Donn Zaretsky gives some helpful background on the potential return of fractional gifts of works of art to art museums. The end of the practice sharply curtailed the donations received by museums, and were just one in a number of recent measures which has made it difficult for museums to find traditional revenue streams.
The new bill focuses on these two issues [that the gift be completed in 10 years, and ensuring donors cannot unfairly use the increase in value of a work of art after the initial contribution], and basically tracks the “agreement in principle” among members of the Senate Finance Committee that was described in a New York Times article in July of last year:
First, it was reported that “amendments hammered out by aides to Mr. Schumer and Mr. Grassley would lengthen [the 10-year donation period] to 20 years” — and that’s exactly what the new bill provides.
And second, it was said that Grassley appeared “willing to allow donors to claim deductions for subsequent donations that reflect increases in the value of the portion of the artwork they still own.” That is also now reflected in the bill.