This is exciting news for artists! As things are now, when an artist makes a charitable donation of artwork, they only get a tax deduction for the cost of the materials used to create the art rather than the fair market value of the art. This Act could change this to allow artists a deduction for the real value of the art. This applies not only to visual art but also to literature, music and scholarly compositions.
From the College Art Association's site:
The Artist-Museum Partnership Act of 2009, legislation introduced in both houses of Congress, would allow a fair-market-value tax deduction for charitable contributions of literary, musical, artistic, or scholarly compositions to collecting institutions such as museums, libraries, and archives. At present, a donating artist, writer, or composer can only deduct the cost of materials used to create the work, which is not a fair incentive to donate and also hurts the missions of public and nonprofit institutions nationwide to increase public access to these unique creations.
The sponsors of the bill—Senators Patrick Leahy (D-VT) and Robert Bennett (R-UT) for S 405 and Representatives John Lewis (D-GA) and Todd Platts (R-PA) for HR 1126—hope that past enthusiasm for such legislation will grow in the current 111th Congress. Although similar Senate bills have passed five times in previous years, the House version of the bill in the 110th Congress had 111 cosponsors. Now that a new Congress is underway, more cosponsors are needed to help advance the bill.
The American Association of Museums has worked with the Association of Art Museum Directors to provide a draft letter that you can use to encourage your federal lawmakers to cosponsor the bill. With your help, this important legislation for both artists and institutions can move forward.