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110TH CONGRESS 
2D SESSION 
H. R. 5103 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax to vehicle fleet operators for purchasing tires made from 
recycled rubber. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 23, 2008 
Mr. JOHNSON of Georgia (for himself, Mr. KNOLLENBERG, Mr. CUMMINGS, 
Ms. CLARKE, Mr. AL GREEN of Texas, Mr. LEWIS of Georgia, Mr. 
ELLISON, Mr. PERLMUTTER, Mr. CROWLEY, Ms. WATSON, Mr. KAGEN, 
and Ms. LINDA T. SA´NCHEZ of California) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
credit against income tax to vehicle fleet operators for 
purchasing tires made from recycled rubber. 
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 ‘‘Tire Investment, Re-
covery and Extension Act of 2007’’ or the ‘‘TIRE Act of 
2007’’. 
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SEC. 2. FINDINGS. 
(1) The majority of rubber used by industry in 
the United States is synthetic rubber that has been 
derived from petroleum. 
(2) The tire industry is the largest consumer of 
rubber in the United States, using over 3 billion 
pounds of rubber annually to produce over 250 mil-
lion tires. 
(3) Recycled rubber from scrap tires can be 
used in the production of new tires at loadings ex-
ceeding 10 percent of the weight of rubber in the 
tire if the particle size of the recycled rubber is ex-
tremely fine (80 mesh/177 microns or finer) and the 
particles are free from impurities such as steel and 
fiber. 
(4) On average, the United States can save a 
gallon of oil for every tire produced incorporating 10 
percent recycled rubber. 
(5) On average, for every pound of recycled 
rubber used as an alternative to synthetic rubber, 
the United States will prevent a pound of carbon di-
oxide from being released into the atmosphere. 
(6) An independent study has determined that 
air permeability in a standard tire can be reduced by 
up to 50 percent when using recycled content. If re-
cycled content is used in every passenger car in the 
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United States, it would result in a fuel savings of up 
to 750 million gallons per year. 
SEC. 3. CREDIT FOR PURCHASES BY VEHICLE FLEET OPER-
ATORS OF TIRES MADE FROM RECYCLED 
RUBBER. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 450. PURCHASES BY VEHICLE FLEET OPERATORS OF 
TIRES MADE FROM RECYCLED RUBBER. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, in the case of an eligible taxpayer, the recycled 
rubber tire credit determined under this section is $3 for 
each qualified tire purchased by the taxpayer during the 
taxable year for use on a highway motor vehicle used in 
a trade or business of the taxpayer. 
‘‘(b) DOLLAR LIMITATION.— 
‘‘(1) IN
GENERAL.—The credit determined 
under this section for any taxable year shall not ex-
ceed— 
‘‘(A) $10,000,000 in the case of taxable 
years ending during the first year beginning 
after the date of the enactment of this section, 
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‘‘(B) $15,000,000 in the case of taxable 
years ending during the 2nd such year, 
‘‘(C) $25,000,000 in the case of taxable 
years ending during the 3rd, 4th, or 5th such 
year, and 
‘‘(D) except as provided in paragraph (2), 
zero thereafter. 
‘‘(2) CARRYOVER OF UNUSED LIMITATION.—If 
the limitation under this subsection for any taxable 
year (after the application of this paragraph) ex-
ceeds the credit determined under this section for 
such year, such limitation for the succeeding taxable 
year shall be increased by the amount of such ex-
cess. No amount may be carried under the preceding 
sentence to any taxable year ending after the 6th 
year beginning after the date of the enactment of 
this section. 
‘‘(3) AGGREGATE
LIMITATION.—In no event 
shall the aggregate credit determined under this sec-
tion for a taxpayer for all taxable years exceed 
$100,000,000. 
‘‘(c) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion, the term ‘eligible taxpayer’ means any person who 
regularly uses more than 100 vehicles in any trade or busi-
ness of such person during the taxable year. 
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‘‘(d) QUALIFIED TIRE.—For purposes of this sec-
tion— 
‘‘(1) IN
GENERAL.—The term ‘qualified tire’ 
means— 
‘‘(A) any qualified new tire, and 
‘‘(B) any qualified retread tire. 
‘‘(2) QUALIFIED NEW TIRE.—The term ‘quali-
fied new tire’ means any tire (other than a retread 
tire) if— 
‘‘(A) the tire is manufactured in the 
United States, 
‘‘(B) the original use of the tire begins 
with the taxpayer, and 
‘‘(C) at least the new tire percentage of the 
total weight of the rubber in the tire is attrib-
utable to recycled rubber powder. 
‘‘(3) QUALIFIED
RETREAD
TIRE.—The term 
‘qualified retread tire’ means any retread tire if— 
‘‘(A) the tire is of a type used on highway 
motor vehicles having a gross vehicle weight 
rating of at least 2,600 pounds, 
‘‘(B) the tire is retreaded in the United 
States, 
‘‘(C) the original use of the tire (after re-
treading) begins with the taxpayer, and 
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‘‘(D) at least the retread tire percentage of 
the total weight of the rubber in the retread 
portion of the tire is attributable to recycled 
rubber powder. 
‘‘(4) RECYCLED CONTENT PERCENTAGES.—The 
new tire percentage and the retread tire percentage 
shall be determined in accordance with the following 
table: 
‘‘If the tire is purchased 
during— 
The new 
tire 
percentage 
is— 
The retread 
tire 
percentage 
is— 
the 1st year after the date of the enactment of 
this section ..........................................................
the 2nd such year ...................................................
the 3rd such year ....................................................
the 4th such year ....................................................
the 5th such year ....................................................
‘‘(5) RECYCLED RUBBER POWDER.—The term 
‘recycled rubber powder’ means recycled vulcanizate 
particulate rubber at a size classification of 80 mesh 
or finer as defined in the ASTM standard D5603– 
01. 
‘‘(e) CONTROLLED GROUPS.—For purposes of this 
section, all persons treated as a single employer under sub-
section (a) or (b) of section 52 or subsection (m) or (o) 
of section 414 shall be treated as one person, and the dol-
lar limitation applicable under subsection (b) for any tax-
able year shall be allocated among such persons in propor-
tion to their purchases of qualified tires during such year. 
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(3) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45O. Purchases by vehicle fleet operators of tires made from recycled 
rubber.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to purchases made after the date 
of the enactment of this Act in taxable years ending after 
such date. 
Æ 
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