H.R. 3401 — Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025

This section establishes a new general business credit (i.e., retreaded tire credit under new IRC §45BB) equal to the lesser of (1) 30% of the amount paid or incurred by the taxpayer to purchase qualified retreaded tires placed in service during the taxable year or (2) $30 multiplied by the number of such tires. A qualified retreaded tire is one retreaded and purchased in the United States, with the credit available for tires placed in service after December 31, 2025, and terminating for tires placed in service after December 31, 2028.

This section requires the head of an agency—defined as an executive agency under 41 U.S.C. 133 (i.e., executive departments, military departments, independent establishments, and wholly owned government corporations fully subject to 31 U.S.C. chapter 91)—to order a retreaded tire from the General Services Administration (GSA) tire schedule in the desired size, load range, and tread designation, if available, instead of a new tire. The section further requires the Federal Acquisition Regulation to be updated to incorporate this requirement not later than one year after enactment.