H.R. 7245: Leveraging Investment in Mass Building and Employment with Renewable Timber Act of 2026

This bill, titled the Leveraging Investment in Mass Building and Employment with Renewable Timber Act of 2026, aims to establish several tax credits related to mass timber. These tax credits are designed to encourage investment in, development of, and construction using mass timber, which is a type of engineered wood product.

1. Mass Timber Plant Investment Credit

The first part of the bill introduces the Mass Timber Plant Investment Credit, allowing for a tax credit equal to 30% of the qualified investments made in a qualifying mass timber plant. The key elements include:

• Qualified Investment: This includes the costs associated with purchasing and doing construction for property involved in the production of mass timber.
• Qualifying Mass Timber Plant: This refers to facilities dedicated to manufacturing mass timber products such as cross-laminated timber and glue-laminated timber.
• Eligible Property: This is defined as tangible property essential for manufacturing mass timber, which can be depreciated for tax purposes.
• Expiration Date: The credit would be available for taxable years up to December 31, 2030.

2. Mass Timber Workforce Development Credit

The second component creates the Mass Timber Workforce Development Credit, which offers a credit worth 50% of qualified expenses related to workforce development in the mass timber industry. Key aspects include:

• Eligible Taxpayer: This includes businesses engaged in manufacturing, construction, or design involving mass timber products.
• Qualified Expenses: These can cover hiring, training, and wages for workers in approved training programs, provided certain requirements are met regarding the sources of mass timber used.
• Limitations: The expense cap per employee for the credit is set at $8,000.
• Expiration Date: Similar to the plant investment credit, this will also expire after December 31, 2030.

3. Mass Timber Construction Credit

The last feature is the Mass Timber Construction Credit, which provides a credit calculated based on the square footage of buildings constructed using mass timber. Notable items include:

• Credit Amount: It is based on $5 per square foot for qualifying structures.
• Requirements: At least 70% of the mass timber used must come from certified sources, and at least 50% of the load-bearing components must consist of mass timber.
• Expiration Date: This credit also terminates after December 31, 2030.

Relevant Companies

• NRG: As a company involved in environmental sustainability, NRG could leverage these credits to expand into mass timber investments as part of a broader strategy toward green building initiatives.
• BMC Stock Holdings, Inc. (BLD): A supplier of building materials which may see increased demand for mass timber products, impacting their inventory and potential partnerships with manufacturers seeking to utilize these tax credits.