Resilient Tire Supply and Jobs Act
The Resilient Tire Supply and Jobs Act would create a new tax credit to encourage the use of retreaded tires and would require federal agencies to prefer retreaded tires when available on the government’s GSA tire schedule. Specifically, it adds a new retreaded tire credit (Sec. 45BB) to the general business credit, allowing businesses to claim a credit equal to the lesser of 30% of the price paid for a qualified retreaded tire or $30 per tire, for tires retreaded in the United States and purchased in the United States. The credit would apply to tires placed in service after December 31, 2025, and would discontinue for tires placed in service after December 31, 2028. In addition, the bill requires federal agencies to order retreaded tires if available on the GSA schedule and directs the FAR Council to amend procurement rules to reflect this preference within a year of enactment. The act promotes domestic retreading, aims to bolster resilience in tire supply, and ties federal procurement to supporting the retreaded tire industry.
Key Points
- 1Establishes a new retreaded tire credit (section 45BB) against the general business credit, allowing a per-tire credit equal to the lesser of 30% of the tire’s price or $30.
- 2Eligibility requires the tire to be retreaded in the United States and purchased in the United States.
- 3Effective for tires placed in service after December 31, 2025; the credit terminates for tires placed in service after December 31, 2028.
- 4Requires federal agencies to order retreaded tires if available on the General Services Administration tire schedule, in the desired size, load range, and tread designation.
- 5The Federal Acquisition Regulation (FAR) must be amended within one year to implement the retreaded tires preference; the act defines “agency” as an executive agency.