For income tax years commencing on or after January 1, 2016, but before January 1, 2021, the bill allows a private advertising or marketing agency (agency) to deduct from its federal taxable income for state income tax purposes an amount equal to 50% of the costs the agency incurs in donating advertising or marketing services to a local government with fewer than 120,000 residents, for the purpose of advertising or marketing an agritourism activity hosted by or occurring within the boundaries of the local government. An agency that donates a portion of the advertising or marketing services provided for advertising or marketing an agritourism activity and receives compensation from the local government for a portion of such services provided may deduct 50% of only the costs that were donated. An agency is prohibited from deducting more than $10,000 in any income tax year for which the deduction is claimed.
In addition, for income tax years commencing on or after January 1, 2015, but before January 1, 2020, the bill allows a taxpayer who purchases equipment to be used for agritourism purposes to claim an income tax credit in an amount equal to the purchase price of the equipment. A taxpayer is not allowed to claim more than $500 in any income tax year. If the amount of the credit allowed exceeds the amount of the taxpayer's income tax liability for the income tax year during which the purchase was made, the amount of the tax credit may not be refunded, but may be carried forward for up to 5 years.