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
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 scrap 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.
“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