Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025 | ChamberLight
Bills · HR 3401
IN COMMITTEE· 119TH CONGRESS
House BillHR 3401Taxation
Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025
INTRO MAY 14· LAST ACTION MAY 14
READING
3MIN
COSPONSORS
9BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Businesses that operate vehicle fleets, such as trucking companies, delivery services, and agricultural operations, would be directly affected as they could claim a tax credit for purchasing qualified retreaded tires, potentially lowering their operating costs.
Federal government agencies, including the U.S. Postal Service, Department of Defense, and other departments with vehicle fleets, would be required to change their purchasing practices to prioritize retreaded tires. This would also likely boost demand for U.S.-based tire retreading companies, supporting jobs in that sector.
KEY PROVISIONS
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PROVISION 01
Establishes a new tax credit for taxpayers who purchase qualified retreaded tires made in the United States.
This encourages businesses and individuals to choose more sustainable and potentially cost-effective tire options.
PROVISION 02
Requires federal government agencies to purchase retreaded tires for their vehicle fleets when they are available and meet specific criteria.
This provision creates significant demand for retreaded tires and sets an example for sustainable procurement within the government.
PROVISION 03
Sets the tax credit amount as the lesser of 30% of the tire's cost or $30 per qualified retreaded tire.
This clearly defines the financial incentive provided to those who opt for retreaded tires.
PROVISION 04
Specifies that the tax credit will expire for tires placed in service after December 31, 2028.
This establishes a clear timeframe for the incentive, indicating it is intended as a temporary boost to the industry.
PROVISION 05
Mandates that the Federal Acquisition Regulation (FAR) be updated within one year to incorporate the new federal agency purchasing requirements.
This ensures that the federal mandate is officially implemented into government buying procedures.
Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Businesses that operate vehicle fleets, such as trucking companies, delivery services, and agricultural operations, would be directly affected as they could claim a tax credit for purchasing qualified retreaded tires, potentially lowering their operating costs.
Federal government agencies, including the U.S. Postal Service, Department of Defense, and other departments with vehicle fleets, would be required to change their purchasing practices to prioritize retreaded tires. This would also likely boost demand for U.S.-based tire retreading companies, supporting jobs in that sector.
KEY PROVISIONS
AI-extracted
high
Establishes a new tax credit for taxpayers who purchase qualified retreaded tires made in the United States.
This encourages businesses and individuals to choose more sustainable and potentially cost-effective tire options.
high
Requires federal government agencies to purchase retreaded tires for their vehicle fleets when they are available and meet specific criteria.
This provision creates significant demand for retreaded tires and sets an example for sustainable procurement within the government.
med
Sets the tax credit amount as the lesser of 30% of the tire's cost or $30 per qualified retreaded tire.
This clearly defines the financial incentive provided to those who opt for retreaded tires.
med
Specifies that the tax credit will expire for tires placed in service after December 31, 2028.
This establishes a clear timeframe for the incentive, indicating it is intended as a temporary boost to the industry.
med
Mandates that the Federal Acquisition Regulation (FAR) be updated within one year to incorporate the new federal agency purchasing requirements.
This ensures that the federal mandate is officially implemented into government buying procedures.
Not later than 1 year after the date of the enactment of this Act
Federal Acquisition Regulation (FAR) must be updated to include requirements for federal agency use of retreaded tires.
After December 31, 2028
Retreaded tire tax credit terminates for qualified retreaded tires placed in service.
For tires placed in service after December 31, 2025
Effective date for the retreaded tire tax credit.
GLOSSARY
AI-written
Retreaded tire
A used tire casing that has been inspected, repaired, and fitted with a new tread, allowing it to be reused.
Internal Revenue Code of 1986
The primary set of laws in the United States governing federal income tax and other taxes.
Taxable year
The annual period, typically a calendar year for individuals or a fiscal year for businesses, used for calculating and reporting income for tax purposes.
General Services Administration (GSA) tire schedule
A list or catalog of products and services, including tires, available for purchase by federal agencies at pre-negotiated prices.
Federal Acquisition Regulation (FAR)
The main set of rules and procedures that govern how agencies of the U.S. federal government buy goods and services.
Section 38
A part of the Internal Revenue Code that consolidates and allows for a combination of various general business tax credits.
ACTION TIMELINE
2 EVENTS
MAY 14, 25
Introduced in House
INTROREFERRAL
MAY 14, 25
Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.