Sponsors (9)
The bill promotes use of domestically retreaded tires—saving taxpayer money, reducing waste, and supporting U.S. retreading jobs—while creating short-term costs, supply/price pressures, limited-term incentive uncertainty, and potential safety/performance trade-offs for certain vehicles.
All taxpayers benefit because federal agencies will spend less on vehicle tire procurement by using lower-cost retreaded tires when appropriate, lowering government operating costs paid by taxpayers.
Businesses and individual buyers of retreaded tires can reduce their federal tax liability by claiming a credit equal to up to 30% of the purchase cost (capped at $30 per tire) for qualifying U.S.-retreaded tires.
Transportation workers and small business retreaders benefit because the bill’s U.S.-only eligibility encourages domestic retreading jobs and supports U.S. maintenance and manufacturing employment.
Federal employees and mission-critical operations could face risks because retreaded tires may not meet specialized performance or safety needs for certain vehicles.
Taxpayers and small-business sellers face policy uncertainty because the consumer tax credit expires after 2028, which may discourage long-term investment by purchasers and suppliers.
Buyers such as taxpayers and transportation operators may see higher tire costs if the U.S.-only eligibility limits supply and domestic retreads are more expensive or scarce in some markets.
Based on analysis of 3 sections of legislative text.
Introduced May 14, 2025 by Darin Lahood · Last progress May 14, 2025
Creates a tax credit for businesses that buy retreaded tires made in the United States for use after December 31, 2025 and before January 1, 2029, and requires federal agencies to use retreaded tires from the GSA tire schedule when a matching retread is available. The tax credit pays up to 30% of the cost or $30 per tire (whichever is less) and applies only to tires retreaded and purchased in the U.S. The Treasury must write implementing regulations for the credit, and the Federal Acquisition Regulation must be updated within one year to reflect the new federal purchasing rule. No new appropriations are created; the measure changes tax law and procurement rules and sunsets the credit at the end of 2028.