On Monday, U.S. Reps. Darin LaHood (R-IL) and Emilia Sykes (D-OH) introduced legislation to lower tire costs by providing a tax credit for purchasing retreaded tires.
The legislation, Retreaded Truck Tire Jobs, Supply Chain Security and Sustainability Act, would provide U.S. consumer with tax credits for purchasing tires that have had the tread on them replaced. The legislation will help create good-paying jobs, bolster the domestic supply chain and promote economic growth, the law makers said.
“As Illinois residents continue to face challenges related to inflation and the high cost of goods, this commonsense, bipartisan bill will incentivize the purchase of American-made tires and create jobs in communities across the country,” LaHood said. “This bill makes an important investment in our manufacturing sector in Illinois, ensuring we keep jobs at home. I look forward to working with Congresswoman Sykes and my Ways and Means Committee colleagues to strengthen economic opportunities throughout the Midwest and America.”
According to a 2023 report from U.S. Tires, retread is the largest manufacturing sector in the country with more than 51,000 workers. The industry supports more than 268,000 jobs across larger tire industry, the report said. However, the number of tire retreading facilities in the U.S. has dropped from over 3,000 in 1982 to an estimated 500 in 2023. Due to the low cost of importing tires, closures of more plants is likely, the Congress members said.
“The Retreaded Truck Tire Jobs, Supply Chain Security and Sustainability Act will encourage consumers to purchase high-quality American tires while putting more money back into their pockets,” Sykes. “This commonsense, bipartisan legislation is good for both the economy and the environment, and it will protect thousands of good-paying manufacturing jobs here at home. Ohio’s 13th Congressional District has long been known as the ‘Rubber Capital of the World’ — this legislation upholds that legacy by Investing in America to ensure this vital industry remains globally competitive.”
The legislation is supported by several auto industry leaders and manufacturers.
“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,” Paolo Ferrari, CEO of Bridgestone Americas, Inc. and Global Co-COO of Bridgestone Corporation, said.