January 21, 2025 (press release) –
The Congressional calendars for the 119th Congress were released in early December, and 2025 is shaping up to be a packed year in Washington. Unlike the usual schedule where Members of Congress arrive in D.C. early in the week and leave by Thursday afternoon, the new calendars include several Fridays and potential weekend sessions. Both the House and Senate are preparing to tackle significant and complex policy issues, making full use of their time in Washington essential.
Tax Policy: A Critical Year
2025 is expected to be a pivotal year for tax policy. Industry insiders are calling it the “Super Bowl of Tax,” with multiple key provisions up for debate. Early plans suggest two budget reconciliation packages, which allow legislation to pass the Senate with a simple majority.
The first package may address energy, border security, and military readiness, while the second will focus on tax policy, including extending critical business tax benefits introduced in the Tax Cuts and Jobs Act (TCJA). Priorities include:
• Restoring full expensing tax benefits: Phased out in recent years, the goal is to reinstate 100% bonus depreciation retroactively.
• Extending the R&D tax credit: Expired in 2022, this credit’s restoration would reduce costs for businesses investing in innovation.
• Preserving the 20% pass-through deduction: A crucial provision for small businesses, this deduction is set to expire at the end of 2025.
The Hardwood Federation will advocate for these measures, ensuring the industry’s voice is heard as tax policy evolves.
The Farm Bill: Progress and Priorities
While 2024 did not see the enactment of a new Farm Bill, meaningful groundwork was laid. Proposals in both the House and Senate included increased funding for programs like Market Access and Foreign Market Development, support for innovative wood product manufacturing, and workforce development initiatives.
New leadership on the Agriculture Committees brings optimism for 2025. The Federation will continue to push for provisions that benefit the hardwood sector, aiming for a new Farm Bill to be signed into law this year.
Trade: Preparing for Uncertainty
Trade policy remains a critical concern for the hardwood industry. President-elect Trump’s statements suggest a focus on renegotiating trade deals, with tariffs as a potential tool. The hardwood sector, which experienced significant challenges during previous tariff disputes, is bracing for potential impacts.
The Hardwood Federation is actively engaging with transition teams and Members of Congress to emphasize the consequences of tariffs on the industry. Advocacy efforts will ramp up if tariffs become a reality, and we will keep you updated on developments.
Looking Ahead
As the 119th Congress convenes in January, the hardwood industry faces a year of opportunities and challenges. The Hardwood Federation team is closely monitoring developments and will keep you informed as the year progresses.
Your continued engagement will be crucial in ensuring the industry’s priorities are addressed. Together, we can navigate the road ahead and position the hardwood industry for long-term success.
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