text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Artists' Contribution to American 
  Heritage Act of 1999''.
  
  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:
              ``(7) 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.
target: Limits such increased deduction to the donor's artistic adjusted income (as defined by this Act)..
feat_title: Artists' Contribution to American Heritage Act of 1999