To amend the Internal Revenue Code of 1986 to allow corporations to claim a charitable deduction for the donation of services related to contributions of computer technology or equipment.

February 11, 2003

Mr. ISRAEL introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow corporations to claim a charitable deduction for the donation of services related to contributions of computer technology or equipment.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. CHARITABLE DEDUCTION FOR DONATION OF COMPUTER SERVICES.

(a) IN GENERAL- Section 170(e)(6)(B) of the Internal Revenue Code of 1986 (relating to qualified computer contribution) is amended by inserting before `but only' the following: `, or any services related to computer design or to computer technology or equipment,'.

(b) VALUE- Section 170(e)(6)(B) of such Code is amended by adding at the end the following flush language:

`The value of such a contribution of services related to computer design or to computer technology or equipment shall be calculated at a rate not to exceed $65 an hour.'.

(c) DEFINITION- Section 170(e)(6)(F) of such Code (relating to definitions) is amended by redesignating clause (ii) as clause (iii) and by inserting after clause (i) the following new clause:

`(ii) SERVICES RELATED TO COMPUTER DESIGN OR TO COMPUTER TECHNOLOGY OR EQUIPMENT- The term `services related to computer design or to computer technology or equipment' includes the following:

`(I) Preparation of artwork, illustrations, layout, typesetting, or photo retouching for purposes of being printed or published in any medium.

`(II) Preparation of preflight or prepress services.

`(III) Preparation of printing films.

`(IV) Electronic scanning services and color separations.

`(V) Internet design services.

`(VI) Multimedia preparation and design services.

`(VII) Design services in the preparation of signs and banners.

`(VIII) Network designing, installation, and support services.

`(IX) Computer troubleshooting.

`(X) Computer repair.

`(XI) Computer training.

`(XII) Computer programming and software design.'.

(d) EFFECTIVE DATE- The amendments made by this section shall take effect with respect to taxable years beginning after December 31, 2002.

END