COMPUTER DEPRECIATION REFORM ACT -- HON. JERRY WELLER (Extensions of
Remarks - April 13, 2000)
[Page: E573]
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HON. JERRY WELLER
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
Thursday, April 13, 2000
- Mr. WELLER. Mr. Speaker, today, I join my colleagues, TOM DAVIS of
Virginia, BILLY TAUZIN of Louisiana and JENNIFER DUNN of
Washington, in introducing the Computer Depreciation Reform Act of 2000 to
allow businesses to expense their computer equipment. Currently, businesses
must depreciate their computer equipment over a 5-year period. I believe that
this 5-year depreciation lifetime for tax purposes is clearly outdated. Many
companies today must update their computers as quickly as every 14 months in
order to stay current technologically.
- I believe it is time to update an outdated Tax Code to reflect the
realities of today's technology-based workplace. A 5-year depreciation
schedule for business computers is no longer realistic.
- The Computer Depreciation Reform Act allows every company, from the
neighborhood real estate office, to the local hospital, to the local bank to
fully depreciate, or expense, their computer equipment during the tax year in
which the equipment is purchased. As a result, these companies will no longer
be forced to keep their equipment ``on the books'' for tax purposes long after
its useful life has become obsolete.
- Mr. Speaker, I look forward to working with my colleagues on both sides of
the aisle, the leadership, and Chairman ARCHER to update the Tax Code
to reflect the realities of today's technological workplace.
END