TaxSrv wrote:

A vendor may contribute say
avionics to get advertising value out of the promotion, but their tax
deduction is only the manufacturing cost of the avionics.

Another way to put this is that they get no deduction at all, since all
manufacturing costs are written off as expenses. The donation simply reduces
their income beyond what it would've been had they sold the equipment.

George Patterson
Coffee is only a way of stealing time that should by rights belong to
your slightly older self.