November 17, 2022

DHA eNews - DHA, Hardwood Federation Push For Tax Break On Equipment

This Week's Insights

It’s been said that elections have consequences. And it’s perhaps never been more true than over the last two years when Democrats controlled the White House and narrowly controlled both houses of Congress. As a result, they were able to enact several large spending bills. This big legislation is likely to come to an end with the House appearing to be in Republican hands for now. In any case, Decorative Hardwoods Association will continue to work with both parties to advance our members' interests and the interests of the thousands of industry workers around the U.S. For example, DHA and the Hardwood Federation recently advocated with Congress for the continuation of a tax break that allows companies to write off 100% of the value of an asset in the year in which that asset is purchased—a critical benefit for many small and medium-sized wood products companies.

Climate issues and carbon storage have also been getting more attention over the last two years. Carbon storage by forests is increasingly looking like a double-edged sword for our industry. Forests and wood products store carbon and, if properly crafted, carbon offset payments could help forests and our industry. More often, however, these programs seem to be focusing just on standing trees and reducing harvest. The latest example of this is a large purchase of hardwood forests by a consortium that says it will reduce harvest. DHA and our allies are looking at opportunities to make sure that these programs properly reflect the benefits of carbon storage of wood products and to encourage the government to support programs that recognize the role of wood products.

Finally, trade issues continue to be important to our industry. Unfortunately, KCMA received disappointing news, as many Chinese companies are avoiding antidumping duties on Chinese-made cabinets exported to the U.S. We will continue to follow the efforts of the cabinet industry, our important downstream customers.

If you have questions or comments, contact me. I look forward to hearing from you.

Keith A. Christman, President
Decorative Hardwoods Association


Photo © Roseburg

DHA, Hardwood Federation Push For Tax Break On Equipment

More than 30 wood-related trade associations have signed on to a Hardwood Federation letter advocating for the extension of bonus depreciation: the ability to fully expense the cost of capital expenditures when purchased. Currently, this tax break will begin to phase out in 2023 and will be completely eliminated in 2027. The ability to write off 100% of an asset—like a kiln, boiler, forklift, or truck—when it's purchased allows companies to reduce short-term taxable income and has been critical to helping small and medium-sized wood products companies continue to operate. These companies are located primarily in rural communities across the country.

Consortium Bets $1.8 Billion On Forest Carbon Offsets—By Reducing Harvests

A consortium has paid $1.8 billion for a block of U.S. hardwood forests, the largest bet yet on forest carbon markets. The consortium is acquiring and managing timberland to maximize how much carbon is stored in the standing trees, rather than sustainably managing the forest for harvest.

KCMA Calls Commerce Ruling "Disturbing & Shocking"

The Kitchen Cabinet Manufacturers Association expressed shock and dismay at the Department of Commerce's decision to make no changes to the zero dumping margin for 16 Chinese cabinet manufacturers and suppliers. KCMA has been working with trade officials and lawmakers to halt unfair trading practices by Chinese importers of wooden cabinets, vanities, and components into the U.S.

Russia's Plywood Production Drops By 40%

From January through September, the volume of Russia's industrial lumber declined by 7.5% vs. the same period last year. Plywood production dropped further, by nearly 26%. In September alone, plywood production was down by 40% vs. September 2021.

Four EU Countries Join To Defend Forestry Interests

Four countries with large forest reserves—Austria, Finland, Slovenia, and Sweden—have joined together to advocate for EU policies that emphasize the forest industry beyond environmental or carbon issues.

Roseburg Resumes Veneer Mill Operations In CA

After a devastating fire in September at the Weed, CA, veneer plant, Roseburg resumed full operations at the facility on November 9, returning 145 workers to full schedules.

AHF Products Names O'Bryon CFO

Dan O’Bryon will provide financial leadership for AHF Products, reporting directly to the president and CEO. Before this, he served as CFO for International Materials.

Download Your Free Copy Of HP-1

Download your free copy of the American National Standard for Hardwood and Decorative Plywood. HP-1-2020 details specific requirements for all face, back, and inner ply grades as well as formaldehyde emissions, moisture content, tolerances, sanding, and grade marking. 

Russian Invasion Destroys Ukraine's Forests

President Zelensky stated that "the Russian war destroyed 5 million acres of forests in Ukraine in less than six months." He said that another consequence of the war is an energy crisis that has forced dozens of countries to turn to coal in order to lower energy prices.

Advocates For Spotted Owl Seek To Block Oregon Logging Project

Activists for the spotted owl appealed the district court's dismissal of its attempt to stop a logging project of more than 9,000 acres in the Klamath Falls Resource Area. They argued that the logging may lead to the abandonment of five spotted owl sites.

New $1.3 Billion Forestry Program Launches In Ireland

Ireland's new carbon mitigation program will help farmers plant trees by paying for about half to two-thirds of the cost of planting as part of a new forestry program that will run from 2023 until 2030. This will be Ireland's largest investment in reforestation.

Oak Lace Bug Ramps Up Destruction

The oak lace bug, a non-native pest, caused heavier damage to Oregon's white oak trees this year, likely due to extended summer temperatures. 

New Home Sales Drop By 10.9% As Mortgage Rates Approach 7%
Housing Affordability Continues To Fall
Canadian GDP Edges Up
Homebuilders Say They’re On A Downturn As Buyers Pull Back
Furniture Manufacturing Weakens Again
3 Housing Trends That Will Influence The Home Furnishings Industry In 2023
Expect The Wood Products Market To Reach $243.9 Billion In 2026
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