The LIMBER Act Could Bring US Mass Timber a $5-per-Square-Foot Tax Credit
A 2026 bill in Congress proposes federal tax credits for mass-timber factories, workforce training and qualifying buildings—but it has not become law.
A new bill in the United States Congress could create one of the country’s strongest federal incentives for mass timber. Introduced on 27 January 2026, the LIMBER Timber Act proposes tax credits for manufacturing plants, workforce development and qualifying construction.
The proposal has not become law. H.R. 7245 was introduced in the House of Representatives and referred to the Committee on Ways and Means. Its details may change or the bill may not advance.
Three proposed tax credits
The bill’s text establishes three main incentives. A manufacturing credit would cover 30% of qualified investment in a mass-timber production facility. A workforce credit would cover 50% of qualified training expenses, subject to an annual limit of $8,000 per employee.
The most visible measure for developers is a proposed construction credit of $5 per square foot for qualifying mass-timber buildings.
Eligibility would come with conditions. The current text includes requirements related to the proportion of load-bearing mass timber and to sourcing from certified or otherwise qualifying forest-management systems.
If enacted in its introduced form, the credits would apply for a limited period and terminate after 31 December 2030.
Why the construction credit matters
Mass-timber projects can face higher early-stage costs because teams need specialized engineering, fire analysis, supplier coordination and connection design. A predictable per-square-foot incentive could help offset that premium and make more projects financially competitive.
Factory and training credits would address the other side of the market. More domestic production and a larger skilled workforce could reduce lead times and create stronger regional supply chains.
For digital design platforms, policy support would increase demand for reliable quantity, sourcing and compliance data. A project claiming an incentive must be able to demonstrate what was built, how much qualified timber it contains and where that material came from.
The headline number is compelling, but the distinction is essential: the $5 credit is a proposal, not money currently available to projects. FrameVerk will follow the bill’s progress and any amendments that could affect eligibility.
Source: Congress.gov, H.R. 7245 — LIMBER Timber Act of 2026: https://www.congress.gov/bill/119th-congress/house-bill/7245
