A bill to amend the Internal Revenue Code of 1954 to provide for excise tax refunds in the case of certain warranty adjustments on tires.

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 95-916)

Amends the Internal Revenue Code to provide to tire manufacturers excise tax credits or refunds on tread rubber where tax paid tread rubber is: (1) destroyed or wasted in the recapping or retreading process; (2) used in the recapping or retreading of tires the sales of which are later adjusted under a warranty or guarantee; or (3) used in the recapping or retreading of tires which are exported, used, or sold as supplies for vessels or aircraft, sold to State or local governments or sold to nonprofit educational institutions.

Provides for excise tax credits or refunds on retreaded tires which have been sold by a subsequent manufacturer on or in connection with another article manufactured by him, and exported or sold for certain purposes.

Sets forth the method of computing the credit or refund of the manufacturers excise tax where tire warranty or guarantee adjustments have been made in connection with the sale of a replacement tire.

Provides that the period for allowing a credit or making a refund of tire tax or tread rubber tax filed as a result of a warranty or guarantee adjustment shall be one year from the date on which the adjustment is made.

Provides that tires which are exported from the United States, recapped, or retreaded outside the United States and imported into the United States shall be taxed as imported tread rubber to the extent that tread rubber is used in the recapping or retreading.