"Artist Deduction Bill" - the "Artist-Museum Partnership Act" - H.R. 1524/S. 548

The way the tax code is now, when an artist donates an artwork, all he or she can write off is the value of the materials used to create the artwork. Yet, art collectors and investors who donate art are able to write off the fair market value of the artwork.

Art collectors are being treated differently than the artists. If the Artist Museum Partnership Act passes, then artists will be able to also donate the fair market value.

Therefore, an artist is more likely to write a check to a charity, rather than donate artwork. Nonprofits across America that depend on art donations for their fundraising efforts are hurt by the current tax code.

To clarify, just say an artist has an oil painting that is worth $1,500, but then the artist realizes that he can only write off from his taxes the cost of supplies (let's pretend in this case it's $20). Most of the time, an artist would prefer to keep the artwork, because after all it may sell - and just write a check for $20 and not donate the artwork, which the non-profit could gain $1,500 from auctioning. In this scenario, the charitable organization would end up getting 20 bucks, not something worth $1,500.

This bill is in the first stage of the legislative process where the bill is considered in committee and may undergo significant changes in markup sessions. The bill has been referred to the following committees: House Ways and Means

Last updated: 25 March 2008
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If you would like to VOICE YOUR SUPPORT for the Artist Deduction Bill to your member of Congress, visit Americans for the Arts to fill out your name and address on the on screen template and your message will be sent to Congress.

"The Artist-Museum Partnership Act (commonly known as the 'Artist Deduction bill') has been gaining co-sponsors since it was re-introduced earlier this year. The House bill H.R. 1524 introduced by Reps. John Lewis (D-GA) and Jim Ramstad (R-MN) now has 50 co-sponsors. Additionally, the Senate bill S. 548 introduced by Sens. Patrick Leahy (D-VT) and Robert Bennett (R-UT) has 23 co-sponsors.

The legislation supports individual artists by allowing them to take a fair-market value tax deduction for tangible works they donate to nonprofit collecting and educational organizations, and it benefits the public by giving them access to more art. Many of the cosponsors are legislators who sit on the tax-writing committees, which would demonstrate a real interest in approving this legislation."