Congress Introduces Bill to Expand Mass Timber Production
New legislation aims to incentivize domestic manufacturing and research to lower housing construction costs nationwide.
Updated on Oct. 26, 2026 in Manufacturing
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Members of Congress introduced the Mass Timber Growth and Innovation Act to boost domestic timber production through significant new tax credits. The bill seeks to strengthen U.S. manufacturing capabilities and address high construction costs by expanding the Advanced Manufacturing Investment Credit.
Why it matters
Limited domestic manufacturing capacity has contributed to elevated mass timber prices, hampering widespread adoption in building projects. By subsidizing facility investments and research, lawmakers hope to lower housing construction costs while creating demand for American-grown wood.
The bill proposes a 10 percent tax credit for investments in mass timber manufacturing facilities and a 20 percent credit for corporate research expenditures. These measures add mass timber to the existing Advanced Manufacturing Investment Credit.
The players
American Wood Council
This trade association represents the wood products industry and supports policies that promote the use of wood in construction.
Weyerhaeuser
As one of the world's largest private owners of timberlands, this company operates extensively in the wood products sector.
Chamber of Progress
This center-left tech industry coalition advocates for policies that promote economic growth and innovation.
The details
The legislation is designed to bolster supply chains by incentivizing companies to invest in dedicated mass timber facilities and advanced research. Industry groups including Weyerhaeuser and the American Wood Council have publicly endorsed the initiative.
Timeline
October 26, 2026: The bill was officially introduced to the U.S. House of Representatives.
Market Landscape
The Mass Timber Growth and Innovation Act integrates timber manufacturing into the framework of the Advanced Manufacturing Investment Credit. This move shifts market incentives to favor domestic production over reliance on external supply chains, positioning U.S. firms against global competitors.
By lowering construction costs, this legislation could eventually result in more affordable housing options for consumers and families. Increased domestic production capacity may also provide more stable supply chains for new building projects across the country.
The takeaway
This legislative effort signals a major push to modernize domestic construction through wood-based engineering. Homeowners and developers should watch for how these tax credits influence future building material costs.
Further reading
Learn more about industrial policy and sector growth on the United States Manufacturing section page.
More information
Read the full text of the bill to understand the specific provisions of the proposal.
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Should the federal government offer tax credits to businesses to help lower housing construction costs?
