Commerce Secretary Don Evans Calls on Senate to Pass Smith Amendment

Washington, DC - Commerce Secretary Donald Evans today called on the Senate to pass the Smith Amendment to the economic stimulus package.

"We need to do all we can at this time to keep America working and reinvigorate our great economic engine. Accelerating depreciation over the next three years, as the President proposed, could provide meaningful stimulus for our innovators and entrepreneurs. By contrast, the one-year proposal offered by the Majority Leader will do far less for our workers and businesses."

Under the incentive provision, companies that purchase technology assets and place them into service would be permitted to accelerate the expensing of those assets through a one-time depreciation deduction. Many suggest that such a deduction could help reinvigorate the IT industry, which has been struggling since 2000 but remains critical to our economic recovery.

"Accelerated depreciation is particularly critical for our technology sector," observed Evans. "America's technology sector has powered our economy for much of the past decade, creating jobs, increasing productivity, and expanding exports. We need to help them get back on their feet and to the forefront of our growth once again. The Smith Amendment will help re-ignite technology growth."

Secretary Evans additionally expressed hope that the accelerated depreciation proposed by the President, and embodied in the Smith Amendment, will speed infrastructure deployment, especially for high-speed, high-capacity data networks -- the broadband Internet.

"We believe the Smith Amendment will also help accelerate the deployment and usage of broadband networks. Broadband holds great promise for our economy and our society, helping employers revolutionize their processes and business methods. Broadband will also improve education, healthcare, national security and entertainment."