I 
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 addi-
tion to the Committee on Oversight and Government Reform, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation 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 Representa-
tives 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’’. 
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SEC. 2. CREDIT FOR CERTAIN RETREADED TIRES. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by adding at the end of subpart D the following new sec-
tion: 
‘‘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 num-
ber 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. 
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‘‘(d) REGULATIONS AND GUIDANCE.—The Secretary 
shall issue such regulations and guidance as the Secretary 
determines necessary to carry out the purposes of this sec-
tion. 
‘‘(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 BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (40), by strik-
ing 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 De-
cember 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 Admin-
istration tire schedule in the size, load range, and tread 
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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. 
Æ 
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