S. 2790: Resilient Tire Supply and Jobs Act

This bill, called the Resilient Tire Supply and Jobs Act, aims to encourage the use of retreaded tires in the United States by introducing a tax credit and establishing requirements for federal agencies regarding tire purchases.

Tax Credit for Retreaded Tires

The bill includes the following key provisions related to a tax credit for retreaded tires:

• Establishment of a Tax Credit: The bill proposes a new tax credit for expenses incurred in purchasing qualified retreaded tires. This credit would amount to the lesser of 30% of the price paid for the tire or $30 per tire.
• Definition of Qualified Retreaded Tires: A tire must meet two criteria to qualify for the credit: it must be retreaded in the United States and purchased by the taxpayer within the country.
• Expiration of Credit: The retreaded tire credit would not be applicable to tires placed in service after December 31, 2028.
• General Business Credit: The new credit will be included as part of the general business credit in the Internal Revenue Code.
• Implementation Guidance: The Secretary of the Treasury will issue necessary regulations and guidelines for carrying out the provisions of this credit.

Requirement for Federal Agencies

The bill also specifies requirements for federal agencies regarding the procurement and use of retreaded tires:

• Preference for Retreaded Tires: Federal agencies are required to order retreaded tires from the General Services Administration (GSA) schedule when they meet the required specifications instead of opting for new tires that cannot be retreaded.
• Regulatory Changes: The Federal Acquisition Regulatory Council must amend procurement regulations to incorporate these requirements within one year of the bill's enactment.

Timeline for Implementation

The provisions of the bill regarding the tax credit would be effective for tires placed in service after December 31, 2025, giving time for taxpayers and agencies to adjust to the new regulations.

Conclusion

The overall goal of this legislation is to promote the use of retreaded tires in both private and public sectors, supporting domestic manufacturing and potentially creating jobs in the tire retreading industry.

Relevant Companies

• GDY - Goodyear Tire & Rubber Company: As a major tire manufacturer, Goodyear could see increased demand for their retreaded tire offerings if the tax credit incentivizes consumers and organizations to purchase more retreaded products.
• BRDC - Bridgestone Corporation: Another significant player in the tire market, Bridgestone may benefit from this bill if it encourages the retreading of tires that they manufacture.
• MNDT - Mando Corporation: Manufacturing various types of tires, Mando might also be affected positively if the market for retreaded tires expands as a result of this legislation.