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Our members influence regulations, secure industry wins, and strengthen the pallet sector for decades to come. A major milestone this summer illustrates that clearly: the passage of the reconciliation bill included every tax policy our industry requested, from permanent 100 percent bonus depreciation to expanded business interest deductions, full expensing of production property, structural depreciation, R&D expensing, and the Section 199-A deduction. These victories didn’t happen overnight—they’re the result of sustained advocacy and member engagement over the years. For pallet companies, these provisions aren’t just paperwork—they’re tools to invest in operations, modernize equipment, expand facilities, and retain skilled workers.
Watching the Global Pulse
While tax wins are tangible, other issues are still developing. Timing may be uncertain, but the Section 232 investigation on lumber and derivatives could disrupt pricing, sourcing, and margins once tariffs are announced. Country-specific developments also matter: Canada is likely to lose its USMCA exemption, which could bring all lumber imports under new tariffs; the European Union has proposed a 15 percent cap on lumber tariffs, though political opposition could stall the deal; and lumber imports from Brazil remain subject to a 40 percent tariff due to unresolved trade disputes.
Meanwhile, USMCA negotiations, FY2026 appropriations, and the Farm Bill all carry implications for exporters, timber supply, sustainable management incentives, and operational costs. Forward-looking com- panies should model scenarios now, track deadlines, and work with associations like WPA to understand impacts before they hit the shop floor.
Extended Producer Responsibility legislation is also gaining traction, especially in California with SB 54, the Plastic Pollution Prevention and Packaging Producer Responsibility Act. The Renewable Fuel Standard is another area to watch. Efforts to expand the definition of qualifying woody biomass would allow small trees, harvest residuals, and mill scrap to become transportation fuel. This supports sustainability while opening new markets for residual materials which is a win for pallet operators and mill partners alike.
Looking Ahead
As we begin to close out the year and look toward 2026, the questions remain: how will you cut through the noise? How will you move from observer to participant? The more personal your connection to advocacy becomes, the clearer the path ahead—for your business and for our industry as a whole. Participation, engagement, and insight are not just optional—they are the keys to turning regulatory uncertainty into opportunity.
WPM
October 2025