New Jersey · Recycling · NJ-REC-001
Recycling Equipment Credit
Publication revised September 24, 2026. Sourcebook page 192.
Credit amount / calculation
Credit based on eligible recycling equipment under current corporation business tax rules.
Business fit and eligible activity
Potentially useful for qualifying recycling machinery at a forest-products plant. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
A wood-products plant may have an eligible project when it installs equipment to process a qualifying waste stream into a saleable product. In-plant reuse of ordinary production residuals is not automatically enough.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Confirm that the state treats both the material and the specific equipment as qualifying recycling activity.
Official sources
- nj.gov — NJ Division of Taxation (nj.gov)
Related programs
Effluent Treatment Equipment Credit
Credit based on qualifying effluent-treatment equipment
Potentially relevant to wood-treatment or industrial facilities installing certified treatment equipment.
Manufacturing Equipment and Employment Investment Credit
Credit based on qualifying manufacturing equipment
Manufacturers buying qualified equipment and increasing employment can program also requires investment, satisfy both tests.
New Jobs Investment Tax Credit
generally
Qualifying new-facility investment and new employment can generate credits in installments.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.