Allows a tax credit or refund under the Internal Revenue Code of 1954 in the case of tread rubber for which a tax was paid and which is: (1) destroyed, scrapped, wasted, or rendered useless in the recapping or retreading process; (2) used in the recapping or retreading of tires the sale of which is later adjusted pursuant to a warranty or guaranty, in which case the overpayment shall be in proportion to the adjustment in the sales price; or (3) used in the recapping or retreading of a tire, if such tire is by any person exported, used or sold for use as supplies for vessels or aircraft, sold to a State or local government, or sold to a nonprofit educational organization for its exclusive use.
Provides that a tax payment on tread rubber used in further manufacturing shall be considered an overpayment if the rubber is sold, in connection with any other article produced, to a State or local government, nonprofit educational organization or used for supplies for vessels or aircraft.
Requires the credit or refund, in the case of a new tire the sale of which is later adjusted as the result of a warranty or guaranty, to be in proportion to the adjustment in the sales price of such tire. (Amends 26 U.S.C. 6416(b))
Introduced in House
Introduced in House
Referred to House Committee on Ways and Means.
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