Eligible mass timber factories and research would receive tax credits

Eligible investments in mass timber factories would qualify for a 10% tax credit. Factories must mainly make listed mass timber products or similar timber or lumber identified by federal officials after consulting the agriculture secretary. For construction started before the bill becomes law, only costs tied to construction work on or after that date would count. The property must enter use on or after the date the bill becomes law.

Eligible mass timber research expenses would qualify for a 20% tax credit. Research must concern listed mass timber products or similar new or proposed products identified by federal officials. Research and expenses must meet the tax code's qualification rules. Officials must consult the agriculture secretary when identifying similar new or proposed products. The credit would apply to expenses paid or incurred after the date the bill becomes law.

The manufacturing credit's date in Section 48D(e) would read December 31, 2031. The date replacement would apply to property whose construction begins after December 31, 2026.