New Bill Offers $30 Tax Credit for U.S.-Made Retreaded Tires; Feds Must Buy Them First

The “Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025” is essentially a two-pronged effort to make the tire retreading industry a bigger deal in the U.S. It does this by creating a temporary tax break for businesses that use these tires and by mandating that federal agencies buy them whenever possible. This bill is about making sure that the truck you rely on for your delivery or the government vehicle driving past you is rolling on recycled rubber, which has definite implications for both businesses and the environment.

The $30 Tire Tax Credit: What’s the Catch?

Section 2 of the bill introduces a new tax credit for businesses that purchase and put into service qualified retreaded tires—meaning they must have been retreaded and purchased in the United States. If you run a logistics company, a construction firm, or any business with a fleet, this is for you. The credit is calculated based on the cost of the tires, but it maxes out at the lesser of two numbers: 30% of the tire’s cost or a flat $30 per tire. For a business buying dozens of expensive commercial truck tires, that $30 cap might feel a little low, but it’s a clear incentive to choose the retread option over buying new. Here’s the critical detail: this credit is temporary. It only applies to tires put into service between January 1, 2026, and December 31, 2028. If you were thinking about making long-term investments in retreaded tire infrastructure, that short expiration date creates a ticking clock and some uncertainty.

Uncle Sam’s New Shopping List

Section 3 tackles government purchasing, which is often the biggest market driver. This section mandates that federal executive agencies, like the Department of Transportation or the Postal Service, must prioritize retreaded tires for their fleets. Specifically, if the General Services Administration (GSA) schedule lists a retreaded tire that meets the exact specifications—size, load capacity, and tread type—required by the agency, they must buy the retreaded version instead of a new one. To make this stick, the Federal Acquisition Regulation (FAR)—the rulebook for how the government buys everything—has to be updated within one year of the law’s enactment. For the domestic retreading industry, this is a massive guaranteed customer base, which is exactly what the “supply chain security” part of the title implies. However, federal agencies are now facing an administrative burden to update their rules and potentially justify why a retreaded option doesn’t meet their “exact” needs if they choose to buy new.

Real-World Impact: Fleets and Footprints

For the average person, this bill won't change your passenger car tire choices, but it will affect the commercial vehicles that move goods and services. A logistics company running hundreds of trucks could realize significant savings through the tax credit, incentivizing them to adopt a more sustainable practice. Retreading tires saves resources and reduces the millions of scrap tires that end up in landfills annually. The flip side is that the temporary nature of the tax credit (expiring in 2028) means the domestic retreading industry might see a surge in demand followed by a drop-off, making long-term planning difficult. Ultimately, this bill is a direct nudge toward sustainability and domestic manufacturing, using tax policy and procurement mandates to make the retreaded tire a mainstream choice for large-scale operations.