The Retreaded Tire Credit Act of 2025: A New Incentive for Sustainability
HR 3401 IH is a bill introduced in the 119th Congress that aims to promote sustainability and reduce waste in the tire industry.
Section 1: Short Title
This Act may be cited as the ‘‘Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025’’.
Section 2. Credit for Certain Retreaded Tires
Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end of subpart D the following new section:
SEC. 45BB. Retreaded Tire Credit
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For purposes of section 38, the retreaded tire credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to the taxpayer for the taxable year.
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There shall be a credit equal to so much of the qualified tire retreading expenses of the taxpayer as do not exceed the lesser of—
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30 percent of the amount paid or incurred by the taxpayer to purchase qualified retreaded tires placed in service during the taxable year, or
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the product of $30 multiplied by the number of qualified retreaded tires placed in service by the taxpayer during the taxable year.
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Section 2. Credit for Certain Retreaded Tires (continued)
The term “qualified retreaded tire” means a retreaded tire—
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retreaded in the United States, and
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purchased by the taxpayer in the United States.
Section 3. Use of Retreaded Tires for Federal Fleets
In any case in which a retreaded tire is available on the General Services Administration tire schedule in the size, load range, and tread
designation desired, the head of an agency shall order such tire instead of a new, not retread-able tire.
Section 3. Use of Retreaded Tires for Federal Fleets (continued)
Not later than 1 year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be updated to include the requirements of this section.
The Retreaded Tire Credit Act of 2025 can be found at:
HR 3401 IH
References:
- Government Information, Records, and Information Services Act (GIRA) Title 44, United States Code
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