The mobile-phone industry applauded new legislation clarifying for depreciation purposes that computer-based equipment at cell sites is five-year property. CTIA, the U.S. cell-phone association, said today there is significant uncertainty regarding tax treatment of nearly $20 billion in annual wireless equipment purchases. The reason is that wireless was in its infancy when Congress assigned the period over which assets are depreciated.
Bills in the House are sponsored by Reps. Kenny Hulshof (R-Mo.) and Xavier Becerra (D-Calif.) and in the Senate by Sens. Craig Thomas (R-Wyo.) and Blanche Lincoln (D-La).
“This is simply a matter of tax fairness,” said Steve Largent, president of CTIA. “There should not be a disincentive for wireless companies to invest in what has become a critical communications infrastructure in this country.”
Largent pointed to major investments companies are making in advanced wireless Internet service, location-based E-911 equipment and other critical technologies as evidence for the tax clarifying legislation.
