Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025
HB3401, titled the Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025, would create a new federal income tax credit for certain retreaded tires. The credit would be available for qualified retreaded tires that are retreaded and purchased in the United States, and it would be calculated as the lesser of 30 percent of the purchase price or $30 per tire. The credit would be added to the general business credit and would apply to tires placed in service after December 31, 2025, with the credit terminating for tires placed in service after December 31, 2028.
The bill also directs federal agencies to consider retreaded tires for fleet purchases. If a retreaded tire is available on the General Services Administration tire schedule in the needed size, load range, and tread designation, an agency head would be required to order the retreaded tire instead of a new tire that cannot be retreaded. The Federal Acquisition Regulation would have to be updated within one year to reflect this requirement.
In practical terms, the bill would amend the Internal Revenue Code by adding a new section 45BB and conforming the general business credit provisions to include the new credit. It would also affect federal procurement practices by creating a preference, in specified circumstances, for retreaded tires in executive agency fleets. The measure is framed as supporting domestic manufacturing, supply chain resilience, and sustainability.
Because there are no recorded votes or committee transcripts, the available context suggests limited public debate so far. The bill’s title and structure indicate generally favorable policy goals around jobs, domestic sourcing, and environmental benefits, but no formal sentiment can be measured from the provided materials. The main potential point of contention is likely whether the tax credit and procurement mandate are the best way to support the retreaded tire industry, and whether the federal purchasing requirement could limit agency flexibility or raise operational concerns.
The bill would add a new temporary business tax credit to the Internal Revenue Code for qualified retreaded tires and incorporate that credit into the general business credit. It would also require federal agencies, through updated procurement rules, to prefer retreaded tires when available on the GSA schedule in the needed specifications. These changes would primarily affect tire retreaders, tire purchasers, federal fleet managers, and agencies subject to the Federal Acquisition Regulation.
No votes or committee hearing transcripts are available, so there is no documented legislative debate to gauge support or opposition. Based on the bill’s stated goals—jobs, supply chain security, and sustainability—the measure appears designed to appeal to proponents of domestic manufacturing and recycling, but the absence of recorded discussion means sentiment cannot be measured beyond the bill’s pro-retreading framing.
The likely policy tension is between promoting domestic retreading and preserving purchasing flexibility for federal agencies and private businesses. Supporters would likely emphasize job creation, U.S.-based supply chain benefits, and sustainability, while critics may question the need for a tax subsidy, the administrative burden of the procurement requirement, or whether retreaded tires are always the best operational choice. No specific member objections are recorded in the provided materials.