Resilient Tire Supply and Jobs Act
Summary
The "Resilient Tire Supply and Jobs Act" aims to promote the use of retreaded tires through a tax credit and a requirement for federal agencies to consider using them. The bill introduces a retreaded tire credit, allowing taxpayers to deduct a portion of the cost of qualified retreaded tires. It also mandates federal agencies to prioritize retreaded tires when available.
This legislation seeks to incentivize the purchase and use of retreaded tires, potentially boosting the retreading industry. The Act amends the Internal Revenue Code of 1986 and directs the Federal Acquisition Regulatory Council to revise regulations accordingly.
The bill is set to expire on December 31, 2028, limiting the duration of the tax credit. The Act was introduced in the Senate on September 11, 2025.
Expected Effects
The Act is likely to increase demand for retreaded tires, benefiting the retreading industry and potentially creating jobs. Federal agencies will be required to adjust their procurement processes to consider retreaded tires.
The tax credit may reduce the cost of retreaded tires for consumers and businesses, encouraging their adoption. This could lead to reduced waste and lower environmental impact from tire disposal.
The changes to the Federal Acquisition Regulation will institutionalize the consideration of retreaded tires in government purchasing decisions.
Potential Benefits
- Stimulates the retreaded tire industry, potentially creating jobs.
- Reduces waste by promoting tire retreading.
- Offers a tax credit to consumers and businesses, lowering the cost of retreaded tires.
- Encourages sustainable practices within federal agencies.
- May lead to lower costs for federal fleets due to the use of retreaded tires.
Potential Disadvantages
- The tax credit has a limited lifespan, expiring in 2028.
- The $30 cap on the tax credit may not be a significant incentive for all purchasers.
- Federal agencies may face initial challenges in adapting procurement processes.
- Potential for increased administrative burden related to tracking and claiming the tax credit.
- The effectiveness of the Act depends on the availability and quality of retreaded tires.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to lay and collect taxes (Article I, Section 8) to provide for the general welfare, and this bill uses tax credits to incentivize a specific behavior. The requirement for federal agencies to use retreaded tires falls under Congress's power to regulate government operations. There are no apparent infringements on individual rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).