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A new North Caroline tax credit is generating renewed interest in an old technology that addresses one of the most common forms of energy loss: waste heat. The state tax credit, barely a month old, covers up to 35 percent of the cost of technology that captures and recycles heat that escapes up the smokestack from energy-intensive industrial processes at phosphate plants, manufacturing facilities and factories. North Carolina is the third state to offer an incentive for cogeneration technology, or combined heat and power. The state is offering a $10,500 version of the incentive for residential applications – the only such incentive in the country – even though commercial technologies are not yet widely available for private home use. N.C. State University estimates that it could save $5 million a year with the technology added to a planned 11-megawatt power plant on its main campus. The plant, to be powered by natural gas and oil, will cost $38 million. The purpose of the incentive is to encourage other industries to try it. To promote the technology, the N.C. Solar Center, N.C. Sustainable Energy Association and N.C. Manufacturers and Chemical Industry Council will include a session on the technology and new tax credit during an energy conference in November.