Important Call for Testimony for State House Bill 1642-An Act relative to artistic contributions
Next week the State House Joint Committee on Revenue will hold a hearing and one key bill MALC is following is on its list to be heard!
House Bill 1642-An Act relative to artistic contributions is sponsored by Representative Chris Walsh. The hearing is open to the public and written testimony can also be submitted if you can not testify in person on this bill. If passed, this bill would help artists of all disciplines.
This bill would allow, in many cases, for an artist to deduct an amount equal to the fair market value of a charitable contribution of any literary, musical, artistic, or scholarly composition, or similar property, or the copyright (or both) made during the taxable year to a non profit charitable organization on their state income taxes. Currently artists can only deduct the cost of materials on their state and federal taxes for work they donate to a nonprofit/charitable organization (this is only for donations to collecting institutions and does not cover donations to auctions). Collectors/patrons, however, can deduct the full fair market value of art they donate on their federal and state taxes. (Note there is a federal bill that has be reintroduced that would do this on a federal level if it is passed and H1642 is modeled on the federal bill*)
The hearing details if you wish to testify in person: Tuesday, June 6th, 1pm in Hearing Room B-1 (directions to the State House and directions to hearing room B-1)
MALC is urging people to send in written testimony in support of House Bill 1642-An Act relative to artistic contributions– by next Monday, June 5th, 5pm, so the committee staff can share it with the committee members before the hearing. Please send your written testimony via email to: anthony.sacco@mahouse.gov
MALC is planning on testifying in person and will also be submitting written testimony. Please share this call to action with others!
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How to address your written testimony:
Joint Committee on Revenue
State House
24 Beacon Street
Room 34 & 519
State House
Boston, MA 02133
Dear Members of the Joint Committee on Revenue,
I am writing in support of House Bill 1642-An Act relative to artistic contributions– (explain why you are writing in favor of the bill and and it would benefit you if passes etc.
Your name, address and contact info
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*From the Americans for the Arts website: In 2017, Rep. John Lewis (D-GA) reintroduced the Artist-Museum Partnership Act (HR 1830), which would allow artists to take an income tax deduction for the fair market value of their work when they donate it to charitable collecting institutions.
“Prior to 1969, artists, writers, and composers were allowed to take a fair-market value deduction for their works donated to a museum, library, or archive. In 1969, Congress changed the law, and artists could only deduct the cost of materials used. The number of works donated by artists dramatically declined. The impact was immediate and drastic:
- The Museum of Modern Art in New York received 321 gifts from artists in the three years prior to 1969; in the three years after 1969 the museum received 28 works of art from artists—a decrease of more than 90 percent.
- The biggest loser was the Library of Congress, which annually received 15–20 large gifts of manuscripts from authors. In the four years after 1969, it received one gift.
The Senate has passed artists deduction legislation five times in previous years to allow taxpayers who create literary, musical, artistic, and scholarly compositions or similar property a fair-market value tax deduction for contributions to certain tax-exempt organizations, if such properties are properly appraised and are donated no sooner than 18 months after their creation.”