Companies donating old computers to public and private schools will get a tax incentive for their good deed, thanks to a provision included in the tax and budget bills signed by President Clinton last week.
Any company donating a computer that is no more than two years old to a K-12 school will get a full deduction on the cost of the machine. Companies that build their own computers and hold them as assets, not as inventory, will get full deduction on the price to build the computer, and can deduct half the appreciated amount of the hardware.
"Right now, most schools can only get computers through outright budgeting, applying for grants, and forging partnerships with companies - this is a way to get computers to those who need them," said Lauri Gulakowski, spokeswoman for Representative Randy "Duke" Cunningham (R-California), who originally introduced the legislation as the 21st Century Classrooms Act.
To remain in force, the tax provision must be renewed in three years.
Only about 5 percent of all computers are donated to schools, charities, or nonprofits, according to the Gartner Group. Most - about 65 percent - end up in basements, garages, or warehouses. About 15 percent are recycled or thrown out, and another 15 percent are resold.
But simply donating computers to schools is not enough, some say.
"A lot of high-tech companies have discovered that it's not enough to put computers in schools. You have to provide training as well," said Lewis Roth, spokesman for Representative Anna Eshoo (D-California). Both this session and last, Eshoo introduced a similar bill to the one included in the tax package. However, her bill would require companies making donations to help provide computer training for teachers.
