Sponsors (10)
Official title: To amend the Internal Revenue Code of 1986 to establish the retreaded tire credit, to require Federal agencies to consider the use of retreaded tires, and for other purposes.
Introduced May 14, 2025 by Darin Lahood · Last progress May 14, 2025
The bill encourages and mandates greater use of U.S. retreaded tires—cutting federal procurement costs and reducing waste while supporting domestic retread businesses—but does so with a time-limited credit that lowers federal revenue, creates winners and losers among suppliers, adds administrative burdens, and may pose safety concerns for specialized vehicle uses.
Federal procurement and contracting: federal agencies will favor U.S. retreaded tires when appropriate and the FAR will be updated within a year, saving taxpayer money on tire replacements and reducing ambiguity for contracting officers.
Small businesses that purchase U.S.-retreaded tires can get a time-limited federal tax credit (up to $30 per tire or 30% of cost for tires placed in service 2026–2028), encouraging purchase of domestic retreads and supporting U.S. retreading businesses and related jobs.
Fleets and vehicle operators can lower operating costs and reduce waste because greater use of retreaded tires extends tire life and decreases tire disposal, producing environmental benefits.
The tax credit and increased retread purchases reduce federal tax revenue, potentially increasing deficits or crowding out other federal spending unless offsets are provided.
If retreaded tires are less suitable for certain specialized vehicles, requiring or favoring retreads could raise maintenance needs or safety risks for those vehicles and their operators.
The tax credit is time-limited (2026–2028), creating short-term relief but uncertainty for businesses making long-term fleet purchase and replacement plans.
Based on analysis of 3 sections of legislative text.
Creates a temporary business tax credit for U.S.-retreaded tires (2026–2028) and requires federal agencies to buy matching retreaded tires from the GSA schedule when available.
Creates a temporary business tax credit to encourage purchase of U.S.-retreaded tires placed in service between Jan 1, 2026 and Dec 31, 2028, and requires federal agencies to buy retreaded tires from the GSA schedule when a matching retreaded tire is available. Treasury must issue guidance for the credit; FAR must be updated within one year to add the procurement requirement.