IC-DISC for Scrap Exporters
Your Scrap Exports Are Leaving Tax Savings on the Table
If your company exports scrap metal, recycled materials, or secondary commodities, the IC-DISC program could save you $100,000 or more per year in taxes. It's a legitimate tax incentive that's been in the Internal Revenue Code since 1971, and most scrap exporters have never heard of it.
Scrap Exporter Savings Example
Based on ~2.3% of qualified exports, net of fees. Actual savings vary.
Why Scrap Exporters Are Ideal IC-DISC Candidates
The scrap and recycling industry checks every box for IC-DISC eligibility, and the high export volumes typical of the industry mean substantial savings.
U.S.-Sourced Product
Scrap metal and recycled materials collected and processed in the United States qualify as U.S. content. Your product inherently meets the 50% U.S. content requirement.
High Export Volumes
The U.S. is one of the world's largest scrap exporters. Most scrap companies shipping internationally easily exceed the $3 million annual threshold where the IC-DISC becomes highly beneficial.
Privately Held
Most scrap and recycling operations are privately held: family businesses, partnerships, or closely-held corporations. That's exactly the ownership structure where the IC-DISC delivers the greatest tax savings.
Consistent Export Revenue
Scrap exports tend to be steady, recurring revenue streams. That means IC-DISC savings are predictable and compound year after year, not a one-time benefit.
What Scrap Exports Qualify?
Qualified exports are products containing more than 50% U.S. content, sold to an ultimate destination outside the United States. For scrap exporters, this typically includes:
- Ferrous scrap:steel, iron, and other ferrous metals
- Non-ferrous scrap:copper, aluminum, brass, zinc, nickel, lead
- Recycled materials:processed and baled materials for export
- Secondary commodities:stainless steel, specialty alloys, precious metals
- Indirect exports:scrap sold to a domestic buyer who then exports it
Note: Even if you sell to a domestic trading company or broker who then exports the material, those sales may qualify as indirect exports for IC-DISC purposes. This is an area where many scrap companies are leaving money on the table.
Quick Qualification Check
Export (directly or indirectly) $3M+ annually?
Scrap sourced and processed in the U.S.?
Company is privately held?
If you checked all three, you're a strong candidate.
How We Work with Scrap Exporters
Scrap exporters deal with mixed grades, fluctuating commodity prices, and complex multi-buyer shipments. We understand these dynamics because we've worked with scrap companies since 2006. Our systems are built to handle the transaction volume and invoice complexity typical of the recycling industry.
We work alongside your existing CPA — no disruption to your accounting relationships. Your CPA handles everything else while we focus exclusively on maximizing your IC-DISC benefit.
Export Revenue Mapping
We analyze your shipment records across grades and buyers to identify all qualifying export revenue — including indirect exports through domestic trading companies.
IC-DISC Formation & Commission Structure
We set up your IC-DISC entity and design the commission structure around your specific mix of ferrous, non-ferrous, and secondary commodities to maximize the benefit.
Annual Optimization & Multi-Grade TxT
Each year we re-run the commission calculation using Transaction-by-Transaction analysis across your full product mix — because the optimal method often varies by grade and buyer.
“Most scrap exporters we talk to have never heard of the IC-DISC. Once they see the numbers, the only question is 'why didn't we do this sooner?'”
David Spray
Founder, Export Advisors