Bill Summary
The "Artist-Museum Partnership Act of 2019" is a bill that proposes an amendment to the Internal Revenue Code of 1986. The amendment would allow for a deduction equal to the fair market value for charitable contributions of literary, musical, artistic, or scholarly compositions created by the donor. This means that individuals who donate these types of creations to certain organizations can claim a tax deduction for the value of the work. To qualify, the creation must have been made by the individual at least 18 months before the donation, and they must receive a qualified appraisal of the fair market value. The donated work must also be used by the receiving organization in a way that is related to their purpose or function for tax-exempt status. There is a limit on the deduction based on the taxpayer's income from similar types of work, and this amendment does not apply to contributions made while the individual was employed by an organization. The effective date for this amendment would apply to contributions made after the date of enactment in taxable years ending after that date.
Possible Impacts
1) This legislation could affect artists by allowing them to receive a larger tax deduction for charitable contributions of their own work. This could incentivize artists to donate more of their work to charitable organizations, potentially benefiting both the organizations and the artists themselves.
2) This legislation could also affect taxpayers in general by potentially reducing the amount of taxes they owe if they make qualifying charitable contributions of artistic property. This could benefit taxpayers by allowing them to support charitable causes while also receiving a tax benefit.
3) This legislation could affect non-profit organizations by potentially increasing the amount of donations they receive from artists, as the artists would now have a greater incentive to donate their work. This could benefit the organizations by providing them with more resources to support their charitable activities.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1793 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 1793
To amend the Internal Revenue Code of 1986 to provide that a deduction
equal to fair market value shall be allowed for charitable
contributions of literary, musical, artistic, or scholarly compositions
created by the donor.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 14, 2019
Mr. Lewis (for himself, Mr. Danny K. Davis of Illinois, and Ms. Norton)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide that a deduction
equal to fair market value shall be allowed for charitable
contributions of literary, musical, artistic, or scholarly compositions
created by the donor.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Artist-Museum Partnership Act of
2019''.
SEC. 2. CHARITABLE CONTRIBUTIONS OF CERTAIN ITEMS CREATED BY THE
TAXPAYER.
(a) In General.--Subsection (e) of section 170 of the Internal
Revenue Code of 1986 (relating to certain contributions of ordinary
income and capital gain property) is amended by adding at the end the
following new paragraph:
``(8) Special rule for certain contributions of literary,
musical, or artistic compositions.--
``(A) In general.--In the case of a qualified
artistic charitable contribution--
``(i) the amount of such contribution shall
be the fair market value of the property
contributed (determined at the time of such
contribution), and
``(ii) no reduction in the amount of such
contribution shall be made under paragraph (1).
``(B) Qualified artistic charitable contribution.--
For purposes of this paragraph, the term `qualified
artistic charitable contribution' means a charitable
contribution of any literary, musical, artistic, or
scholarly composition, or similar property, or the
copyright thereon (or both), but only if--
``(i) such property was created by the
personal efforts of the taxpayer making such
contribution no less than 18 months prior to
such contribution,
``(ii) the taxpayer--
``(I) has received a qualified
appraisal of the fair market value of
such property in accordance with the
regulations under this section, and
``(II) attaches to the taxpayer's
income tax return for the taxable year
in which such contribution was made a
copy of such appraisal,
``(iii) the donee is an organization
described in subsection (b)(1)(A),
``(iv) the use of such property by the
donee is related to the purpose or function
constituting the basis for the donee's
exemption under section 501 (or, in the case of
a governmental unit, to any purpose or function
described under subsection (c)),
``(v) the taxpayer receives from the donee
a written statement representing that the
donee's use of the property will be in
accordance with the provisions of clause (iv),
and
``(vi) the written appraisal referred to in
clause (ii) includes evidence of the extent (if
any) to which property created by the personal
efforts of the taxpayer and of the same type as
the donated property is or has been--
``(I) owned, maintained, and
displayed by organizations described in
subsection (b)(1)(A), and
``(II) sold to or exchanged by
persons other than the taxpayer, donee,
or any related person (as defined in
section 465(b)(3)(C)).
``(C) Maximum dollar limitation; no carryover of
increased deduction.--The increase in the deduction
under this section by reason of this paragraph for any
taxable year--
``(i) shall not exceed the artistic
adjusted gross income of the taxpayer for such
taxable year, and
``(ii) shall not be taken into account in
determining the amount which may be carried
from such taxable year under subsection (d).
``(D) Artistic adjusted gross income.--For purposes
of this paragraph, the term `artistic adjusted gross
income' means that portion of the adjusted gross income
of the taxpayer for the taxable year attributable to--
``(i) income from the sale or use of
property created by the personal efforts of the
taxpayer which is of the same type as the
donated property, and
``(ii) income from teaching, lecturing,
performing, or similar activity with respect to
property described in clause (i).
``(E) Paragraph not to apply to certain
contributions.--Subparagraph (A) shall not apply to any
charitable contribution of any letter, memorandum, or
similar property which was written, prepared, or
produced by or for an individual while the individual
is an officer or employee of any person (including any
Government agency or instrumentality) unless such
letter, memorandum, or similar property is entirely
personal.
``(F) Copyright treated as separate property for
partial interest rule.--In the case of a qualified
artistic charitable contribution, the tangible
literary, musical, artistic, or scholarly composition,
or similar property and the copyright on such work
shall be treated as separate properties for purposes of
this paragraph and subsection (f)(3).''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after the date of the enactment of this Act in
taxable years ending after such date.
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