Husted introduces bill to lower tire costs and shore up American industry

WASHINGTON - Sen. Jon Husted (R-Ohio) introduced the Resilient Tire Supply and Jobs Act. This bill would create a new federal tax credit for taxpayers who buy and use retreaded tires that are made in America. Sen. Roger Marshall (R-Kan.) is an original cosponsor of the bill.

"Encouraging Americans to use tires retreaded in America leaves consumers with more cash and the U.S. tire industry with more jobs. I'm proud to lead this bill and help keep more money in Ohioans' pockets with tires we make right here in America," said Husted.

"Kansas relies on strong logistics networks and sound transportation-and for the trucking industry, quality tires are critical to keeping our goods moving. I am proud to support the Resilient Tire Supply and Jobs Act, which will incentivize the adoption of American-made, domestically retreaded tires, many of which are manufactured in Kansas, cutting down on waste and reducing the reliance on low-quality imported tires," said Marshall.

"The Resilient Tire Supply and Jobs Act provides a critical incentive to support local jobs, help commercial truck fleets operate more efficiently and reinforces our leadership in domestic manufacturing. Tire retreading is essential to keeping America's trucking fleets moving and supports thousands of U.S. jobs, delivering real cost savings and operational benefits for the commercial trucks that move our nation's economy. We thank Senator Husted for his leadership in strengthening America's retread industry and securing this vital domestic supply chain today and into the future," said Joe Burke, vice president of North America commercial and global aviation, The Goodyear Tire & Rubber Company.

"Trucks travel hundreds of billions of miles every year to make essential deliveries to every community in America, which is why sustainability is a top priority for our industry. The millions of retreads that are manufactured and installed domestically each year enable tires to last three times longer and provide significant environmental and cost benefits. We commend Senator Husted for introducing this bill in the Senate to incentivize safely extending the life of high-quality American tires, which will directly support tens of thousands of jobs, protect our national security, and keep our economy rolling," said Henry Hanscom, senior vice president of legislative affairs, American Trucking Associations.

"We thank Senator Husted for introducing this bill in the Senate, and we are pleased to see the issue gaining support in Congress. Tire retreading in the U.S. is a critical industry supporting manufacturing jobs and transportation resiliency. This legislation will help reduce costs for our customers and save on energy and material costs," said Scott Damon, chief executive officer of Bridgestone West, group president of Bridgestone Americas.

"This legislation is about more than just tires-it's about investing in American workers and promoting a sustainable and innovative manufacturing sector. Approximately 15 million tires are retreaded annually in the U.S, including nearly 44% of commercial truck tires in the U.S. and Canada. By providing tax credits to fleet purchasers who buy American-made retreaded commercial tires, we have a critical opportunity to support domestic manufacturing and strengthen our national economy," said Anne Forristall Luke, president and CEO of the U.S. Tire Manufacturers Association.

"Penske Truck Leasing operates and maintains a fleet of more than 440,000 vehicles in North America, with 780 associates working in Ohio across 43 locations. Safe, reliable tires are essential to keeping the trucking supply chain moving forward. Retread tires play a significant role in our operations by providing our fleet customers with continued reliability, on-road performance, affordability, and enhanced sustainability. We thank Senator Husted for his leadership on this issue," said Paul Rosa, senior vice president of procurement & fleet planning, Penske.

"The use of retreaded tires is an integral component of WM's Fleet maintenance and repair strategy. A properly implemented retread program enables the casings of vehicles to be reused which lowers our operating costs and reduces the amount of waste generated from the operation of our assets. Retreading also allows us to buy locally, which drives economic value in the communities where WM operates while creating more secure and sustainable supply chains," said Torrey Andrews, director of innovation and business optimization for supply chain, Waste Management.

"Retreading is a critical part of BD Transportation's maintenance program. When our fleet purchases new equipment, our plan is to 'run out' all of the new tires and replace them with retreaded tires on both our drive and trailer wheel positions. By retreading, our cost on replacement tires are a third of what a new tire would cost if we would purchase new tires as replacements. Retreading provides us a cost-effective option to reuse our tire casing asset and preventing it from ending up in a landfill somewhere. Retreading also provides jobs in our communities and feel that this is an ecological approach to the environment," said Christina Douglas, maintenance coordinator, BD Transportation.

"Freight Service Inc. has been using retreads for over 50 years. Obviously, the biggest reason we continue to use retreads is the cost savings, retreads are about 35% the cost of new tires and the miles per 32nd are almost as good as new tires. The other factor is if you buy quality tires, you can recap the tire multiple times. We recap tires up to 10 years of age and still have a tire that will last until the tread is worn out. We have seen that the retreading process has improved over the last 50 years, so much that we rarely have a problem with the retread coming off. Also, if we happen to damage a recap tire, we do not lose as much money because we have less invested in the tire. Reusing our tires/casings as long as possible, will help reduce the scrap going to landfills which has helped the environment. Everyone I have talked to over the last 41 years since I have been in this position, I explain the benefits of retreading," said Dennis Ankrum, director of maintenance, Freight Service, Inc.

To be eligible for a tax credit, the tire would have to be retreaded in the U.S. and be purchased in America.

Taxpayers could claim a credit each year equal to the lesser of:

• 30% of the cost of eligible retreaded tires, or
• $30 per tire (for each tire placed in service that year).

Background:

Tire retreading is a manufacturing process that replaces worn tread to help extend the tire's life. Low-quality imports undermine the retreading industry and weaken safety and quality for consumers. The Resilient Tire Supply and Jobs Act would provide a market remedy through the tax credit, which boosts this important industry by lowering costs, creating jobs and accelerating capital investment. The commonsense proposal would benefit American workers, businesses and consumers.

Full text of the bill is available here.