A bill to amend the Internal Revenue Code of 1954 to provide refunds in the case of certain uses of tread rubber.

(Reported to Senate from the Committee on Finance with amendments, S. Rept. 94-1348)

Revises the excise tax provisions of the Internal Revenue Code to allow a tax credit or refund 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.

Imposes a tax on tread rubber used in recapping or retreading tires abroad, if those tires are then imported into the United States.

Sets forth the treatment of credits or refunds for the manufacturers excise tax on new tires where sales are later adjusted as the result of a warranty or guarantee. Provides that when a warranty or guarantee adjustment is made on account of a tire, the amount of the deemed overpayment of tire tax is to be the amount that bears the same proportion to the total tax paid on the tire as the price adjustment made to the holder of the warranty or guarantee bears to the total price of a replacement tire.

Revises the statute of limitations to allow a credit or refund of the tread rubber or new tire tax can be obtained for a period of one year after the warranty or guaranty adjustment is made.