HR 1560 IH
106th CONGRESS
1st Session
H. R. 1560
To amend the Internal Revenue Code of 1986 to establish a 2-year
recovery period for depreciation of computers and peripheral equipment used in
manufacturing.
IN THE HOUSE OF REPRESENTATIVES
April 26, 1999
Mr. COLLINS (for himself, Mr. CARDIN, Mrs. EMERSON, Mr. HYDE, Mr. RAMSTAD,
Ms. DUNN, and Mr. WELLER) 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 establish a 2-year
recovery period for depreciation of computers and peripheral equipment used in
manufacturing.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Computer Equipment Common Sense Depreciation
Act'.
SEC. 2. 2-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF COMPUTERS AND
PERIPHERAL EQUIPMENT USED IN MANUFACTURING.
(a) 2-YEAR APPLICABLE RECOVERY PERIOD-
(1) IN GENERAL- Paragraph (1) of section 168(c) of the Internal Revenue
Code of 1986 (relating to applicable recovery period) is amended by
inserting before the first item in the table the following new item:
`Computers or peripheral equipment used in manufacturing
--2 years'.
(2) CONFORMING AMENDMENT- Clause (iv) of section 168(e)(3)(B) of such
Code (relating to 5-year property) is amended by inserting `(except
computers or peripheral equipment used in manufacturing)' before the
comma.
(b) 2-YEAR RECOVERY PERIOD UNDER ALTERNATIVE DEPRECIATION SYSTEM FOR
TAX-EXEMPT USE PROPERTY, ETC- Subparagraph (C) of section 168(g)(3) of such
Code (relating to alternative depreciation system for certain property) is
amended to read as follows:
`(C) QUALIFIED TECHNOLOGICAL EQUIPMENT-
`(i) IN GENERAL- Except as provided in clause (ii), in the case of
any qualified technological equipment, the recovery period used for
purposes of paragraph (2) shall be 5 years.
`(ii) COMPUTERS OR PERIPHERAL EQUIPMENT USED IN MANUFACTURING- In
the case of any computer or peripheral equipment used in manufacturing,
the recovery period used for purposes of paragraph (2) shall be 2
years.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
property placed in service after December 31, 1999.
END