Promotion expense is the cost of items given away to customers. Examples of promotions are handing out free product samples or offering a free snow removal to the consuming public. The cost of these actions can then be deducted as a business expense; it is usually classified as a marketing expense. The amount of promotion expense is the cost of the goods or services given away; it is not the market value of these items.
Promotion expense is a valid tax-deductible expense on an organization's tax return.