Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025

I 119TH CONGRESS 1ST SESSION H. R. 3401 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. IN THE HOUSE OF REPRESENTATIVES MAY 14, 2025 Mr. L AHOOD (for himself and Mrs. S YKES) introduced the following bill; which was referred to the Committee on Ways and Means, and in addi- tion to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consider- ation of such provisions as fall within the jurisdiction of the committee concerned A BILL 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. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Retreaded Tire Jobs, 4 Supply Chain Security and Sustainability Act of 2025’’. 5 VerDate Sep 11 2014 04:07 May 20, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3401.IH H3401kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •HR 3401 IH SEC. 2. CREDIT FOR CERTAIN RETREADED TIRES. 1 (a) IN GENERAL.—Part IV of subchapter A of chap-2 ter 1 of the Internal Revenue Code of 1986 is amended 3 by adding at the end of subpart D the following new sec-4 tion: 5 ‘‘SEC. 45BB. RETREADED TIRE CREDIT. 6 ‘‘(a) I N GENERAL.—For purposes of section 38, the 7 retreaded tire credit for any taxable year is an amount 8 equal to the sum of the credit amounts determined under 9 subsection (b) with respect to the taxpayer for the taxable 10 year. 11 ‘‘(b) P ER TIRE AMOUNT.—There shall be a credit 12 equal to so much of the qualified tire retreading expenses 13 of the taxpayer as do not exceed the lesser of— 14 ‘‘(1) 30 percent of the amount paid or incurred 15 by the taxpayer to purchase qualified retreaded tires 16 placed in service during the taxable year, or 17 ‘‘(2) the product of $30 multiplied by the num-18 ber of qualified retreaded tires placed in service by 19 the taxpayer during the taxable year. 20 ‘‘(c) Q UALIFIED RETREADED TIRE.—The term 21 ‘qualified retreaded tire’ means a retreaded tire— 22 ‘‘(1) retreaded in the United States, and 23 ‘‘(2) purchased by the taxpayer in the United 24 States. 25 VerDate Sep 11 2014 04:07 May 20, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3401.IH H3401kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •HR 3401 IH ‘‘(d) REGULATIONS AND GUIDANCE.—The Secretary 1 shall issue such regulations and guidance as the Secretary 2 determines necessary to carry out the purposes of this sec-3 tion. 4 ‘‘(e) T ERMINATION.—No credit shall be determined 5 under this section with respect to qualified retreaded tires 6 placed in service after December 31, 2028.’’. 7 (b) C REDIT ALLOWED AS PART OF GENERAL BUSI-8 NESS CREDIT.—Section 38(b) of such Code is amended 9 by striking ‘‘plus’’ at the end of paragraph (40), by strik-10 ing the period at the end of paragraph (41), and by adding 11 at the end the following new paragraph: 12 ‘‘(42) the retreaded tire credit determined 13 under section 45BB.’’. 14 (c) C LERICAL AMENDMENT.—The table of sections 15 for part IV of subchapter A of chapter 1 of such Code 16 is amended by adding at the end the following new item: 17 ‘‘Sec. 45BB. Retreaded tire credit.’’. (d) E FFECTIVE DATE.—The amendments made by 18 this section shall apply to tires placed in service after De-19 cember 31, 2025. 20 SEC. 3. USE OF RETREADED TIRES FOR FEDERAL FLEETS. 21 (a) R EQUIREMENT.—In any case in which a 22 retreaded tire is available on the General Services Admin-23 istration tire schedule in the size, load range, and tread 24 VerDate Sep 11 2014 04:07 May 20, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3401.IH H3401kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •HR 3401 IH designation desired, the head of an agency shall order such 1 tire instead of a new, not retread-able tire. 2 (b) FAR R EVISION.—Not later than 1 year after the 3 date of the enactment of this Act, the Federal Acquisition 4 Regulation shall be updated to include the requirements 5 of this section. 6 (c) AGENCY DEFINED.—The term ‘‘agency’’ has the 7 meaning given the term ‘‘executive agency’’ in section 133 8 of title 41, United States Code. 9 Æ VerDate Sep 11 2014 04:07 May 20, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H3401.IH H3401kjohnson on DSK7ZCZBW3PROD with $$_JOB