Mass Timber Growth and Innovation Act
- Sponsor
- Rep. Salinas, Andrea [D-OR-6]
- Committees
- Ways and Means Committee (primary)
- Last action
- Oct 19, 2026
Bottom line
The bill aims to stimulate growth and innovation in the mass timber industry through targeted tax credits for manufacturing investments and research and development, while also extending a broader manufacturing credit.
What it actually does
This bill amends the Internal Revenue Code of 1986 to provide tax incentives for the mass timber industry. It expands the existing advanced manufacturing investment tax credit to include facilities that produce mass timber products, offering a 10% credit. Additionally, it establishes a new 20% tax credit for qualified research expenses related to mass timber products. The bill also extends the eligibility period for the advanced manufacturing credit for all qualifying facilities, including semiconductors, from December 31, 2026, to December 31, 2031.
Proponents argue
Proponents argue that this legislation will foster innovation and growth in the mass timber industry, leading to more sustainable construction practices, increased demand for forest products, and job creation in rural communities. They emphasize the environmental benefits of using timber as a renewable resource and a carbon sink in construction, aligning with climate goals and promoting a greener economy.
Opponents contend
Critics might contend that providing specific tax credits for the mass timber industry could distort market competition, potentially favoring one building material over others without sufficient economic justification. Concerns could also be raised regarding the potential for increased logging if not managed sustainably, or that the benefits of these tax incentives might disproportionately accrue to larger corporations rather than small and medium-sized businesses.
The bill is very concise and can be read and understood quickly by an informed reader, making it accessible for evaluation.
Section 2(a), (b)
Inclusion of Mass Timber in Advanced Manufacturing Credit
This provision expands the definition of an 'advanced manufacturing facility' under Section 48D of the Internal Revenue Code to include facilities primarily engaged in manufacturing mass timber products. These mass timber facilities will qualify for a 10 percent investment tax credit, which is lower than the 35 percent credit available for semiconductor manufacturing facilities.
Supporters argue
Supporters contend that this credit will incentivize critical investments in mass timber production infrastructure, making these sustainable building materials more competitive and widely available. This will drive innovation, create green jobs, and support domestic manufacturing.
Critics contend
Opponents might argue that singling out mass timber for a tax credit creates an uneven playing field for other sustainable building materials or traditional construction methods, potentially leading to market distortions and inefficient resource allocation.
Tradeoffs
The provision balances the desire to promote sustainable building materials with concerns about targeted tax incentives and potential market interference. It also sets a lower credit rate for timber compared to semiconductors, reflecting different strategic priorities.
Section 2(c)
Extension of Advanced Manufacturing Credit Eligibility
This section extends the sunset date for the advanced manufacturing investment credit from December 31, 2026, to December 31, 2031. This extension applies to all facilities eligible for the credit, including both semiconductor and newly added mass timber production facilities, for construction beginning after the original sunset date.
Section 3
New Research and Development Tax Credit for Mass Timber
This provision establishes a new 20 percent tax credit for 'qualified mass timber products research expenses.' This credit is added to the existing research and experimentation tax credit (Section 41(a) of the Internal Revenue Code). It defines 'mass timber products research' broadly to include qualified research on existing mass timber products and similar new or proposed products identified by the Treasury Secretary in consultation with the Secretary of Agriculture.