To amend the Internal Revenue Code of 1986 to allow businesses to expense qualified security devices.

September 25, 2001

Mr. WELLER (for himself and Mr. CROWLEY) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow businesses to expense qualified security devices.

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 `Securing America Investment Act of 2001'.

SEC. 2. BUSINESS DEDUCTION FOR PURCHASE AND INSTALLATION OF SECURITY DEVICES.

(a) IN GENERAL- Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to itemized deductions for individuals and corporations) is amended by inserting after section 179A the following new section:

`SEC. 179B. SECURITY DEVICE PURCHASES.

`(a) ALLOWANCE OF DEDUCTION- A taxpayer may elect to treat the cost of any qualifying security device as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which such device is placed in service.

`(b) DEFINITIONS- For purposes of this section--

`(1) QUALIFYING SECURITY DEVICE- The term `qualifying security device' means a security device (to which section 168 applies) which is acquired by purchase (as defined in section 179(d)(2)) and which is installed or placed in service in a building which is owned or occupied by the taxpayer and which is located in the United States.

`(2) SECURITY DEVICE- The term `security device' means any of the following:

`(A) An electronic access control device or system.

`(B) Biometric identification or verification device or system.

`(C) Closed-circuit television or other surveillance and security cameras and equipment.

`(D) Locks for doors and windows, including tumbler, key, and numerical or other coded devices.

`(E) Computers and software used to combat cyberterrorism.

`(F) Electronic alarm systems to provide detection notification and off-premises transmission of an unauthorized entry, attack, or fire.

`(G) Components, wiring, system displays, terminals, auxiliary power supplies, and other equipment necessary or incidental to the operation of any item described in subparagraph (A), (B), (C), (D) (E), or (F).

`(3) BUILDING- The term `building' includes any structure or part of a structure used for commercial, retail, or business purposes.

`(c) SPECIAL RULES-

`(1) BASIS REDUCTION- For purposes of this subtitle, if a deduction is allowed under this section with respect to the purchase of a qualifying security device, the basis of such device shall be reduced by the amount of the deduction so allowed.

`(2) CERTAIN RULES TO APPLY- Rules similar to the rules of paragraphs (3) and (4) of section 179(b), section 179(c), and paragraphs (3), (4), (8), and (10) of section 179(d), shall apply for purposes of this section.'.

(b) CONFORMING AND CLERICAL AMENDMENTS-

(1) Section 263(a)(1) is amended by striking `or' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting `, or', and by inserting after subparagraph (H) the following new subparagraph:

`(I) expenditures for which a deduction is allowed under section 179B.'.

(2) Section 312(k)(3)(B) is amended by striking `or 179A' each place it appears in the heading and text and inserting `, 179A, or 179B'.

(3) Section 1016(a) is amended by striking `and' at the end of paragraph (27), by striking the period at the end of paragraph (28) and inserting `, and', and by inserting after paragraph (28) the following new paragraph:

`(29) to the extent provided in section 179B(d)(1),'.

(4) Section 1245(a) is amended by inserting `179B,' after `179A,' both places it appears in paragraphs (2)(C) and (3)(C).

(5) The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 179A the following new item:

`Sec. 179B. Security device purchases.'.

(c) EFFECTIVE DATE- The amendments made by this Act shall apply to taxable years ending after September 10, 2001.

END