OLYMPIA — Lawmakers on the Agriculture & Natural Resources Committee unanimously moved a bill this week that aims to provide incentives to boost the state’s cross-laminated timber business.
House Bill 2857 would give manufacturers, wholesalers and retailers a business and occupation tax deduction and provide a sales tax exemption for construction projects.
If passed, the bill would promote the manufacturing of cross-laminated timber, “stimulating economic growth and job creation in Washington’s rural communities,” according to the legislation.
Primary sponsor Rep. Brian Blake, D-Aberdeen, said he attended a conference this summer with industry representatives who discussed the development of the cross-laminated timber industry.
According to Blake’s bill, building construction using cross-laminated timber is currently cost-prohibitive due to a lack of supply.
Cross-laminated timber, typically made out of three, five or seven bonded layers of lumber, can be used for framing in buildings as an alternative to concrete, masonry and steel.
The committee adopted an amendment that only allows for the sales tax exemption to apply to construction of new buildings and doesn’t include repairs or improvements to homes or businesses.
Blake said the bill won’t cause an increase in logging activity, but could help with forest thinning.
“The hope is that especially in some of our fire-prone areas ... some of that small wood could be used to construct cross-laminated timber,” Blake said.
While the bill received unanimous support from representatives on the Agriculture & Natural Resources Committee, which Blake chairs, he said it is facing opposition from the steel, masonry and concrete industries.
According to a fiscal note, the bill could decrease state revenues by $239,000 in 2018 and $404,000 in 2019. Local revenues could decrease by $9,000 in 2018 and $69,000 in 2019. After 2019, the estimated impact revenues are projected to decrease.
If passed, the bill would take effect on July 1 and expire on July 1, 2023.
