Overview

• Creates three federal tax credits to boost the mass timber construction industry
• Tax credits expire December 31, 2030
• Bill introduced January 27, 2026 by Rep. Janelle Bynum (D-OR)
• Currently in House Ways and Means Committee

Who does this affect?

• Main groups: Mass timber manufacturers, construction companies, architects and engineers who work with mass timber, workers in registered apprenticeship or training programs
• Who benefits: Companies building mass timber factories get 30% tax credit on equipment and property costs. Construction firms get $5 per square foot for buildings using mass timber. Businesses get 50% tax credit on worker training costs (up to $8,000 per employee per year)
• Teen impact score: 3/10 (minimal connection via potential future buildings and indirect job creation)

What This Bill Does

• Plant investment credit: 30% tax credit on costs for equipment and property used to produce mass timber or expand existing facilities. Credit applies to tangible property necessary for production, excluding building structures themselves
• Workforce development credit: 50% tax credit on hiring, recruitment, and training expenses for mass timber industry workers. Covers wages for workers in registered apprenticeships, state workforce programs, or industry training programs. Capped at $8,000 per employee annually
• Construction credit: $5 per square foot tax credit for buildings placed in service that meet sustainability requirements. Requires 70% of mass timber from certified sustainable sources (Forest Stewardship Council, Sustainable Forest Initiative, or state/federal managed forests). Requires 50% of load-bearing structural components to be mass timber
• Mass timber defined as: Cross-laminated timber, glue-laminated timber, dowel-laminated timber, nail-laminated timber, laminated veneer lumber, structural composite lumber, and other engineered wood products approved by Interior Secretary in consultation with Agriculture and Energy Secretaries

Legislative Status

• Introduced in House January 27, 2026
• Referred to House Ways and Means Committee (handles tax legislation)

In short

• Three new tax credits encourage businesses to manufacture, train workers for, and build with mass timber
• Mass timber is engineered wood product used as alternative to steel and concrete in construction
• All credits require using sustainably sourced wood (70% certified) and expire after 2030
• Companies can claim credits on tax returns for qualifying investments, training expenses, or construction projects
• Bill targets environmental goals by promoting renewable building materials

Why should I care?

This bill uses tax incentives to grow a newer construction industry focused on engineered wood products. Mass timber supporters say it reduces carbon emissions compared to steel and concrete, supports forest management, and creates manufacturing jobs. The tax credits lower business costs for companies adopting this building method. Over time, this could influence what materials are used for schools, offices, and apartments. The workforce training credit specifically funds apprenticeships and job training programs. However, the direct impact on most people's lives is minimal since these are business tax breaks, not programs teens or families directly use. The environmental and job creation effects would take years to materialize.