H.R. 7245

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7245 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7245

To amend the Internal Revenue Code of 1986 to establish the mass timber 
plant investment credit, the mass timber workforce development credit, 
and the mass timber construction credit.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

January 27, 2026

Ms. Bynum introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to establish the mass timber 
plant investment credit, the mass timber workforce development credit, 
and the mass timber construction credit.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Leveraging Investment in Mass 
Building and Employment with Renewable Timber Act of 2026'' or the 
``LIMBER Timber Act of 2026''.

SEC. 2. MASS TIMBER PLANT INVESTMENT CREDIT.

(a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of subtitle A of the Internal Revenue Code of 1986 is amended by 
inserting after section 48E the following new section:

``SEC. 48F. MASS TIMBER PLANT INVESTMENT CREDIT.

``(a) In General.--For purposes of section 46, the mass timber 
plant investment credit for any taxable year is an amount equal to 30 
percent of the qualified investment with respect to any qualifying mass 
timber plant if the taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the 
qualified investment for any taxable year is the basis of 
eligible property placed in service by the taxpayer during such 
taxable year which is part of a qualifying mass timber plant.
``(2) Certain qualified progress expenditures rules made 
applicable.--Rules similar to the rules of subsections (c)(4) 
and (d) of section 46 (as in effect on the day before the 
enactment of the Revenue Reconciliation Act of 1990) shall 
apply for purposes of this section.
``(c) Definitions.--For purposes of this section--
``(1) Qualifying mass timber plant.--The term `qualifying 
mass timber plant' means a facility for manufacture of mass 
timber.
``(2) Mass timber.--The term `mass timber' means engineered 
wood products formed by bonding or mechanically fastening 
layers, laminations, or elements of wood to for structural 
components capable of bearing gravity and lateral loads, 
including--
``(A) cross-laminated timber,
``(B) glue-laminated timber,
``(C) dowel-laminated timber,
``(D) nail-laminated timber,
``(E) laminated veneer lumber designed for use as a 
primary structural element,
``(F) structural composite lumber and other 
engineered wood products designated as mass timber 
under the International Building Code, and
``(G) such other engineered wood products as the 
Secretary, in consultation with the Secretaries of 
Agriculture and Energy, determine appropriate.
``(3) Eligible property.--The term `eligible property' 
means any property--
``(A) which is necessary for--
``(i) the production of mass timber,
``(ii) re-equipping, expanding, or 
establishing a qualifying mass timber plant,
``(B) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not 
including a building or its structural 
components), but only if such property is used 
as an integral part of the qualifying mass 
timber plant, and
``(C) with respect to which depreciation (or 
amortization in lieu of depreciation) is allowable.
``(d) Termination.--No credit shall be determined under subsection 
(a) for any taxable year beginning after December 31, 2030.''.
(b) Conforming Amendments.--
(1) Section 46 of such Code is amended--
(A) in paragraph (6), by striking ``and'',
(B) in paragraph (7), by striking the period and 
inserting ``, and'', and
(C) by adding at the end the following new 
paragraph:
``(8) the mass timber plant investment credit.''.
(2) Section 49(a)(1)(C) of such Code is amended--
(A) in clause (vii), by striking ``and'',
(B) in clause (viii), by striking the period and 
inserting ``, and'', and
(C) by adding at the end the following new clause
``(ix) the basis of any qualifying mass 
timber plant under section 48F.''.
(3) Section 50(a)(2)(E) of such Code is amended by striking 
``or 48E(e)'' and inserting ``48E(e), or 48F(b)(2)''.
(c) Clerical Amendment.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of subtitle A of such Code is 
amended by inserting after the item relating to section 48E the 
following new item:

``Sec. 48F. Mass timber plant investment credit.''.
(d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SECTION 3. MASS TIMBER WORKFORCE DEVELOPMENT CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. MASS TIMBER WORKFORCE DEVELOPMENT CREDIT.

``(a) In General.--For the purposes of section 38, in the case of 
an eligible taxpayer, the mass timber workforce development credit 
determined under this section for any taxable year is an amount equal 
to 50 percent of the qualified expenses of the taxpayer for the taxable 
year.
``(b) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means a taxpayer in the trade or business of--
``(1) manufacturing mass timber products,
``(2) construction contracting, fabrication, or installing 
mass timber products or structures made from mass timber 
products, or
``(3) architecture and engineering relating to mass timber 
design, installation, or construction.
``(c) Qualified Expenses.--
``(1) In general.--For purposes of this section, the term 
`qualified expenses' means any of the following expenses 
incurred for the purposes of conducting an activity described 
in subsection (b):
``(A) Hiring and recruitment expenses.
``(B) Training expenses.
``(C) Wages paid to an individual participating 
in--
``(i) a registered apprenticeship program 
(as defined in section 3131(e)(3)(B)),
``(ii) a State workforce training program, 
or
``(iii) an industry-recognized training 
program.
``(2) Requirements.--An activity meets the requirements of 
this paragraph if--
``(A) not less than 70 percent of the mass timber 
used to carry out such activity is from sources of mass 
timber certified by the Forest Stewardship Council, the 
Sustainable Forest Initiative, or a State or Federal 
forest managed under an approved forest management 
plan, and
``(B) in the case of a structure constructed by the 
taxpayer, not less than 50 percent of the load-bearing 
structural components must consist of mass timber.
``(3) Limitation.--The amount taken into account with 
respect to any employee of a taxpayer under paragraph (1) for 
any taxable year shall not exceed $8,000.
``(d) Mass Timber.--For purposes of this section, the term `mass 
timber' has the meaning given such term in section 48F(c)(2).
``(e) Termination.--No credit shall be determined under subsection 
(a) for any taxable year beginning after December 31, 2030.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (32), 
by striking the period at the end of paragraph (33) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
``(34) in the case of an eligible taxpayer (as defined in 
section 45U), the mass timber workforce development credit 
determined under section 45U(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45T the following new 
item:

``Sec. 45U. Mass timber workforce development credit.''.
(d) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred after the date of the enactment of 
this section.

SEC. 4. MASS TIMBER CONSTRUCTION CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45V. MASS TIMBER CONSTRUCTION CREDIT.

``(a) In General.--For the purposes of section 38, the mass timber 
construction credit determined under this section for any taxable year 
is an amount equal to the product of--
``(1) the square footage of structures placed in service by 
the taxpayer during the taxable year in the course of the trade 
or business of the taxpayer which meet the requirements of 
subsection (b), multiplied by
``(2) $5.
``(b) Requirements.--
``(1) In general.--A structure meets the requirements of 
this paragraph if--
``(A) not less than 70 percent of the mass timber 
used to construct such structure is from sources of 
mass timber certified by the Forest Stewardship 
Council, the Sustainable Forest Initiative, or a State 
or Federal forest managed under an approved forest 
management plan, and
``(B) not less than 50 percent of the load-bearing 
structural components of such structure consist of mass 
timber.
``(2) Mass timber.--For purposes of this subsection, the 
term `mass timber' has the meaning given such term in section 
48F(c)(2).
``(c) Termination.--No credit shall be determined under subsection 
(a) for any taxable year beginning after December 31, 2030.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (33), 
by striking the period at the end of paragraph (34) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
``(35) the mass timber construction credit determined under 
section 45V(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45T the following new 
item:

``Sec. 45V. Mass timber construction credit.''.
(d) Effective Date.--The amendments made by this section shall 
apply structures placed in service after the date of the enactment of 
this section.
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