In France, there is a little-known mechanism for companies that allows them to purchase one or more works by a living artist. According to Article 238 bis AB of the General Tax Code, in fact, "companies that purchase [...] original works by living artists and enter them in a fixed asset account may deduct from the income of the year of acquisition and the four following years, in equal fractions, a sum equal to the acquisition price."

The acquisition, as Marc-Olivier Deblanc, founding partner at Barnett (partner of BAD+, Bordeaux+Art+Design 2023) reminds us, must concern an original work of art as defined in article 98A appendix III of the French General Tax Code (paintings, engravings, statues and sculptures, hand-woven tapestries, ceramics, photographs) by an artist living at the time of the purchase. It is also specified that the work acquired must "be exhibited and made accessible to the public [in a museum, an art centre, etc.] or to the company's employees for a minimum period corresponding to the time remaining in the year of acquisition and the four following years.

A tool under threat?

This article was created in 1987 with the law on the development of patronage, and was integrated into the 2003 law on patronage. However, it was subject to a time limit (December 31, 2022) in order to determine to what extent it was really effective. "We have endeavoured to defend this tool" explains Gaëlle de Saint-Pierre, co-delegate general of the Professional Committee of Art Galleries. "This device system is essential for the sector: many artists and gallery owners sell to companies". And the Professional Committee of Art Galleries has won its case, since the 2023 Finance Bill has given the scheme additional time, which will now run until 2025.

A territorial anchorage

"We want all the companies in Bordeaux and the region to know about this scheme and to use it", explains BAD+ artistic advisor Adrien de Rochebouët. "Art is a very good tool for internal and external communication". Moreover, "Bordeaux is the second city in France after Paris that creates companies and is one of the densest centres of wealth in France, whose wine, land and industrial assets testify to a consistent economic health", explains the founder and director of the BAD+ fair Jean-Daniel Compain. "With BAD+, we want to accompany companies and also start-ups in their purchase of works by living artists and, why not, start building their first collection!".

SMEs and VSEs concerned

Another important point: it is not necessary to be a large company to acquire works of art by living artists. A study carried out by the Maison des Artistes indicates that more than 90% of the works sold by artists to companies cost less than 10,000 euros and 75% less than 5000 euros. Small and medium-sized companies can therefore buy art and some do so with a budget allocated to such acquisitions of 50,000 euros per year.

Marine Vazzoler – Beaux Arts Magazine