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Committee extends tax exemption for equipment used by Healthy Forest Enterprises
Summary
The committee recommended a due pass for HB2639, which extends a transaction privilege and use tax exemption for equipment purchased by businesses certified as 'healthy forest enterprises' through 2028.
House Bill 2639 extends an existing transaction-privilege and use‑tax exemption for qualifying equipment purchased by businesses certified as Healthy Forest Enterprises. The bill moves the exemption’s sunset date from Dec. 31, 2026, to Dec. 31, 2028.
Supporters said the exemption encourages mechanical thinning, biomass utilization and private-sector activity that supports fuels reductions. Russell Smolden and stakeholders from the timber, co‑op and restoration communities said the program has been underutilized and that extending the deadline preserves an incentive while lawmakers consider ways to improve uptake.
Representative Sandoval asked how many businesses have used the exemption; witnesses said take-up has been limited and offered to provide Department of Revenue figures. Some members said they were concerned that the program’s current design makes it difficult to use and asked for follow‑up to measure effectiveness prior to further extension. The committee nevertheless advanced the bill.
Outcome: Committee returned HB2639 with a due‑pass recommendation (committee tally 5 ayes, 2 nays, 2 absent).
