,i #aaeth ,,congress #ast ,session ,h4 ,r4 #afdi ,,in ,,the ,,house ,,of ,,representatives ,march #ba1 #bjag,mrs4 ,dingell introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,small ,business1 ,transportation and ,infrastructure1 the ,judiciary1 ,education and the ,workforce1 ,financial ,services1 and ,agriculture1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to assist entrepreneurs1 support development of the creative economy1 and encourage international cultural exchange1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,comprehensive ,resources for ,entrepreneurs in the ,arts to ,transform the ,economy ,act of #bjag or the ,,create ,act of #bjag4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,support for artists and entrepreneurs ,sec4 #aja4 ,charitable contributions of certain items created by the taxpayer4 ,sec4 #ajb4 ,microloan program expansion4 ,sec4 #ajc4 ,,sba business loans for the creative economy4 ,sec4 #ajd4 ,,sba technical assistance programs4 ,sec4 #aje4 ,arts-focused economic development4 ,sec4 #ajf4 ,arts-focused rural development4 ,sec4 #ajg4 ,international participation in the arts4 ,sec4 #ajh4 ,disaster support for artists through ,,fema4 ,,title ,,ii--,support for the creative economy ,sec4 #bja4 ,modification of rules for charitable contributions of fractional gifts4 ,sec4 #bjb4 ,capital gains tax rate relating to art4 ,,title ,,iii--,creative community development ,sec4 #cja4 ,artist corps4 ,sec4 #cjb4 ,community development entities focused on the arts for purposes of the new markets tax credit4 ,sec4 #cjc4 ,demonstration program on support of local programs that promote creative and performance arts in local economic planning4 ,i ,support for artists and entrepreneurs #aja4 ,charitable contributions of certain items created by the taxpayer 7a7 ,in general ,subsection 7e7 of section #agj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#h7 ,special rule for certain contributions of literary1 musical1 or artistic compositions 7,a7 ,in general ,in the case of a qualified artistic charitable contribution-- 7i7 the amount of such contribution shall be the fair market value of the property contributed 7determined at the time of such contribution71 and 7ii7 no reduction in the amount of such contribution shall be made under paragraph 7#a74 7,b7 ,qualified artistic charitable contribution ,for purposes of this paragraph1 the term qualified artistic charitable contribution means a charitable contribution of any literary1 musical1 artistic1 or scholarly composition1 or similar property1 or the copyright thereon 7or both71 but only if-- 7i7 such property was created by the personal efforts of the taxpayer making such contribution no less than #ah months prior to such contribution1 7ii7 the taxpayer-- 7,i7 has received a qualified appraisal of the fair market value of such property in accordance with the regulations under this section1 and 7,,ii7 attaches to the taxpayer's income tax return for the taxable year in which such contribution was made a copy of such appraisal1 7iii7 the donee is an organization described in subsection 7b77#a77;,a71 7iv7 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 #eja 7or1 in the case of a governmental unit1 to any purpose or function described under subsection 7c771 7v7 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 7iv71 and 7vi7 the written appraisal referred to in clause 7ii7 includes evidence of the extent 7if any7 to which property created by the personal efforts of the taxpayer and of the same type as the donated property is or has been-- 7,i7 owned1 maintained1 and displayed by organizations described in subsection 7b77#a77;,a71 and 7,,ii7 sold to or exchanged by persons other than the taxpayer1 donee1 or any related person 7as defined in section #dfe7;b77#c77;,c774 7,c7 ,maximum dollar limitation2 no carryover of increased deduction ,the increase in the deduction under this section by reason of this paragraph for any taxable year-- 7i7 shall not exceed the artistic adjusted gross income of the taxpayer for such taxable year1 and 7ii7 shall not be taken into account in determining the amount which may be carried from such taxable year under subsection 7d74 7,d7 ,artistic adjusted gross income ,for purposes of this paragraph1 the term artistic adjusted gross income means that portion of the adjusted gross income of the taxpayer for the taxable year attributable to-- 7i7 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 property1 and 7ii7 income from teaching1 lecturing1 performing1 or similar activity with respect to property described in clause 7i74 7,e7 ,paragraph not to apply to certain contributions ,subparagraph 7,a7 shall not apply to any charitable contribution of any letter1 memorandum1 or similar property which was written1 prepared1 or produced by or for an individual while the individual is an officer or employee of any person 7including any government agency or instrumentality7 unless such letter1 memorandum1 or similar property is entirely personal4 7,f7 ,copyright treated as separate property for partial interest rule ,in the case of a qualified artistic charitable contribution1 the tangible literary1 musical1 artistic1 or scholarly composition1 or similar property and the copyright on such work shall be treated as separate properties for purposes of this paragraph and subsection 7f77#c74 4 7b7 ,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 date4 #ajb4 ,microloan program expansion ,section #g7m77#f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77#f77 is amended by adding at the end the following3 7,f7 ,loan criteria for artists and arts entrepreneurs ,the ,administration1 in consultation with eligible intermediaries1 shall develop loan criteria to ensure that small business concerns owned and controlled by artists and small business concerns that support the creative economy receive loan proceeds under this subsection4 4 #ajc4 ,,sba business loans for the creative economy ,section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 is amended by adding at the end the following3 7#ce7 ,creative economy ,in providing assistance under this subsection1 the ,administration shall develop procedures to evaluate the business proposals and business plans of small business concerns that focus on economic development1 job creation1 and community growth with respect to the creative economy4 4 #ajd4 ,,sba technical assistance programs ,section #ba of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh7 is amended by adding at the end the following3 7o7 ,technical assistance programs for artists and arts entrepreneurs ,the ,administration1 in consultation with relevant stakeholders1 shall develop technical assistance programs to be carried out by small business development centers under this subsection that target the specific needs of artists and arts entrepreneurs4 4 #aje4 ,arts-focused economic development ,title ,,ii of the ,public ,works and ,economic ,development ,act of #aife 7#db ,u4,s4,c4 #cada et seq47 is amended by adding at the end the following3 #bai4 ,arts-focused economic development 7a7 ,definitions ,in this section3 7#a7 ,business incubation program ,the term business incubation program means a program that-- 7,a7 accelerates the successful development of entrepreneurial businesses through business support resources and services1 developed or orchestrated by incubator management2 7,b7 is designed to produce successful businesses2 and 7,c7 provides management guidance1 technical assistance1 and consulting designed for young1 growing businesses1 including by providing-- 7i7 rental space and flexible leases2 7ii7 shared basic business services and equipment2 7iii7 technology support services2 and 7iv7 assistance in obtaining financing necessary for growth of the business4 7#b7 ,incubator ,the term incubator means a multitenant facility with on-site management that directs a business incubation program4 7b7 ,arts-,focused economic development ,in providing grants and assistance under this ,act 7including through the local technical assistance1 partnership planning1 and comprehensive economic development strategies programs of the ,economic ,development ,administration71 the ,secretary shall provide to artists and the creative economy support through traditional economic development tools1 including-- 7#a7 incubators2 and 7#b7 economic development planning and technical assistance4 4 #ajf4 ,arts-focused rural development ,the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiba et seq47 is amended by adding at the end the following3 ,j ,arts-,focused economic development #chf;,a4 ,arts-focused economic development 7a7 ,definitions ,in this section3 7#a7 ,business incubation program ,the term business incubation program means a program that-- 7,a7 accelerates the successful development of entrepreneurial businesses through business support resources and services1 developed or orchestrated by incubator management2 7,b7 is designed to produce successful businesses2 and 7,c7 provides management guidance1 technical assistance1 and consulting designed for young1 growing businesses1 including by providing-- 7i7 rental space and flexible leases2 7ii7 shared basic business services and equipment2 7iii7 technology support services2 and 7iv7 assistance in obtaining financing necessary for growth of the business4 7#b7 ,incubator ,the term incubator means a multitenant facility with on-site management that directs a business incubation program4 7b7 ,arts-,focused economic development ,in providing grants and assistance under this ,act 7including through the local technical assistance1 partnership planning1 and comprehensive economic development strategies programs of the ,office of ,rural ,development71 the ,secretary1 acting through the ,under ,secretary for ,rural ,development1 shall provide to artists and the creative economy support through traditional economic development tools1 including-- 7#a7 incubators2 and 7#b7 economic development planning and technical assistance4 4 #ajg4 ,international participation in the arts ,section #bad7;c77#f77;,d7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahd7;c77#f77;,d77 is amended-- 7#a7 in the first sentence1 by inserting 7i7 before ,any person2 7#b7 in the second sentence-- 7,a7 by striking ,once and inserting ,except as provided in clause 7ii71 once2 and 7,b7 by striking ,attorney ,general shall and inserting ,secretary of ,homeland ,security shall2 7#c7 in the third sentence1 by striking ,the ,attorney ,general and inserting ,the ,secretary2 and 7#d7 by adding at the end the following3 7ii7 ,the ,secretary of ,homeland ,security shall adjudicate each petition for an alien with extraordinary ability in the arts 7as described in section #aja7;a77#ae77,o77i771 an alien accompanying such an alien 7as described in section #aja7;a77#ae77,o77ii771 or an alien described in section #aja7;a77#ae77,p7 7other than an alien described in section #bad7;c77#d77;,a7 7relating to athletes77 not later than #ad days after-- 7,i7 the date on which the petitioner submits the petition with a written advisory opinion1 letter of no objection1 or request for a waiver2 or 7,,ii7 the date on which the #ae-;day period described in clause 7i7 has expired1 if the petitioner has had an opportunity to supply rebuttal evidence4 7iii7 ,if a petition described in clause 7ii7 is not adjudicated by the end of the #ad-;day period described in clause 7ii7 and the petitioner is an arts organization described in paragraph 7#c71 7#e71 or 7#f7 of section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code for the taxable year preceding the calendar year in which the petition is submitted1 or an individual or entity petitioning primarily on behalf of such an organization1 the ,secretary of ,homeland ,security shall provide the petitioner with the premium-processing services referred to in section #bhf7u71 without a fee4 4 #ajh4 ,disaster support for artists through ,,fema 7a7 ,in general ,the ,president1 acting through the ,administrator of the ,federal ,emergency ,management ,agency1 shall promulgate rules to ensure that expenses incurred1 as a result of a major disaster or emergency1 by a self-employed or freelance worker1 including a craft artist1 fine artist1 designer1 literary artist1 performing artist1 or musician1 to repair or replace tools needed by the self-employed or freelance worker are considered eligible expenses for assistance under section #djh of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eagd74 7b7 ,requirement ,the rules promulgated under subsection 7a7 may not require1 as a condition of receiving such assistance under section #djh of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eagd71 an applicant-- 7#a7 to apply or be declined for assistance from the ,small ,business ,administration2 or 7#b7 to demonstrate that assistance received from the ,small ,business ,administration does not satisfy the total necessary expenses or serious needs arising out of a major disaster or emergency4 ,,ii ,support for the creative economy #bja4 ,modification of rules for charitable contributions of fractional gifts 7a7 ,income tax 7#a7 ,additional requirements for deduction ,paragraph 7#a7 of section #agj7o7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,denial of deduction in certain cases 7,a7 ,in general ,no deduction shall be allowed for a contribution of an undivided portion of a taxpayer's entire interest in tangible personal property unless-- 7i7 all interests in the property are held immediately before such contribution by-- 7,i7 the taxpayer1 or 7,,ii7 the taxpayer and the donee1 7ii7 in the case of an initial fractional contribution1 such contribution is an undivided portion of not less than #aj percent of all interests in the property1 7iii7 in the case of an initial fractional contribution1 the contribution is made pursuant to a written binding contract which requires the donor-- 7,i7 to contribute not less than #bj percent of all interests in the property on or before the date that is #aa years after the date of the initial fractional contribution1 and 7,,ii7 to contribute all of the interests in such property to the donee 7or if such donee is no longer in existence1 to any person described in subsection 7c77 on or before the earlier of the date of the death of the donor or the date which is #bj years after the date of the initial fractional contribution1 and 7iv7 if the value of the tangible personal property with respect to which the undivided portion of the taxpayer's entire interest relates is greater than #a1jjj1jjj 7or such greater amount as determined by the ,secretary71 the taxpayer attaches to the return for the taxable year in which such contribution is made a statement of value obtained from the ,internal ,revenue ,service4 ,in the case of a donor who dies before the date which is #bj years after the date of the initial fractional contribution1 clause 7iii77,,ii7 is satisfied with respect to such initial fractional contribution if the donor's will specifies that all of the interests in such property will be contributed to the donee before such date4 7,b7 ,exceptions ,the ,secretary may1 by regulation1 provide for exceptions to subparagraph 7,a77i7 in cases where all persons who hold an interest in the property make proportional contributions of an undivided portion of the entire interest held by such persons4 ,such regulations may modify the requirements of clauses 7ii7 and 7iii7 of subparagraph 7,a7 to the extent necessary to carry out the purposes of this subparagraph4 4 7#b7 ,valuation of subsequent gifts ,paragraph 7#b7 of section #agj7o7 of such ,code is amended to read as follows3 7#b7 ,valuation of subsequent gifts ,in the case of any additional contribution1 the fair market value of such contribution shall be determined by using a certified appraisal from the ,art ,advisory ,panel of the ,commissioner of ,internal ,revenue4 4 7#c7 ,recapture of deduction ,paragraph 7#c7 of section #agj7o7 of such ,code is amended-- 7,a7 by redesignating subparagraph 7,b7 as subparagraph 7,c71 and 7,b7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,recapture ,the ,secretary shall provide for the recapture of the amount of any deduction allowed under this section 7plus interest7 with respect to any contribution of an undivided portion of a taxpayer's entire interest in tangible personal property-- 7i7 in any case in which the donor fails to meet the requirements described in paragraph 7#a77;,a77iii71 and 7ii7 in any case where such property is not in the physical possession of the donee 7other than in the case of art which is fragile or unwieldy7 and used in a use which is related to a purpose or function constituting the basis for the donee organization's exemption under section #eja during any applicable period for a period of time which bears substantially the same ratio to #e years as-- 7,i7 the percentage of the undivided interest of the donee in the property 7determined on the day after such contribution was made71 bears to 7,,ii7 #ajj percent4 7,b7 ,applicable period ,for purposes of subparagraph 7,a71 the applicable period means-- 7i7 the #e-year period beginning on the date of the later of the initial fractional contribution1 and 7ii7 each subsequent #e-year period occurring during the #bj-year period described in paragraph 7#a77;,a77iii77,,ii74 4 7b7 ,gift tax 7#a7 ,additional requirements for deduction ,paragraph 7#a7 of section #bebb7;e7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,denial of deduction in certain cases 7,a7 ,in general ,no deduction shall be allowed for a contribution of an undivided portion of a taxpayer's entire interest in tangible personal property unless-- 7i7 all interests in the property are held immediately before such contribution by-- 7,i7 the taxpayer1 or 7,,ii7 the taxpayer and the donee1 7ii7 in the case of an initial fractional contribution1 such contribution is an undivided portion of not less than #aj percent of all interests in the property1 7iii7 in the case of an initial fractional contribution1 the contribution is made pursuant to a written binding contract which requires the donor-- 7,i7 to contribute not less than #bj percent of all interests in the property on or before the date that is #aa years after the date of the initial fractional contribution1 and 7,,ii7 to contribute all of the interests in such property to the donee 7or if such donee is no longer in existence1 to any person described in subsection 7c77 on or before the earlier of the date of the death of the donor or the date which is #bj years after the date of the initial fractional contribution1 and 7iv7 if the value of the tangible personal property with respect to which the undivided portion of the taxpayer's entire interest relates is greater than #a1jjj1jjj 7or such greater amount as determined by the ,secretary71 the taxpayer attaches to the return for the taxable year in which such contribution is made a statement of value obtained from the ,internal ,revenue ,service4 ,in the case of a donor who dies before the date which is #bj years after the date of the initial fractional contribution1 clause 7iii77,,ii7 is satisfied with respect to such initial fractional contribution if the donor's will specifies that all of the interests in such property will be contributed to the donee before such date4 7,b7 ,exceptions ,the ,secretary may1 by regulation1 provide for exceptions to subparagraph 7,a77i7 in cases where all persons who hold an interest in the property make proportional contributions of an undivided portion of the entire interest held by such persons4 ,such regulations may modify the requirements of clauses 7ii7 and 7iii7 of subparagraph 7,a7 to the extent necessary to carry out the purposes of this subparagraph4 4 7#b7 ,recapture of deduction ,paragraph 7#b7 of section #bebb7;e7 of such ,code is amended-- 7,a7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,c7 and 7,d71 respectively1 and 7,b7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,recapture ,the ,secretary shall provide for the recapture of the amount of any deduction allowed under this section 7plus interest7 with respect to any contribution of an undivided portion of a taxpayer's entire interest in tangible personal property-- 7i7 in any case in which the donor fails to meet the requirements described in paragraph 7#a77;,a77iii71 and 7ii7 in any case where such property is not in the physical possession of the donee 7other than in the case of art which is fragile or unwieldy7 and used in a use which is related to a purpose or function constituting the basis for the donee organization's exemption under section #eja during any applicable period for a period of time which bears substantially the same ratio to #e years as-- 7,i7 the percentage of the undivided interest of the donee in the property 7determined on the day after such contribution was made71 bears to 7,,ii7 #ajj percent4 7,b7 ,applicable period ,for purposes of subparagraph 7,a71 the applicable period means-- 7i7 the #e-year period beginning on the date of the later of the initial fractional contribution1 and 7ii7 each subsequent #e-year period occurring during the #bj-year period described in paragraph 7#a77;,a77iii77,,ii74 4 7c7 ,effective date ,the amendments made by this section shall apply to contributions and gifts made after the date of the enactment of this ,act4 7d7 ,transition rule ,in the case of any additional contribution 7as defined in section #agj7o77#d7 of the ,internal ,revenue ,code of #aihf7 with respect to an initial fractional contribution 7as defined in such section7 made after ,august #ag1 #bjjf1 and before the date of the enactment of this ,act-- 7#a7 except for purposes of determining the fair market value of such contribution under section #agj7o77#b7 of the ,internal ,revenue ,code of #aihf 7as amended by this ,act71 such contribution shall be treated as an initial fractional contribution 7as so defined7 subject to the amendments made by this section1 and 7#b7 sections #agj7o77#c77;,a77i7 and #bebb7;e77#c77;,a77i7 of such ,code 7as in effect before the date of the enactment of this ,act7 shall not apply with respect to any prior contribution of an undivided portion of the taxpayer's interest in the property4 #bjb4 ,capital gains tax rate relating to art 7a7 ,exclusion from #bh-,percent rate gain ,subparagraph 7,a7 of section #a7;h77#e7 of the ,internal ,revenue ,code of #aihf is amended by striking paragraph 7#c7 and inserting paragraph 7#b77;,a7 or 7#c74 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 ,,iii ,creative community development #cja4 ,artist corps 7a7 ,corps ,section #abb7;a7 of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abegb7;a77 is amended by adding at the end the following3 7#f7 ,artist ,corps 7,a7 ,in general ,the recipient may carry out national service programs through an ,artist ,corps that identifies and meets unmet needs within communities through artistic activities such as those described in subparagraph 7,b7 and improves performance on the indicators described in subparagraph 7,c74 7,b7 ,activities ,an ,artist ,corps described in this paragraph may carry out activities such as-- 7i7 providing skilled visual and performance artists to address community needs through artistic activities in education1 health care1 and therapeutic settings1 and in other settings in the community2 or 7ii7 providing other artistic activities1 addressing unmet community needs1 that the ,corporation may designate1 such as technical assistance for grant writing1 marketing1 and financial planning4 7,c7 ,artist ,corps indicators ,the indicators for a corps program described in this paragraph are-- 7i7 any indicator relating to meeting critical needs that the ,corporation establishes2 or 7ii7 any local indicator 7applicable to a particular recipient or community and on which an improvement in performance is needed7 relating to meeting critical needs1 that is approved by the ,corporation or a ,state ,commission4 4 7b7 ,conforming amendments ,section #abb of such ,act is amended-- 7#a7 in subsection 7b77#c71 by striking or 7#e7 and inserting 7#e71 or 7#f72 and 7#b7 in subsection 7c77#a71 in the matter preceding subparagraph 7,a71 by striking through 7#e7 and inserting through 7#f74 #cjb4 ,community development entities focused on the arts for purposes of the new markets tax credit 7a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall develop and promulgate guidelines for the creation and operation of qualified community development entities-- 7#a7 which will be eligible to be certified as such by the ,secretary of the ,treasury under section #de;,d7c77#a77;,c7 of the ,internal ,revenue ,code of #aihf2 7#b7 a qualified equity investment in which will1 subject to allocation under section #de;,d7f7 of such ,code1 be eligible for the credit under such section #de;,d2 and 7#c7 which will focus on investment in and the development and encouragement of the creative economy in low-income communities4 7b7 ,definitions ,for purposes of this section1 any term used in subsection 7a7 which is also used in section #de;,d of the ,internal ,revenue ,code of #aihf has the same meaning as when used in such section4 #cjc4 ,demonstration program on support of local programs that promote creative and performance arts in local economic planning 7a7 ,demonstration program required ,the ,secretary of ,commerce shall establish a demonstration program to assess the feasibility and advisability of providing support to covered programs to promote creative and performing arts in the economic planning of local governments4 7b7 ,covered programs ,for purposes of the demonstration program required by subsection 7a71 a covered program is any program that-- 7#a7 was in effect on the day before the date of the enactment of this ,act2 and 7#b7 the ,secretary considers part of an art community4