H.R. 3401: Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025

This bill, titled the Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025, aims to promote the use of retreaded tires in the United States through various incentives and requirements. Below are the key provisions of the bill:

1. Establishment of a Retreaded Tire Credit

The bill introduces a tax credit for businesses that purchase retreaded tires. The credit is designed as follows:

• Businesses can receive a credit amount equal to the lesser of:
• 30% of the expenses incurred for purchasing qualified retreaded tires during the taxable year, or
• $30 for each qualified retreaded tire purchased during the taxable year.
• A qualified retreaded tire must be retreaded and purchased in the United States.

2. Duration of the Tax Credit

The provision for the retreaded tire credit will be available for tires placed in service until December 31, 2028. After this date, no credits will be applied for new tires placed in service after this deadline.

3. Use of Retreaded Tires in Federal Fleets

The bill requires federal agencies to prioritize the use of retreaded tires when available. Specifically:

• If a retreaded tire that meets the necessary specifications is on the General Services Administration (GSA) tire schedule, federal agency heads must choose the retreaded tire over new, non-retreadable options.
• The Federal Acquisition Regulation must be revised within one year of the bill's enactment to reflect these new requirements.

4. Objectives of the Bill

Overall, the bill aims to:

• Support the retreaded tire industry and jobs associated with it.
• Encourage sustainability by promoting the use of retreaded tires, which are generally more environmentally friendly than new tires.
• Enhance supply chain security by increasing domestic production and use of retreaded tires.

5. Implementation and Compliance

The Secretary of the Treasury will be responsible for issuing regulations to carry out the bill's provisions, ensuring that all necessary guidelines for claiming the credit and using retreaded tires are clear and enforceable.

Relevant Companies

• BRDC - This company may see impacts related to increased demand for retreaded tires as a result of the tax credit and federal purchasing requirements.
• CTB - As a manufacturer of tires, CTB could benefit from increased sales in retreaded tires.
• GT - If GT is involved in the retreading process, they may see financial benefits from the established credit.