WASHINGTON DC – Senators John Kerry (D-Mass.) and John Ensign (R-Nev.) introduced the “MOBILE Cell Phone Act of 2008” today, to modernize the tax treatment of cell phones and mobile communication devices by repealing the requirement that employers maintain detailed logs in order to show that these devices are used for business purposes more than 50 percent of the time. Because the usage of cell phones has changed dramatically in the last decade, the Kerry-Ensign bill would end that out-of-date practice. 

“We need to modernize the law now to reflect the reality that the use of cell phones by businesses has changed dramatically in the last ten years,” said Kerry. “In the last twenty years, the use of communication devices has skyrocketed, making them cheaper, faster, and more accessible than ever. Cell phones are no longer executive perks or luxury items, and an antiquated tax code shouldn’t treat them that way any more.”

“Wireless communication has come a long way since 1989, moving from rare usage to an everyday business necessity, but our tax code has not kept pace,” said Ensign. “Today’s wireless devices are smaller, cheaper and offer much better service, yet our tax code remains as cumbersome as some of the first cell phones. The outdated tax code creates a needless and bulky burden on businesses and employees using wireless devices, and our bill would bring the law up-to-date to reflect the broad use of wireless communication today.”

The Kerry-Ensign legislation would strike cell phones and similar devices from the category of "listed property" within tax code Section 280F(d)(4). This reform would update the Internal Revenue Code to recognize the growth of business-use mobile communications devices and eliminate paperwork required for businesses to claim a deduction. In 1989, Congress passed a law which added cell phones to the definition of listed property under section 280F(d)(4) of the Internal Revenue Code of 1986. Treating cell phones as listed property requires substantial documentation in order for cell phones to benefit from accelerated depreciation and not be treated as taxable income to the employee. A companion bill has been introduced in the House, (H.R. 5450), by Reps. Sam Johnson (R-Texas) and Earl Pomeroy (D-N.D.)

###