Factories that make mass timber would qualify for a federal investment tax credit now reserved for semiconductor plants under a bipartisan House bill that its sponsors say would speed up housing construction and lower its cost.
The Mass Timber Growth and Innovation Act, H.R. 10852, from Rep. Andrea Salinas, an Oregon Democrat, and Rep. Glenn Thompson, a Pennsylvania Republican who chairs the House Agriculture Committee, would make mass timber facilities eligible for the advanced manufacturing investment credit at a 10% rate. Chip plants receive 35%. It would also extend the credit to projects that begin construction by the end of 2031, from the end of 2026, and add a 20% credit for mass timber research expenses. The bill was referred to the House Ways and Means Committee on Monday.
The bill defines mass timber products as cross-laminated timber, nail-laminated and glue-laminated timber, laminated strand lumber and laminated hardwood veneer. Such components are made off-site and assembled quickly, which can shorten construction timelines and lower costs, the sponsors said.
"Right now, Oregon needs to build nearly 500,000 new homes over the next 20 years to keep up with demand, but we simply aren't building enough," Salinas said in a statement. "Mass timber can help us build faster and more affordably."
The proposal comes as the industry's fortunes diverge: Timberlab this month made the first panels at its new CLT plant in Oregon, while Stora Enso is closing a CLT line in Sweden after slower-than-expected market growth.