119-hr3401

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3401 Introduced in House

    (IH) ]

<DOC>

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. LaHood (for himself and Mrs. Sykes) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
to the Committee on Oversight and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Retreaded Tire Jobs, Supply Chain 
Security and Sustainability Act of 2025''.

SEC. 2. CREDIT FOR CERTAIN RETREADED TIRES.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end of 
subpart D the following new section:

``

SEC. 45BB. RETREADED TIRE CREDIT.

 ``

    (a) In General.--For purposes of 

section 38, the retreaded tire 
credit for any taxable year is an amount equal to the sum of the credit 
amounts determined under subsection

    (b) with respect to the taxpayer 
for the taxable year.
 ``

    (b) Per Tire Amount.--There shall be a credit equal to so much of 
the qualified tire retreading expenses of the taxpayer as do not exceed 
the lesser of--
 ``

    (1) 30 percent of the amount paid or incurred by the 
 taxpayer to purchase qualified retreaded tires placed in 
 service during the taxable year, or
 ``

    (2) the product of $30 multiplied by the number of 
 qualified retreaded tires placed in service by the taxpayer 
 during the taxable year.
 ``
            (c) Qualified Retreaded Tire.--The term `qualified retreaded 
tire' means a retreaded tire--
 ``

    (1) retreaded in the United States, and
 ``

    (2) purchased by the taxpayer in the United States.
 ``
            (d) Regulations and Guidance.--The Secretary shall issue such 
regulations and guidance as the Secretary determines necessary to carry 
out the purposes of this section.
 ``

    (e) Termination.--No credit shall be determined under this 
section with respect to qualified retreaded tires placed in service 
after December 31, 2028.''.

    (b) Credit Allowed as Part of General Business Credit.--

Section 38

    (b) of such Code is amended by striking ``plus'' at the end of 
paragraph

    (40) , by striking the period at the end of paragraph

    (41) , 
and by adding at the end the following new paragraph:
 ``

    (42) the retreaded tire credit determined under 

section 45BB.''.
            (c) Clerical Amendment.--The table of sections for part IV of 
subchapter A of chapter 1 of such Code is amended by adding at the end 
the following new item:

``

Sec. 45BB. Retreaded tire credit.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to tires placed in service after December 31, 2025.

SEC. 3. USE OF RETREADED TIRES FOR FEDERAL FLEETS.

    (a) Requirement.--In any case in which a retreaded tire is 
available on the General Services Administration tire schedule in the 
size, load range, and tread designation desired, the head of an agency 
shall order such tire instead of a new, not retread-able tire.

    (b) FAR Revision.--Not later than 1 year after the date of the 
enactment of this Act, the Federal Acquisition Regulation shall be 
updated to include the requirements of this section.
            (c) Agency Defined.--The term ``agency'' has the meaning given the 
term ``executive agency'' in 

section 133 of title 41, United States 
Code.
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