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Policies That Incentivize Wood Use

The Bunker Hill Housing Redevelopment received funding through the second round of the Boston Mass Timber Accelerator Program. Comprised of multiple buildings, it is expected to be the largest Passive House-certified project in North America. Credit: Leggat McCall Properties (LMP) on behalf of the Bunker Hill Housing tri-party development team with Stantec.

Is Your City or State Government Incentivizing Innovative Wood Solutions?

Working with the AEC+D community, we’re often asked about the availability of policies and incentives that support wood use. From faster permitting to code flexibility, jurisdictions like Boston and Washington State are creating simplified pathways for the use of wood—not only for its environmental benefits, but its performance, efficiency, and support of U.S.-based manufacturing. This page represents Phase 1 of a tool intended to become more robust over time, making it easier and more economical to implement wood solutions. Check back often to learn about policies that could benefit your next building project.

The policies below are specific to the use of mass timber and other wood materials in construction projects.
If you’re aware of a policy that isn’t listed, we welcome suggestions.

Opportunity
Jurisdiction
Target Project Type
Description
Incentive/ Funding Type
Status
National
National
All
The Softwood Lumber Board (SLB) and USDA Forest Service invite cities interested in expanding the use of lumber-based building systems to apply for funding and project support for local mass timber accelerator programs.
Grants
Annual
National
Federal
Bill S.1094 establishes a contracting preference for public buildings that use innovative wood products in the construction of those buildings and for other purposes.
Contract preference
Introduced; referred to Senate Committee on Environment and Public Works
States that have adopted the 2021 and/or 2024 IBC
Tall wood
Mass timber buildings up to 18 stories are allowed prescriptively in jurisdictions that have adopted the tall mass timber code provisions in the 2021 and/or 2024 IBC. Local amendments may apply.
Code opportunity
Varies by state
National
Commercial, institutional, multi-family
This established grant program stimulates, expands, and supports U.S. wood product and wood energy markets to support the long-term management of National Forest System and other forest lands. National focus areas include mass timber, renewable wood energy, and technological development that supports hazardous fuel reduction and sustainable forest management.
Grants
Annual
State
CA
Non-residential and DSA projects
The California Green Building Standards Code (CALGreen) is the nation’s first mandatory green building standards code. WoodWorks hosted a workshop for AECs interested in using wood to meet the mandatory requirements outlined in Chapter 5 of the code. Watch the video here: https://vimeo.com/986739927
Green building standards
Active
CO
All
Wood products made from trees salvaged after being killed or infested by mountain pine beetles or spruce beetles are exempt from state sales and use tax.
Tax exemption
Active (expires 6/30/26)
7. Buy Clean Colorado Act (BCCO) / Policy to Reduce Emissions from Built Environment Act of 2022 (SB 22-051)
CO
All
The Colorado Department of Revenue, Taxation Division has published a list of eligible decarbonizing building materials that are exempt from state sales and use tax. The list includes some wood structural materials and is available here: Max GWP Limits | OSA
Note: The BCCO applies to government projects over $500k, but the tax exemption is available to all projects.
Tax exemption
Active
GA
All
This is a non-profit program established by Georgia Senate Bill 356 in 2004 to provide an official mechanism for the development, documentation, and reporting of carbon sequestration projects undertaken in Georgia. Participation is voluntary and the Registry is not a market platform. It is designed for reporting carbon sequestration activities, but does not purchase "carbon credits" or administer financial transactions.

Active
GA
Commercial
Operated by the Georgia Mass Timber Collective, this program provides resources and support to architects, engineers, and developers to elevate mass timber projects across Georgia. Funding is provided in part by the Softwood Lumber Board and technical support by WoodWorks.
Grants/project support
Pending next phase
OR
Affordable housing
This $25M pilot program will provide grants to five recipients to deliver high-quality, energy-efficient homes for families earning up to 80% of Area Median Income (AMI), prioritizing modular, off-site, and mass timber construction.
Grants
Active
WA
State-owned
Signed into law in 2024, this bill requires state agencies and higher education institutions to report on the environmental impacts of concrete, wood, and steel products purchased for the construction and renovation of large, state-owned buildings.
Policy
Active
WA
Residential
Partnering with best-in-class developers, this fund invests in a diversified portfolio, primarily targeting missing middle housing, single-family detached, and low-rise multi-family projects. The fund prioritizes sustainable development strategies, with the objective of improving building efficiency, long-term resilience, and resident well-being. With a 5-to-7-year fund life, this offering is structured with the objective of generating cash flow distributions and recycling capital throughout its investment period.
Investment fund
Pending next phase
WA
Residential
Bill 1110 seeks to creating more homes in the state by expanding zoning opportunities for middle housing in areas traditionally dedicated to single-family homes.
Zoning
Active
WA
Residential
Cities must adopt regulations that allow for greater building height and increased density in bus station areas for developments built with mass timber products.
Transit-oriented development
Active
Local
Emeryville, CA
Residential
Table 9-4.204(e): Community Benefits and Bonus Points summarizes points for utilizing mass timber materials
Density bonus
Active
New Haven, CT
Commercial, industrial
Table 43.2 Sustainable Strategies (8.b) provides 5 points toward the floor area ratio (FAR) for using mass timber or other engineered timber system as the primary structure.
FAR bonus
Active
Boston, MA
Commercial
This program provides development teams with technical assistance and funding grants to assess and integrate mass timber building practices into their projects. Funding is provided in part by the Softwood Lumber Board and technical support by WoodWorks.
Grants/project support
Complete; see final report
Boston, MA
All
The city of Boston aims to achieve carbon neutrality by 2050. Their Net Zero Carbon (NZC) Zoning Proposal includes reducing reliance on fossil fuels and encouraging low-carbon materials. As of July 1, 2025, new projects are required to meet a net zero emissions standard.
Zoning
Active
Cambridge, MA
Commercial
Teams developing non-residential projects consisting of at least 50,000 square feet must submit a WBLCA showing estimated emissions generated by the construction of applicable green building projects. Reporting shall include at a minimum the estimated life cycle emissions generated by the use of major building materials, including but not limited to wood, concrete, steel, aluminum, and glass.
Green building standards
Active
East Lansing, MI
Commercial
This ordinance incentivizes certain building forms and materials by permitting additional building height or number of units and allowing upper-floor residential uses in certain business zone districts. It encourages the use of mass timber through a system of incentive points, while also permitting mass timber production or manufacturing in industrial zone districts.
Zoning
Active
New York, NY
Commercial
This NYC mass timber accelerator program broadens awareness, identifies new opportunities, and facilitates the use of mass timber in New York City. Participating design and development teams receive in-depth technical assistance related to project planning and design and navigating regulations. The program is led by the New York City Economic Development Corporation (NYCEDC) and Newlab. Funding is provided in part by the Softwood Lumber Board and technical support by WoodWorks.
Design and regulatory support
Pending next phase
Bellevue, WA
Commercial, multi-family, tall wood
Allows larger floor plate limits than current code baselines for mass timber. There are no FAR limits, resulting in a higher yield. Podium stepback provisions are waived for mass timber allowing for simplified, cost-effective geometry.
Zoning
Active
Redmond, WA
All
An incentive program established to encourage green building techniques, reduce the carbon footprint of new developments, and meet other environmental goals. Includes special regulations for mass timber projects. Read about Redmond’s incentives for the use of mass timber here: Green Building | Redmond, WA
Zoning
Active
Seattle, WA
Industrial
Extra floor area beyond that achieved through Tier I may be added to the maximum Tier II FAR as shown in Table A for 23.50A.120 provided one of two conditions are met, and after the amount of extra floor area available in Tier I is exhausted. Condition 1 is that at least 50 percent of the gross floor area (other than parking) must be mass timber and construction type IV-A, IV-B, IV-C, or IV-HT.
Zoning
Active
Seattle, WA
Mid- and large-size commercial and residential
In exchange for meeting the Living Building Challenge (LBC), this pilot program allows additional height and floor area, and lets teams request departures from the Seattle Land Use Code. To be eligible, the project must qualify for a full design review.
Density bonus
Active (pilot expires 12/31/30 or when 20 projects are enrolled)

Updated August 2025