New Act Offers $30 Tax Credit for Buying U.S.-Retreaded Tires, Mandates Federal Fleet Use

The “Resilient Tire Supply and Jobs Act” is essentially a two-part plan to boost the domestic tire retreading industry—that’s the process of taking a worn-out tire casing and putting a new tread on it. Starting after December 31, 2025, and running through 2028, the bill creates a new tax credit for anyone buying an eligible retreaded tire. This credit lets you claim the lesser of 30% of the cost of the tire or a flat $30 per tire, provided it was retreaded and purchased within the United States (Sec. 2).

The $30 Credit: What It Means for Your Budget

For most people, the immediate impact is that $30 off a tire purchase is a nice incentive to choose a retread. Retreaded tires are typically already cheaper than brand-new ones, so adding a tax credit on top makes them even more competitive. Think about the small business owner running a local delivery service or a construction foreman managing a fleet of trucks: every dollar saved on maintenance adds up fast. If a retreaded commercial truck tire costs, say, $150, the 30% rule would give you $45, but the credit caps out at $30. If you buy four tires for a work vehicle, that’s $120 back on your taxes, which is real money you can put back into the business. This measure is designed to encourage both individuals and businesses to support domestic manufacturing and tire recycling, but remember, the clock runs out at the end of 2028.

Uncle Sam’s New Shopping List

The second major provision changes how federal agencies buy their tires, which can be a huge market driver. The bill mandates that if a federal agency needs a specific type of tire—matching size, load, and tread—and that exact specification is listed as a retreaded option on the General Services Administration (GSA) schedule, the agency must buy the retreaded version (Sec. 3). This is a significant shift from simply allowing retreads to actively prioritizing them when available.

This mandate means the federal government—which runs massive fleets from the Postal Service to the Department of Transportation—will become a guaranteed major customer for U.S. retreaders. The Federal Acquisition Regulatory Council has one year to update the official purchasing rules (FAR) to bake this requirement in. This move aims to stabilize and strengthen the domestic supply chain for tires by ensuring a baseline level of demand for American-made retreads. For the companies that do this work, it provides predictable contracts and potentially more jobs. For the taxpayer, it could mean lower costs for government vehicle maintenance, as retreads are often less expensive than new tires, without sacrificing required performance.