Congress quietly subsidizes tire retreading—but mostly for big fleets
H.R. 3401 — Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025 · Filed by Darin LaHood (R-IL) · 9 cosponsors · Introduced May 14, 2025 · Referred to committee
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What it does
This bill creates a tax credit for businesses that purchase U.S.-made retreaded tires (up to $30 per tire or 30% of purchase cost, whichever is less) through the end of 2028, and requires federal agencies to buy retreaded tires when available instead of new ones. The stated goal is to support domestic tire retreading jobs, reduce waste, and strengthen supply chain resilience.
Why we flagged it
The bill's primary mechanism is a business tax credit for purchasing retreaded tires, combined with a federal procurement mandate. While framed as supply-chain and sustainability policy, it functions as an industry subsidy targeting a specific product category.
What the text implies
- The $30-per-tire cap may incentivize bulk purchases by large fleet operators (UPS, JBHT, trucking companies) more than small businesses, concentrating subsidy benefits.
- Federal procurement mandate could increase costs for GSA and agency budgets if retreaded tires are more expensive than new tires in some categories, shifting costs to taxpayers.
The full analysis lists 4 implications of this text.
Who stands to gain
tire retreading companies; large fleet operators (logistics, trucking); businesses with high tire replacement costs