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Congress Is Weighing a Federal Tax Credit for Retreaded Tires — What Fleets Should Know

A bipartisan bill in Congress would create a tax credit and a federal procurement preference for retreaded tires. It hasn't passed. Here's exactly what it proposes and where it stands.

Published September 1, 2026 · Good Hope Retreaders

Important upfront: this is not yet law, and it's U.S.-only. A bill has been introduced in both chambers of the United States Congress that would create a federal tax credit for buying retreaded tires. It's still at the "introduced" stage — it has not passed committee, either chamber, or been signed into law. And because it's U.S. federal tax and procurement legislation, it would apply to U.S. taxpayers and fleets purchasing tires in the U.S. — it has no bearing on Canadian tax law, Canadian federal procurement, or any purchase made in Canada. This post explains what the bill actually proposes, who's behind it, and where it realistically stands, so you can track it accurately rather than off a headline.

The bill: H.R.3401 / S.2790

The Retreaded Tire Jobs, Supply Chain Security, and Sustainability Act is a bill introduced in the 119th Congress with cosponsors from lawmakers across both major parties. The House version, H.R.3401, was introduced May 14, 2025 by Rep. Darin LaHood, with nine cosponsors including Rep. Emilia Sykes, Rep. Mike Carey, and Rep. Derek Schmidt. It was referred to the House Ways and Means Committee and the House Oversight and Government Reform Committee, where it currently sits. A companion bill, S.2790, was introduced in the Senate by Sen. Jon Husted and cosponsored by Sen. Roger Marshall.

What it would actually do

If enacted as introduced, the bill would:

• Create a tax credit for retreaded tire purchases — up to $30 per retreaded tire, or 30% of the purchase price, whichever framework applies, for eligible purchasers.
• Apply to both public and private fleets. The credit isn't limited to government buyers — commercial fleet operators purchasing retreads would also be eligible.
• Establish a federal procurement preference for retreads in appropriate public-sector fleet applications — directing federal agencies to favor retreaded tires where they're a suitable fit.
• Apply only to U.S. purchasers. This is a U.S. federal tax credit tied to U.S. tax filings and U.S. federal procurement rules. It would not extend to fleets purchasing or filing taxes in Canada or any other country.

The stated goals behind it, per its sponsors and industry backers, are reducing fleet operating costs, strengthening domestic tire-industry supply chains, and supporting the jobs tied to U.S. retreading capacity.

Who's pushing it

The Tire Industry Association (TIA) and the Tire Retread & Repair Information Bureau (TRIB) — the same organizations behind the published safety and performance data the retread industry regularly cites — led a delegation of retread industry leaders to Capitol Hill in July 2026 to advocate for the bill directly with members of Congress. Coverage of that advocacy push also notes TIA and TRIB are exploring whether the bill's provisions could be attached to larger must-pass legislation — year-end tax packages, the National Defense Authorization Act, or a surface transportation reauthorization — as more realistic paths to passage than the standalone bill moving on its own.

Where it actually stands

As of this writing, both H.R.3401 and S.2790 remain at the introduced stage, sitting in committee. That's an early point in the legislative process — the large majority of bills introduced in Congress never receive a committee vote, let alone reach the floor. Bipartisan sponsorship and organized industry advocacy improve a bill's odds, but they're not a predictor of passage, and there's no committee vote or floor schedule to point to yet.

The practical takeaway for fleets: this is worth tracking, not budgeting around. If it advances — particularly if it gets folded into a larger tax or transportation package — it would meaningfully sweeten the economics of a purchase decision that already favors retreading. But nothing in current law changes what a retread costs today.

The case this legislation is riding on

Whether or not the tax credit passes, the underlying economics it's built around are already real and already documented: retreads typically cost 30–50% of a comparable new tire per cycle, and a well-managed casing can be retreaded multiple times before retirement. That's the case for retreading with or without a federal incentive attached — a credit would just make it stronger. For the fuller cost-per-mile picture, see our retreads vs. new tires cost breakdown and the underlying TRIB/TIA safety data this legislation's backers also publish.

Building your retread capability now?

This U.S. tax credit — whether or not it eventually passes — doesn't change anything for Canadian operations, and it doesn't change our pricing either way. The equipment and consumables case for retreading stands on its own. We supply retread machinery, consumables, components, and repair tools with transparent all-in Canadian pricing and delivery from our Ontario warehouse.

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