Recycling Rewards – Rebates, Grants, and Tax Incentives

Recycling benefits the environment by preserving resources and saving energy, which can reduce carbon emissions and pollution. It can also introduce financial advantages for businesses and organizations via access to a range of rebates, grants, and tax incentives.

There’s currently no federal business tax credit for recycling, but various financial recycling rewards exist in different states, counties, and regions. Eligibility, criteria, and the value of recycling rebates, grants, or tax incentives greatly vary and can change regularly.

It’s best to check the specific terms and conditions for any recycling incentive you’re considering as close to the time of applying as possible. Get an idea of potential financial rewards for recycling by your organization with this introduction to recycling rebates, grants, and tax incentives for businesses in the US.

Businesses that produce large volumes of certain waste materials may qualify for recycling rebates. This is when a recycling company or materials recovery facility (MRF) pays to take the trash materials off your hands – rather than the other way round.

Usually, rebates are only possible for specific types of plastic (such as HDPE and LDPE), cardboard, metal, and other recyclables. This is because there’s value in the materials for recyclers to use when creating new products, so they’re willing to pay for them. Minimum volumes and weights often apply to be eligible for a recycling rebate.

Every US state has its own range of tax incentives. Some of these encourage recycling and waste reduction but are only available to businesses based in the state that meet specific criteria. Check with your state government for any incentives available.

US states such as Iowa, Louisiana, North Carolina, and Nevada have property tax exemptions for recycling machinery and equipment. The exact exemptions and specifics may vary across states. These are a few examples of tax incentives for recycling and waste reduction in some states, though they are subject to change:

• Arizona – the state offers a tax deduction for restaurants that donate food to non-profits serving free meals to people in need.
• Colorado – a tax credit of 25% is available for the wholesale market price of agricultural crops, livestock, eggs, and dairy donated to hunger-relief non-profits. A maximum of $5,000 applies annually.
• Kentucky – corporations can claim a 50% tax credit on any recycling or composting equipment.
• Missouri – a tax credit of 50% of any food donation (below $2,500 annually) to a local food pantry is possible.
• Virginia – the state offers tax credits of 10% of the purchase price to C corporations that buy recycling equipment or machinery.

Businesses can apply for a wide range of grants to support recycling endeavors and programs. Accessibility and eligibility vary depending on all sorts of criteria, including business type, size, location, and other factors. The potential amount of funding awarded also differs based on the specific grant.

Some recycling grants only apply to community organizations or materials recovery facilities (MRFs) that process recyclable materials. Searching for recycling grants available in your local area that your business should be eligible for is a great place to start, as they differ across states, counties, and cities.