Credit for certain retreaded tires

(a) In general Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end of subpart D the following new section: 45BB. Retreaded tire credit (a) In general For purposes of section 38, the retreaded tire credit for any taxable year is an amount equal to the sum of the qualified retreaded tire expenses paid or incurred by the taxpayer with respect to any qualified retreaded tire. (b) Qualified retreaded tire expenses For purposes of this section, the term qualified retreaded tire expenses means, with respect to any qualified retreaded tire, the lesser of— (1) 30 percent of the amount paid or incurred by the taxpayer for such tire, or (2) $30. (c) Qualified retreaded tire For purposes of this section, the term qualified retreaded tire means any tire which— (1) has been retreaded in the United States, and (2) is purchased by the taxpayer in the United States. (d) Regulations and guidance The Secretary shall issue such regulations and guidance as the Secretary determines necessary to carry out the purposes of this section. (e) Termination No credit shall be determined under this section with respect to qualified retreaded tires placed in service after December 31, 2028.. (b) Credit allowed as part of general business credit Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41), and by adding at the end the following new paragraph: (42) the retreaded tire credit determined under section 45BB(a).. (c) Clerical amendment The table of sections for part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45BB. Retreaded tire credit.. (d) Effective date The amendments made by this section shall apply to tires placed in service after December 31, 2025.