Lawmakers Introduce Bill to Incentivize Mass Timber

The proposed legislation creates new federal investment tax credits for mass timber manufacturing facilities.

Updated on Oct. 22, 2026 in Construction

Lawmakers Introduce Bill to Incentivize Mass Timber

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Should the federal government offer tax credits to manufacturers to help lower housing construction costs?

Representatives Andrea Salinas and Glenn Thompson have introduced H.R. 10852, a bill aimed at boosting mass timber production through new tax incentives. The legislation seeks to address construction costs and housing availability by providing financial support for both facilities and research.

Why it matters

The bill aims to accelerate housing construction and lower overall building costs by incentivizing the use of sustainable mass timber materials. By extending tax eligibility, supporters hope to bridge the gap between current manufacturing capabilities and long-term infrastructure needs.

The bill proposes a 10% investment tax credit for mass timber facilities and a 20% credit for related research expenses. This compares to the 35% investment tax credit currently available to semiconductor manufacturing plants.

The players

Andrea Salinas

Representative Andrea Salinas serves as a member of the United States House of Representatives representing Oregon.

Glenn Thompson

Representative Glenn Thompson is a member of the United States House of Representatives representing Pennsylvania.

House Ways and Means Committee

The House Ways and Means Committee is the chief tax-writing committee of the United States House of Representatives.

The details

H.R. 10852 allows mass timber facilities to qualify for the advanced manufacturing investment credit, with eligibility extended for projects starting construction through the end of 2031. The legislation was officially referred to the House Ways and Means Committee for review.

October 19, 2026: The bill was referred to the House Ways and Means Committee.
End of 2026: This marks the original construction deadline for projects under existing tax credit rules.
End of 2031: This is the new proposed construction deadline for tax credit eligibility under the bill.

Market Landscape

This legislation follows a pattern set by the CHIPS and Science Act by attempting to apply an investment tax credit model to the domestic mass timber sector. It reflects a broader shift toward using federal manufacturing incentives to secure supply chains for specific industrial materials.

If passed, the bill could lower housing construction costs, potentially making new home builds more affordable for consumers. It specifically targets manufacturing expansion rather than direct retail price caps on finished homes.

The takeaway

Legislators are increasingly turning to sector-specific tax credits to solve industrial capacity issues that contribute to housing shortages. Homebuilders and developers should monitor the committee process to see if these incentives materialize in the upcoming fiscal cycle.