Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025
- Bill Number
- H.R. 3401
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-05-14: 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.
- Last Updated
- 2026-07-01T08:07:54Z
AI-Generated Summary
Purpose of the Legislation
The Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025 aims to promote the use of retreaded tires—tires that have been refurbished by adding new tread to worn casings—by providing tax incentives and requiring federal agencies to prioritize them. This supports job creation in the retreading industry, enhances supply chain reliability, and advances environmental sustainability by reducing waste from discarded tires.
Key Provisions
- Tax Credit for Retreaded Tires (Section 2):
- Establishes a new tax credit under Section 45BB of the Internal Revenue Code (IRC), allowing businesses to claim a credit for purchasing and using "qualified retreaded tires."
- The credit equals the lesser of 30% of the purchase cost or $30 per tire.
- Qualified tires must be retreaded and purchased in the United States.
- The credit applies to tires placed in service (i.e., put into active use) after December 31, 2025, and expires for tires placed in service after December 31, 2028.
- The credit is part of the general business credit, which can offset other tax liabilities.
- The IRS Secretary is authorized to issue regulations to implement this provision.
- Federal Agency Requirements for Retreaded Tires (Section 3):
- Federal executive agencies must order retreaded tires from the General Services Administration (GSA) schedule if they match the required size, load range, and tread type, instead of new tires that cannot be retreaded.
- The Federal Acquisition Regulation (FAR)—the main set of rules for government procurement—must be updated within one year of enactment to incorporate this requirement.
- Applies to all executive agencies as defined under U.S. procurement law.
Significant Changes to Existing Law
- Amendments to the Internal Revenue Code:
- Adds a new Section 45BB to create the retreaded tire credit, which did not previously exist.
- Updates Section 38(b) to include this credit in the list of allowable general business credits, integrating it into the existing tax framework without altering other credits.
- Includes a clerical update to the IRC's table of sections for organizational purposes.
- Changes to Federal Procurement:
- Introduces a mandatory preference for retreaded tires in federal vehicle fleets when available, which is a new requirement not previously in the FAR or GSA guidelines.
- No direct changes to environmental or labor laws, but indirectly supports them through procurement and tax policy.
Potential Impacts
- On Government Agencies:
- Executive agencies (e.g., those managing federal vehicle fleets like the Department of Defense or Transportation) will need to adjust procurement processes, potentially reducing costs by using more affordable retreaded tires and minimizing waste. This could lead to administrative updates and training.
- On Citizens and Businesses:
- Businesses, especially in transportation and logistics (e.g., trucking companies), benefit from the tax credit, encouraging adoption of retreaded tires and potentially lowering operational costs. This may create or sustain jobs in the U.S. retreading sector.
- Citizens indirectly gain through a more sustainable economy, reduced tire waste in landfills, and possibly lower prices for goods transported by fleets using cost-effective tires.
- On International Relations:
- Promotes domestic retreading, which could strengthen U.S. supply chains by reducing reliance on imported new tires. Minimal direct impact on trade, but it may encourage similar sustainability practices among trading partners.
Main Stakeholders Affected
- Federal Government Agencies: Executive agencies responsible for vehicle maintenance and procurement, including the GSA, which manages tire schedules.
- Tire Industry Participants: U.S.-based retreaders, manufacturers, and suppliers who stand to gain from increased demand and tax incentives.
- Businesses and Taxpayers: Companies using tires in fleets (e.g., commercial trucking, agriculture) that can claim the credit; individual taxpayers are unaffected directly.
- Environmental and Labor Groups: Beneficiaries through reduced waste and job support, though not directly regulated by the bill.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill relies on Congress's authority to amend tax and procurement laws, with no apparent conflicts with existing statutes. The temporary nature of the tax credit (ending in 2028) allows for future evaluation and adjustment. Implementation depends on IRS regulations and FAR revisions, which could face minor administrative challenges but are straightforward.
- Constitutional Implications: Aligns with Congress's powers under Article I to tax and spend for the general welfare; no issues related to federalism, as it applies only to federal operations and voluntary business incentives.
- Political Implications: Introduced bipartisanship (by Rep. LaHood, R, and Rep. Sykes, D) suggests broad appeal for sustainability and economic measures. It could set a precedent for incentivizing green procurement in federal policy without mandating private sector changes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (9)
Rep. Sykes, Emilia Strong [D-OH-13], Rep. Carey, Mike [R-OH-15], Rep. Schmidt, Derek [R-KS-2], Rep. Rouzer, David [R-NC-7], Rep. Miller, Max L. [R-OH-7], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Meuser, Daniel [R-PA-9], Rep. Beyer, Donald S. [D-VA-8], Rep. Davis, Donald G. [D-NC-1]
Recent Actions
- 2025-05-14: 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.
- 2025-05-14: 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.
- 2025-05-14: Introduced in House
- 2025-05-14: Introduced in House
Bill Versions
- Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025 — issued 2025-05-14 — PDF (4 pages)