CONTENTS ADMINISTRATION WITNESSES Page American Vocational Association, Gene Bottoms, executive director Baran, Jan W., Esq., on behalf of the Knight Foundation..... Bloustein, Edward J., president, Rutgers, the State University of New Jersey, on behalf of the American Education Associations..... Blyth Eastman Paine Webber, Nicholas Clements, vice president. Bottoms, Gene, executive director, American Vocational Association Bregman, Stanley I., on behalf of the Truck Renting and Leasing Association Bryan, L. Thomas, Jr., chairman, Committee on Capital Availability for Re- 308 183 Business Equipment Manufacturers Association, the Scientific Apparatus 288 Clements, Nicholas, vice president, Blyth Eastman Paine Webber. Freeman, Mrs. Orville L., national president, Girl Scouts of America Girl Scouts of America, Mrs. Orville L. Freeman, national president Harris, Richard D., manager, Information Management Policy and Productiv- 279 230 Howard, Frederic K., vice president and treasurer, Johnson & Higgins on 423 Kahne, Stephen, dean of engineering, Polytechnic Institute of New York on behalf of the American Society of Engineering Education. Knight Foundation, Jan W. Baran, Esq. 248 Langdon, Larry R., corporate tax director and tax counsel, Hewlett-Packard Lehrfeld, William J., Esq., special counsel for the Heritage Foundation Motley, John J., III, director of Federal legislation, National Federation of Moore, Wayne, R., president and chief executive officer, Moore Special Tool Motor Vehicle Manufacturers Association, John S. Nolan, Esq. Page 372 207 393 134 National Committee for Responsive Philanthropy, Robert O. Bothwell, executive director..... 211 National Federation of Independent Business, John J. Motley III, director of 134 National Machine Tool Builders' Association, Wayne R. Moore.. 372 Nolan, John S., Esq., on behalf of the Motor Vehicle Manufacturers Association..... New England Council, Inc., L. Thomas Bryan Jr., chairman, Committee on 308 O'Connell, Brian, president, Independent Sector.. 393 202 Semiconductor Research Corp., Erich Bloch, chairman of the board. 346 Truck Renting and Leasing Association and the American Car Rental Association, Stanley I. Bregman.... 130 United Way of America, Jack Moskowitz, senior vice president, Federal Government relations....... 207 Wellington, Roger, chairman and chief executive officer, Augat, Inc., on behalf of the American Electronics Association 257 49 Zschau, Hon. Ed, a U.S. Representative from California.. ADDITIONAL INFORMATION Committee press release...... Opening statement of Senator Durenberger.. Opening statement of Senator Danforth Opening statement of Senator Wallop...... Opening statement of Senator Mitchell Description of S. 1758, S. 1857, and S. 2165 by the Joint Committee on Prepared statement of Congressman Ed Zschau 51 64 84 Prepared statement of the Truck Renting and Leasing Association and the 132 Prepared statement of the National Federation of Independent Business...... the Scientific Apparatus Makers Association, and the Semiconductor Industry Association... Prepared statement of the National Machine Tool Builders' Association..... Chamber of Commerce of the United States of America. Computer and Business Equipment Manufacturers Association.. Page 376 395 427 436 443 451 455 479 490 493 503 510 513 538 544 546 549 551 553 PROPOSALS RELATING TO FOUNDATIONS, HIGH TECHNOLOGY, AND DEPRECIATION FRIDAY, FEBRUARY 24, 1984 U.S. SENATE, SUBCOMMITTEE ON TAXATION AND DEBT Washington, DC. The subcommittees met, pursuant to notice, at 9:40 a.m. in room SD-215, Dirksen Senate Office Building, Senators Durenberger and Chafee (chairmen) presiding. Present: Senators Chafee, Durenberger, Danforth, Wallop, Bentsen, and Mitchell. [The press release announcing the hearings, background material on the bills under discussion, and the prepared statements of Senators Chafee and Wallop follow:] [Press release No. 84-113, January 31, 1984] FINANCE COMMITTEE SETS HEARING ON FOUNDATIONS, HIGH TECHNOLOGY AND DEPRECIATION PROPOSALS Senator Bob Packwood, Chairman of the Subcommittee on Taxation and Debt Management, and Senator John Chafee, Chairman of the Subcommittee on Savings, Pensions, and Investment Policy, announced today that a joint hearing will be held on Friday, February 24, 1984, on proposals concerning private foundations and incentives for high technology. The hearing will begin at 9:30 a.m. in Room SD-215 of the Dirksen Senate Office Building. The following proposals will be considered: S. 1857.-S. 1857 is designed to increase the ability of private foundations to receive donations and use their funds for charitable purposes. The bill generally eliminates distinctions in the tax treatment of donors to private foundations and public charities. The bill also eliminates certain restrictions on the activities of donors to private foundations, and changes certain reporting and disclosure obligations of private foundations. S. 2165.-S. 2165, the High Technology Research and Scientific Education Act of 1983, combines a number of proposals and bills pending in the Senate that deal with tax incentives designed to promote the development of new technology. The bill (1) makes the tax credit for qualified research expenses permanent, and adopts a new separate definition of qualified research for purposes of the credit; (2) adds depreciation as a qualified research expense for purposes of the credit; (3) creates a new credit for university basic research; and (4) makes the credit available for use by start-up companies and joint research ventures. The bill also expands the deduction for corporate donations of scientific equipment to certain post-secondary schools, and sets forth rules governing the exclusion from income of scholarships, grants and student loan forgiveness received by certain graduate students in scientific fields. Immediately following the joint hearing, the Subcommittee on Taxation and Debt Management will hear testimony on S. 1758, the Accounting Cost Recovery Simplification Act of 1983, introduced by Senator Bentsen for himself and others. (1) |