U.S. Tire Manufacturers Applaud Legislative Proposal to Incentivize Tire Retreading

The U.S. Tire Manufacturers Association (USTMA) and its member companies stand in support of H.R. 8165, the Commercial Vehicle Fleet Retreaded Tire Utilization Reinvestment and Recovery Act of 2022, introduced this week by Congressman Tim Ryan (OH-13). The bill would provide tax credits for fleet purchases of U.S. retreaded commercial tires.

“Retreading of commercial tires in the U.S. market has steadily decreased over the last 25 years, due in part to foreign alternatives for new tires, which are 65 percent less likely to be retreaded because of their design and construction,” said Anne Forristall Luke, president and CEO of USTMA. “By providing tax credits to fleet purchasers who buy U.S. retreaded commercial tires, the federal government would be helping to level the global playing field for U.S. tire companies and shift the business model back in favor of retreading, which provides a highly effective way to recycle tires with many notable economic and environmental benefits.”

Commercial tire retreading provides a highly effective way to recycle tires with many additional economic benefits. Each retreaded tire reduces energy consumption, CO2 emissions, raw material usage, and tire disposal challenges and creates local job opportunities.

In fact, compared to new tires, retreaded tires:

• Use 15 gallons less oil and 90 lbs. less total material per tire
• Save the U.S. and Canada about 215 million gallons of oil per year
• Reduce CO2 emissions by 24 percent1
• Reduce water consumption by 19 percent
• Reduce air pollution by 21 percent
• Remove 1.4 billion pounds per year from the waste stream

There are also more than 500 retreading shops in the U.S. and Canada, directly supporting more than 51,000 jobs in the United States. Congressman Ryan’s proposed bill would provide a financial incentive to promote U.S. manufactured retreaded tires, therefore protecting and enhancing the U.S. job market.

As USTMA outlined in a letter to Congressional leaders earlier this year, Congress also has an opportunity to lead by example by requiring the purchase of American-made retreaded tires for the federal fleet and any fleet under federal contract, where possible. USTMA notes there is precedent for such policies, including provisions in the Federal Vehicle Repair Cost Savings Act of 2015 that mandated the use of remanufactured replacement parts on federal fleet vehicles and a 1991 Environmental Protection Agency (EPA) procurement guideline under President George H.W. Bush that required the use of retreaded tires on federal fleet vehicles where practicable.