiers, duplicating equip-
ment,’’ in subclause (II),
(2) by adding ‘‘and’’ at the end of subclause
(I),
(3) by striking ‘‘, and’’ at the end of subclause
(II) and inserting a period, and
(4) by striking subclause (III).
(c) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 263(a) of such
Code is amended by striking ‘‘or’’ at the end of sub-
paragraph (G), by striking the period at the end of
subparagraph (H) and inserting ‘‘; or’’, and by add-
ing at the end the following new subparagraph:
‘‘(I) expenditures for which a deduction is
allowed under section 179B.’’.
(2) Subparagraph (B) of section 312(k)(3) of
such Code is amended by striking ‘‘or 179A’’ each
place it appears and inserting ‘‘, 179A, or 179B’’.
(3) Subparagraph (C) of section 1245(a)(2) of
such Code is amended by inserting ‘‘179B,’’ after
‘‘179A,’’.
(4) 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 179A the
following new item:
‘‘Sec. 179B. Deduction for qualified technological equipment and
computer software.’’.
(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.
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