The Honorable Lawrence Summers
   Secretary
   Department of the Treasury
   1500 Pennsylvania Ave., NW
   Washington, DC 20220
   Dear Secretary Summers:
   [1] I am writing to bring your attention to a tax bill that I
   introduced in June. The Artist-Museum Partnership Act, S. 2781, would
   allow creators of literary, musical, artistic and scholarly
   compositions to take a tax deduction equal to the fair market value of
   a work donated to a qualified charitable institution. Under current
   law, collectors may take such a deduction for donated works, but
   creators of similar works may only deduct the cost of supplies --
   paint, canvas, ink, paper, etc. -- which is, in nearly all cases, a
   nominal amount. My bill would end this discrimination against artists,
   restore tax equity, and help to preserve our nation's cultural
   heritage by encouraging artists to donate works to museums during
   their lifetimes rather than sell them to a private party.
   [2] Last November, Representative Amo Houghton introduced an identical
   measure, the Artists' Contribution to American Heritage Act of 1999,
   H.R. 3249, which now has 45 cosponsors. My bill also has bipartisan
   support in the Senate. Recently, the Joint Committee of Taxation
   estimated that the House bill would cost $ 18 million over 5 years and
   $ 48 million over 10 years. For your reference, I have enclosed a copy
   of the score from the Joint Committee. I have also enclosed a copy of
   the bill and my statement of introduction.
   [3] Encouraging creators of literary, musical, artistic and scholarly
   compositions to donate their works to cultural institutions will help
   us hold onto important works for future generations. With your
   leadership in the Treasury Department, it is my hope that this
   bipartisan initiative can become law as part of a larger tax bill this
   year.
   [4] If you have any questions about this legislation, please let me
   know, or contact Jen Bird (224-2414) with my staff.

                                     Sincerely,

                                     PATRICK LEAHY
                                     United States Senate
                                     Washington D.C.
   PJL/jlb
   Enclosures