WASHINGTON-Sens. Don Nickles (R-Okla.) and Blanche Lincoln (D-Ark.) offered legislation to make wireless telecommunications equipment eligible for depreciation treatment on par with other qualified technological gear. The bill, introduced April 11 and requiring an amendment to the 1986 tax law, was referred to the Senate Finance Committee.
A House bill introduced last month by Rep. David Drier (R-Calif.) would shorten the depreciation period for wireless facilities and other high-tech property. The three-year wireless depreciation would cover equipment purchased before Sept. 11, 2004. The measure was referred to the House Ways and Means Committee.
With President Bush forced to accept a scaled-down version of the 10-year, $726 billion tax cut he sought, the wireless industry now has less room to maneuver on depreciation. But that could be offset if the White House decides that jumpstarting the ailing high-tech sector might help boost the economy.
