H.R.3401 - Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025 (119th Congress)
Summary
H.R.3401, the "Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025," aims to promote the use of retreaded tires through a tax credit and a requirement for federal agencies to consider them. The bill introduces a retreaded tire credit under the Internal Revenue Code, incentivizing the purchase of qualified retreaded tires. It also mandates federal agencies to prioritize retreaded tires when available on the General Services Administration (GSA) schedule.
The Act seeks to bolster the retreaded tire industry, enhance supply chain security, and promote environmental sustainability. The tax credit is capped at either 30% of the purchase amount or $30 per tire, and it applies to tires placed in service before January 1, 2029.
Furthermore, the Federal Acquisition Regulation (FAR) will be updated to reflect the new requirements for federal agencies within one year of the Act's enactment.
Expected Effects
The bill is likely to increase demand for retreaded tires, leading to growth in the retreading industry and potentially creating jobs. Federal agencies will be required to adjust their procurement practices to prioritize retreaded tires, impacting tire manufacturers and suppliers. The tax credit may reduce the cost of retreaded tires for businesses and individuals, encouraging their adoption.
This could lead to a decrease in the disposal of used tires, contributing to environmental benefits. The changes to federal procurement could also influence market trends and standards in the tire industry.
Ultimately, the bill could lead to a more sustainable and secure supply chain for tires, with potential economic and environmental benefits.
Potential Benefits
- Job Creation: The bill could stimulate job growth within the retreaded tire industry, from manufacturing to sales and service.
- Cost Savings: The tax credit offers financial incentives for businesses and individuals to purchase retreaded tires, reducing their operational costs.
- Environmental Sustainability: Promoting retreaded tires reduces waste and the need for new tire production, conserving resources and energy.
- Supply Chain Security: Encouraging domestic retreading enhances the resilience of the tire supply chain, reducing reliance on foreign sources.
- Federal Fleet Efficiency: Mandating the use of retreaded tires in federal fleets can lead to cost savings for the government.
Potential Disadvantages
- Potential for Lower Performance: Retreaded tires may not always perform as well as new tires, potentially affecting safety and efficiency in some applications.
- Administrative Burden: Federal agencies may face increased administrative burden in complying with the new procurement requirements.
- Limited Credit Duration: The tax credit's expiration in 2028 may limit its long-term impact on the retreaded tire market.
- Market Distortion: The tax credit and federal mandate could distort the tire market, potentially disadvantaging manufacturers of new tires.
- Enforcement Challenges: Ensuring compliance with the federal mandate and proper qualification for the tax credit may pose enforcement challenges.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble), as it aims to promote economic growth, environmental sustainability, and efficient government spending. The establishment of a tax credit falls under Congress's power to lay and collect taxes (Article I, Section 8). The regulation of federal procurement aligns with Congress's authority to manage government property and operations.
However, the bill's impact on interstate commerce could be subject to scrutiny under the Commerce Clause (Article I, Section 8), although the promotion of domestic retreading could be argued as supporting national economic interests.
Overall, the bill's provisions seem to fall within the enumerated powers of Congress.
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).