Congress hands timber industry $billions in tax credits through 2030
H.R. 7245 — LIMBER Timber Act of 2026 · Filed by Janelle Bynum (D-OR) · Introduced Jan 27, 2026 · Referred to committee
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What it does
The LIMBER Timber Act creates three federal tax credits to incentivize mass timber manufacturing and construction: a 30% investment credit for building mass timber plants (through 2030), a 50% credit for workforce training and hiring in mass timber industries (capped at $8,000 per employee), and a $5-per-square-foot credit for constructing buildings with at least 50% mass timber load-bearing components. The credits require that at least 70% of mass timber come from certified sustainable sources.
Why we flagged it
The bill's core mechanism is a targeted tax credit scheme designed to reduce the cost of capital investment and labor for mass timber manufacturers and construction firms. It is functionally a subsidy to a specific industry sector, not a broad public-policy measure.
What the text implies
- The $5-per-square-foot construction credit may incentivize overbuilding or inflated project valuations to maximize tax benefits, with no cap on total credit per project or per taxpayer.
- Sustainable sourcing requirements (70% FSC/SFI certified) may create competitive advantage for large timber firms with established supply chains, potentially disadvantaging smaller regional producers.
The full analysis lists 4 implications of this text.
Who stands to gain
mass timber manufacturers; construction contractors; timber companies with FSC/SFI certification