Page 11 of the Rulebook: “You must collect income if you can, but all other parts of the turn sequence are voluntary.”
Bonus income from NOs is income, so it must also be collected.
Let’s say a country has only 1 build possible. Meaning, the country in question removes enough damage markers to give it 1 build. Can they build 1 Inf and 1 IC, if the IC is to be placed in another territory? Or, do they need 2 builds?
He can build 1 IC and 1 INF. The damage markers only indicate the limited production of a damaged IC.
A newly built IC is considered to be build in a new territory, with the resources and manpower available of the country it is in.