SENATE CONCURRENT RESOLUTION No. 110

STATE OF NEW JERSEY

INTRODUCED JANUARY 27, 1997

By Senator SINAGRA

A Concurrent Resolution memorializing the Congress of the United States to allow for the more rapid depreciation of computers and other information processing equipment.

Whereas, The federal Internal Revenue Code currently requires that business purchasers of computer equipment to deduct the purchase cost of the equipment from taxable income over period of five years; and

Whereas, The federal Internal Revenue Code already recognizes that non-amortizable computer software should, because of its rapid obsolescence, be depreciated in three years; and

Whereas, Cutting edge hardware suffers the same short life span, and should be accorded the same status as three-year property for depreciation purposes; and

Whereas, Faster depreciation acts as an incentive for corporations to maintain state-of-the-art hardware; now, therefore,

    Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

    1. The Congress of the United States is respectfully memorialized to amend the federal Internal Revenue Code to allow for the more rapid depreciation of computers and other information processing equipment as three-year property pursuant to section 168 of the federal Internal Revenue Code, 26 U.S.C. §168.

    2. Duly authenticated copies of this resolution signed by the President of the Senate and the Speaker of the General Assembly and attested by the Secretary of the Senate and the Clerk of the General Assembly, shall be transmitted to the President of the Senate, the Speaker of the House of Representatives, and each of the members of Congress elected from this State.

STATEMENT

    This concurrent resolution memorializes Congress to to allow for the more rapid depreciation of computers and other information processing equipment as three-year property pursuant to section 168 of the federal Internal Revenue Code, 26 U.S.C. §168, instead of as five-year property. More rapid depreciation would recognize the short life span of computer hardware and act as an incentive for corporations to maintain state-of-the-art hardware.