USTMA supports federal retreading incentives bill

WASHINGTON — The U.S. Tire Manufacturers Association (USTMA) and its member companies support new legistlation introduced this week by Ohio Congressman Tim Ryan that would provide tax credits for fleet purchases of U.S.-produced retreaded commercial tires.

The bill, H.R. 8165, the Commercial Vehicle Fleet Retreaded Tire Utilization Reinvestment and Recovery Act of 2022, "would support good paying jobs in Ohio, bolster our domestic supply chain and promote economic growth" by providing a tax deduction to consumers who purchase retreaded tires. Ryan said.

“As we work to transform Ohio's economy and compete with the rest of the world, it’s vital we reinvest in the industries that treat our workers well and keep our economy going,” Ryan said, noting that retreading directly supports more than 51,000 American jobs.

"By providing a tax incentive for consumers who purchase retreaded tires, this legislation will support good-paying jobs, level the playing field for American workers and businesses, and position our manufacturers to once again lead this industry with American products built by American workers," Ryan said.

In disclosing the domestic tire industry's support of the bill, USTMA President and CEO Anne Forristall Luke said: ”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% less likely to be retreaded because of their design and construction."

"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."

Retreading reduces energy consumption, CO2 emissions, raw material usage and tire disposal challenges, and creates local job opportunities, the USTMA said.

According to the USTMA, compared with new tires, retreaded tires:

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

There are more than 500 retreading shops in the U.S. and Canada.

In a letter to congressional leaders earlier this year, the USTMA stated that Congress 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 noted 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.

"Encouraging U.S. fleet managers to purchase retreaded commercial tires is a win-win given the sustainability, jobs, and long-term economic benefits of retreading," Forristall Luke said.

In a press relese issued by Ryan's office, the Democratic congressman — who's running to fill one of Ohio's two Senate seats this year — provided supporting statements of support from Paolo Ferrari, CEO of Bridgestone Americas Inc.,and Dave Beasley, vice president, Goodyear North America Commercial Tires.

"Bridgestone enthusiastically supports the legislation introduced by Congressman Ryan," Ferrari said, "as it addresses sustainability, job growth, and the creation of a more robust domestic supply chain. Increased use of U.S.-manufactured retreaded tires will create local jobs, reduce costs for tire customers, save energy, reduce material consumption and waste, and reduce dependence on tires imported from overseas." 

Beasley noted: “Retreading extends the life of commercial tires, providing a more sustainable option for fleets while also helping them lower their operating costs. We welcome this legislation introduced by Congressman Ryan because it helps deliver these benefits by incentivizing fleet customers to buy commercial retreads and choose new tires that can be retreaded."