IC-DISC for Commodity Exporters
Your Commodity Exports Are Leaving Tax Savings on the Table
If your company exports minerals, chemicals, timber, or energy products, 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 commodity exporters have never heard of it.
Commodity Exporter Savings Example
Based on ~2.3% of qualified exports, net of fees. Actual savings vary.
Why Commodity Exporters Are Ideal IC-DISC Candidates
U.S. commodity exporters check every box for IC-DISC eligibility, and the high volumes typical of commodity trade mean substantial savings.
U.S.-Sourced Materials
Raw materials extracted, harvested, or processed in the United States qualify as U.S. content. Your commodities inherently meet the 50% U.S. content requirement.
High Export Volumes
Commodity trade is inherently high-volume. Most commodity exporters easily exceed the $3 million annual threshold where the IC-DISC becomes highly beneficial, and volume is exactly where the IC-DISC shines.
Recurring Shipments
Commodity exports tend to be steady, recurring revenue streams driven by ongoing contracts and global demand. That means IC-DISC savings are predictable and compound year after year.
Privately Held
Many commodity firms (mining operations, chemical producers, timber companies, energy producers) are privately held. That's exactly the ownership structure where the IC-DISC delivers the greatest tax savings.
What Commodity Exports Qualify?
Qualified exports are products containing more than 50% U.S. content, sold to an ultimate destination outside the United States. For commodity exporters, this typically includes:
- Minerals & ores:mined and processed mineral commodities
- Industrial chemicals:petrochemicals, specialty chemicals, and chemical products
- Timber & lumber:raw timber, processed lumber, and wood products
- Energy products:coal, petroleum products, and natural gas derivatives
- Indirect exports:commodities sold to domestic traders who then export
Note: Even if you sell to a domestic trading company, broker, or distributor who then exports the product, those sales may qualify as indirect exports for IC-DISC purposes. This is an area where many commodity companies are leaving money on the table.
Quick Qualification Check
Export (directly or indirectly) $3M+ annually?
Commodities sourced or processed in the U.S.?
Company is privately held?
If you checked all three, you're a strong candidate.
How We Work with Commodity Exporters
Export Advisors has been exclusively focused on the IC-DISC since 2006. We handle everything: setup, administration, commission maximization, and compliance, so you can focus on running your commodity business.
We work alongside your existing CPA. No disruption to your current accounting relationships. Your CPA continues handling everything else while we handle the IC-DISC specialization.
Quick Assessment
We review your export activity to confirm eligibility and estimate savings.
IC-DISC Setup
We form the IC-DISC entity and establish the optimal commission structure.
Ongoing Administration
Proprietary systems keep your IC-DISC running smoothly year after year with annual optimization.
“Commodity exporters deal in volume, and volume is exactly where the IC-DISC shines. The savings scale directly with your export revenue.”
David Spray
Founder, Export Advisors