Artist-Museum Partnership Act of 2019

I 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Artist-Museum Part- 4 nership Act of 2019’’. 5 VerDate Sep 11 2014 04:57 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793 kjohnson on DSK79L0C42 with BILLS 2 •HR 1793 IH SEC. 2. CHARITABLE CONTRIBUTIONS OF CERTAIN ITEMS 1 CREATED BY THE TAXPAYER. 2 (a) IN GENERAL.—Subsection (e) of section 170 of 3 the Internal Revenue Code of 1986 (relating to certain 4 contributions of ordinary income and capital gain prop- 5 erty) is amended by adding at the end the following new 6 paragraph: 7 ‘‘(8) SPECIAL RULE FOR CERTAIN CONTRIBU- 8 TIONS OF LITERARY, MUSICAL, OR ARTISTIC COM- 9 POSITIONS.— 10 ‘‘(A) IN GENERAL.—In the case of a quali- 11 fied artistic charitable contribution— 12 ‘‘(i) the amount of such contribution 13 shall be the fair market value of the prop- 14 erty contributed (determined at the time of 15 such contribution), and 16 ‘‘(ii) no reduction in the amount of 17 such contribution shall be made under 18 paragraph (1). 19 ‘‘(B) QUALIFIED ARTISTIC CHARITABLE 20 CONTRIBUTION.—For purposes of this para- 21 graph, the term ‘qualified artistic charitable 22 contribution’ means a charitable contribution of 23 any literary, musical, artistic, or scholarly com- 24 position, or similar property, or the copyright 25 thereon (or both), but only if— 26 VerDate Sep 11 2014 04:57 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793 kjohnson on DSK79L0C42 with BILLS 3 •HR 1793 IH ‘‘(i) such property was created by the 1 personal efforts of the taxpayer making 2 such contribution no less than 18 months 3 prior to such contribution, 4 ‘‘(ii) the taxpayer— 5 ‘‘(I) has received a qualified ap- 6 praisal of the fair market value of 7 such property in accordance with the 8 regulations under this section, and 9 ‘‘(II) attaches to the taxpayer’s 10 income tax return for the taxable year 11 in which such contribution was made 12 a copy of such appraisal, 13 ‘‘(iii) the donee is an organization de- 14 scribed in subsection (b)(1)(A), 15 ‘‘(iv) the use of such property by the 16 donee is related to the purpose or function 17 constituting the basis for the donee’s ex- 18 emption under section 501 (or, in the case 19 of a governmental unit, to any purpose or 20 function described under subsection (c)), 21 ‘‘(v) the taxpayer receives from the 22 donee a written statement representing 23 that the donee’s use of the property will be 24 VerDate Sep 11 2014 04:57 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793 kjohnson on DSK79L0C42 with BILLS 4 •HR 1793 IH in accordance with the provisions of clause 1 (iv), and 2 ‘‘(vi) the written appraisal referred to 3 in clause (ii) includes evidence of the ex- 4 tent (if any) to which property created by 5 the personal efforts of the taxpayer and of 6 the same type as the donated property is 7 or has been— 8 ‘‘(I) owned, maintained, and dis- 9 played by organizations described in 10 subsection (b)(1)(A), and 11 ‘‘(II) sold to or exchanged by 12 persons other than the taxpayer, 13 donee, or any related person (as de- 14 fined in section 465(b)(3)(C)). 15 ‘‘(C) MAXIMUM DOLLAR LIMITATION; NO 16 CARRYOVER OF INCREASED DEDUCTION.—The 17 increase in the deduction under this section by 18 reason of this paragraph for any taxable year— 19 ‘‘(i) shall not exceed the artistic ad- 20 justed gross income of the taxpayer for 21 such taxable year, and 22 ‘‘(ii) shall not be taken into account in 23 determining the amount which may be car- 24 VerDate Sep 11 2014 04:57 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793 kjohnson on DSK79L0C42 with BILLS 5 •HR 1793 IH ried from such taxable year under sub- 1 section (d). 2 ‘‘(D) ARTISTIC ADJUSTED GROSS IN- 3 COME.—For purposes of this paragraph, the 4 term ‘artistic adjusted gross income’ means 5 that portion of the adjusted gross income of the 6 taxpayer for the taxable year attributable to— 7 ‘‘(i) income from the sale or use of 8 property created by the personal efforts of 9 the taxpayer which is of the same type as 10 the donated property, and 11 ‘‘(ii) income from teaching, lecturing, 12 performing, or similar activity with respect 13 to property described in clause (i). 14 ‘‘(E) PARAGRAPH NOT TO APPLY TO CER- 15 TAIN CONTRIBUTIONS.—Subparagraph (A) shall 16 not apply to any charitable contribution of any 17 letter, memorandum, or similar property which 18 was written, prepared, or produced by or for an 19 individual while the individual is an officer or 20 employee of any person (including any Govern- 21 ment agency or instrumentality) unless such 22 letter, memorandum, or similar property is en- 23 tirely personal. 24 VerDate Sep 11 2014 04:57 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1793.IH H1793 kjohnson on DSK79L0C42 with BILLS 6 •HR 1793 IH ‘‘(F) COPYRIGHT TREATED AS SEPARATE 1 PROPERTY FOR PARTIAL INTEREST RULE.—In 2 the case of a qualified artistic charitable con- 3 tribution, the tangible literary, musical, artistic, 4 or scholarly composition, or similar property 5 and the copyright on such work shall be treated 6 as separate properties for purposes of this para- 7 graph and subsection (f)(3).’’. 8 (b) EFFECTIVE DATE.—The amendment made by 9 this section shall apply to contributions made after the 10 date of the enactment of this Act in taxable years ending 11 after such date. 12 Æ VerDate Sep 11 2014 04:57 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H1793.IH H1793 kjohnson on DSK79L0C42 with BILLS