Congress quietly subsidizes tire retreading—at taxpayer expense
S. 2790 — Resilient Tire Supply and Jobs Act · Filed by Jon Husted (R-OH) · 2 cosponsors · Introduced Sep 11, 2025 · Referred to committee
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What it does
This bill creates a federal tax credit of up to $30 per retreaded tire (30% of cost, whichever is less) for businesses that purchase U.S.-made retreaded tires, running through 2028. It also requires federal agencies to buy retreaded tires instead of new ones when available in the sizes and specifications they need.
Why we flagged it
The bill's core mechanism is a direct tax credit (up to $30 per tire) for a specific industry segment (tire retreaders), combined with a federal procurement requirement. This is classic industry support legislation, not a broad public-interest measure.
What the text implies
- Federal agencies may face higher procurement costs if retreaded tires cost more per unit or require more frequent replacement than new tires, shifting costs to taxpayers without explicit budget authorization.
- The tax credit sunsets in 2028, creating uncertainty for retreading businesses and potentially leaving stranded investments if the industry does not mature by then.
The full analysis lists 4 implications of this text.
Who stands to gain
tire retreading companies; tire distributors and retailers; businesses purchasing retreaded tires