SB15-127 Summary

• Allows private advertising or marketing agencies to deduct 50% of the cost of donated advertising or marketing services to local governments with fewer than 120,000 residents promoting agritourism activities, capped at $10,000 per taxpayer per year, for tax years 2016-2020.

• Permits agencies that receive partial compensation from local governments to deduct only 50% of the value of services actually donated, not the total services provided.

• Establishes an income tax credit for taxpayers who purchase equipment for agritourism purposes, equal to the purchase price up to $500 per year, for tax years 2015-2019.

• Allows unused agritourism equipment tax credits to be carried forward for up to 5 years if the credit exceeds the taxpayer's income tax liability in the year of purchase.

• Both tax incentive provisions are repealed effective January 1, 2021 (advertising deduction) and January 1, 2021 (equipment credit), with act effectiveness contingent on voter approval in November 2016 if a referendum petition is filed.