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Congress·In Committee·H.R. 7245

Congress proposes new tax credits for mass timber factories, worker training, and $5-per-sq-ft buildings

LIMBER Timber Act of 2026

about 2 months ago·View on Congress.gov

Legislative Progress

House
Senate
President
Law

Key Points

  • Creates a tax credit worth 30% of the cost of equipment and other eligible property for factories that make mass timber products.
  • Creates a tax credit worth 50% of certain hiring, recruiting, training, and apprenticeship wages for businesses working with mass timber, with up to $8,000 counted per worker each year.
  • Creates a construction tax credit equal to $5 per square foot for buildings that use mass timber for at least half of key load-bearing parts.
  • To qualify for the workforce and construction credits, at least 70% of the mass timber used must come from certified or approved sustainably managed forests.
  • All three credits would end after 2030, and would apply only after the law is enacted (not retroactively).
TaxesLabor EmploymentSmall BusinessHousingRenewable Energy

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(1)
Farmer Rancher
Neutral
Positive Impacts(3)
Small Business Owner
Helps
Union Member
Helps
Student
Helps

Milestones

2 milestones2 actions
Jan 27, 2026House

Referred to the House Committee on Ways and Means.

Jan 27, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Immediately after enactment

Businesses can start qualifying once the law is enacted (signed).

Plant equipment put into use, qualifying buildings completed, and eligible training/hiring spending after enactment may reduce a company’s federal taxes.

During project planning and construction after enactment

Companies track certification and building-structure rules to qualify for the credits.

To get the credits, builders and employers will likely need paperwork showing at least 70% certified/approved sourcing and (for buildings) at least 50% of load‑bearing parts are mass timber.

Next tax filing after the qualifying costs/property are incurred or placed in service

Credits are claimed on the next federal business tax return that covers the qualifying year.

Even if a project happens this year, the tax benefit usually shows up when the business files its taxes for that year (timing depends on the company’s tax year).

Source Information

Document Type

Congressional Bill

Official Title

LIMBER Timber Act of 2026

Bill NumberHR 7245
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Analysis generated by AI. Always verify with official sources.