SENATE ECONOMIC GROWTH, AGRICULTURE AND TOURISM COMMITTEE

STATEMENT TO

SENATE CONCURRENT RESOLUTION No. 110

STATE OF NEW JERSEY

DATED: MAY 5, 1997

      The Senate Economic Growth, Agriculture and Tourism Committee reports favorably Senate Concurrent Resolution No. 110.      This concurrent resolution memorializes Congress to allow for the more rapid depreciation of computer hardware 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.

      Currently, the federal Internal Revenue Code recognizes that non-amortizable computer software should be depreciated in three years, because of its rapid obsolescence.