Resilient Tire Supply and Jobs Act
The Resilient Tire Supply and Jobs Act creates a new federal incentive and procurement mandate aimed at boosting the use of retreaded tires. It adds a new nonrefundable business tax credit (the retreaded tire credit) for purchases of qualified retreaded tires—defined as tires retreaded in the United States and purchased in the United States. The credit equals the lesser of 30% of the tire cost or $30 per qualified retreaded tire, and it is treated as part of the general business credit. The credit applies to tires placed in service after December 31, 2025, but ends for tires placed in service after December 31, 2028. Separately, the bill requires federal agencies to prefer retreaded tires when available on the GSA tire schedule and directs updating the Federal Acquisition Regulations to reflect this preference within a year of enactment. The overall goal is to strengthen domestic tire retreading, support jobs, and improve supply resilience.
Key Points
- 1Establishes a new retreaded tire credit (Sec. 45BB) as part of the general business credit, equal to the lesser of 30% of qualified retreaded tire expenses or $30 per tire, for tires that are retreaded in the United States and purchased in the United States; the credit terminates for tires placed in service after 12/31/2028.
- 2Applies to tires placed in service after 12/31/2025, with the credit calculated based on the “qualified retreaded tire expenses” paid or incurred for each qualified retreaded tire.
- 3Requires the Secretary to issue regulations and guidance to implement the credit.
- 4Adds Sec. 45BB to the Internal Revenue Code and makes a clerical amendment to reflect the new credit as part of the general business credit.
- 5Mandates federal procurement preference: if a retreaded tire is available on the GSA tire schedule in the desired size, load range, and tread designation, the agency head must order the retreaded tire instead of a new tire; FAR must be amended to enforce this within one year of enactment.