LIMBER Timber Act of 2026

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:

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.

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.

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.

For purposes of this section—

The term qualifying mass timber plant means a facility for manufacture of 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.

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.

No credit shall be determined under subsection (a) for any taxable year beginning after December 31, 2030.

(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).

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:

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

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:

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.

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.

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.

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.

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.

For purposes of this section, the term mass timber has the meaning given such term in section 48F(c)(2).

No credit shall be determined under subsection (a) for any taxable year beginning after December 31, 2030.

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).

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:

The amendments made by this section shall apply to expenses paid or incurred after the date of the enactment of this section.

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:

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.

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.

For purposes of this subsection, the term mass timber has the meaning given such term in section 48F(c)(2).

No credit shall be determined under subsection (a) for any taxable year beginning after December 31, 2030.

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).

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:

The amendments made by this section shall apply structures placed in service after the date of the enactment of this section.