Forest ProductsTax Credit Sourcebook

North Carolina · Recycling / Large Project · NC-RECY-001

Tax Incentives for Major Recycling Facilities

Publication revised September 24, 2026. Sourcebook page 209.

Credit amount / calculation

Credit package under Article 3C for qualifying major recycling facilities.

Business fit and eligible activity

Only very large qualifying recycling facilities will meet the scale requirements. 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

Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.

Official sources

Related programs

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