Tax Incentives for Recycling

Beyond the specifics listed below, many states have tax credits that apply to new business in general, to business expansions, or to businesses locating in certain predesignated areas. Always, consult with state commerce, economic development, or tax offices to learn the details of state law.

Arizona

Income tax credit of 10% of installed cost, up to lesser of 25% of total tax liability or $5,000.

Arkansas

Thirty percent tax credit on income/corporate taxes for purchase of equipment making products with at least 10% recycled content.

California

Banks and corporations may take a 40% tax credit for purchase of certain equipment to manufacture recycled products with minimum 50% secondary content and 10% post consumer content. Development bonds for manufacturing products with recycled materials.

Colorado

Up to 20% tax credit for purchase of certain equipment to make products using post-consumer recycled materials. Special credits for plastic recycling.

Delaware

Corporate tax credits for investments and for job creation for use of minimum of 25% secondary materials removed from in-state waste stream. Reductions in gross receipts tax also apply. Corporate tax credits also available for source reduction activities and for processors and collectors of recyclable materials.

Florida

Sales tax exemption on recycling machinery. Tax incentives to encourage affordable transportation of recycled goods from collection points to sites for processing and disposal.

Idaho

Tax credits for equipment used to manufacture products made from recycled paper, plastic, or glass.

Illinois

Sales tax exemption for manufacturing equipment.

Indiana

Property tax exemption for buildings, equipment, and land involved in converting waste into new products.

Iowa

Sales tax exemptions for recycling equipment.

Kansas

Tax abatement for equipment used to manufacture products made with at least 25% post-consumer material.

Kentucky

Property and income tax credits to encourage recycling industries.

Louisiana

Corporation and franchise tax credits for purchase of qualified recycling equipment; corporate and personal income tax credits for purchase of equipment to recycle CFCs used as refrigerants.

Maine

Corporate tax credits equal to 30% of cost of recycling equipment and machinery. Tax credits of up to $5.00 per ton of wood waste from lumber products used as fuel or to generate heat.

Maryland

Individual and corporate income credit for expenses incurred to convert a furnace to burn used oil or to buy and install equipment to recycle used Freon.

Minnesota

Sales tax exemptions for recycling equipment.

Montana

Tax credit of 25% on purchase of equipment to process recyclable materials; up to 5% off income taxes for purchase of business-related products made with recycled materials.

New Jersey

Investment tax credit of 50% for recycling vehicles and machinery; 6% sales tax exemption on purchases of recycling equipment.

New Mexico

Tax credits on equipment to recycle or use recycled materials in a manufacturing process.

North Carolina

Industrial and corporate income tax credits and exemptions for equipment and facilities.

Oklahoma

Income tax credit of 15% on purchase of equipment and facilities to use recyclable materials in a product.

Oregon

Individual and corporate income tax credits for capital investment in recycling equipment and facilities. Special credits for plastic recycling.

South Carolina

Scrap metal dealers defined as manufacturers for sales tax purposes and exempted from electricity and fuel sales taxes.

Texas

Sludge recycling corporations eligible for franchise tax exemptions.

Virginia

Individual and corporate income tax credits of 20% of the purchase price of machinery and equipment for processing recyclable materials. Manufacturing plants using recycled products are eligible for a 10% tax credit.

Washington

Motor vehicles are exempt from rate regulation when transporting recovered materials from collection to reprocessing facilities and manufacturers.

West Virginia

Disposal-tax waivers for commercial recyclers who reduce their solid waste by 50%.

Wisconsin

Sales tax exemptions for waste reduction and recycling equipment and facilities; business property tax exemptions for same equipment.

 

For more information you can check other resources like: PaperMatcher: A Directory of Paper Recycling Resources by American Forest & Paper Association. Get it free by calling (800) 878-8878; American Recycling Market Directory, by calling (800) 267-0707.



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