Proposed bill to give fleets tax credits for retreading
In May, a new Congressional bill was introduced to incentivize fleets to retread medium-duty truck tires through tax credits. The proposed legislation, H.R. 8578, would also encourage federal fleets to use retread tires as well.
Rep. Emilia Strong Sykes, who represents Ohio's 13th District, is the bill's sponsor. At the heart of that district is the city of Akron, also home of the Goodyear Tire & Rubber Co.
If passed, the bill (now referred to the Committee on Ways and Means and Committee on Oversight and Accountability) w0uld stand to benefit all tire manufacturers engaged in retreading.
“The Tire Industry Association (TIA) fully supports H.R. 8578,” Roy Littlefield IV, VP of government affairs for the TIA told Modern Tire Dealer. “We are enthusiastic about this bill and are collaborating with the U.S. Tire Manufacturers Association (USTMA) and the Tire Retread & Repair Information Bureau (TRIB) to build support and spread awareness."
Littlefield noted any progress is unlikely in the near-term given the current political environment.
“Given the election year constraints, only essential legislation is progressing at this time." he said. "Consequently, we see this bill as an opportunity to lay the groundwork for support in the next Congress if we are unable to find a vehicle to advance the legislation by the end of the year.”
Congress kicked the tires on a similar proposed bill in 2022, as reported by Modern Tire Dealer, but that went nowhere.
Benefits of retreading
Even without tax credits, retreads do offer fleets potential savings. Today, fleets can leverage retreads knowing that they will prove equal performance at a fraction of the price versus purchasing new.
Brian Cunningham, VP of fleet solutions at Bridgestone Americas, previously told Fleet Maintenance that “tires are the third-largest expenditure for a fleet behind people and fuel.”
“Commercial truck fleets can improve their total cost of ownership by incorporating retreads into their tire program," he said. "With many retreads selling for 30 to 50% less than comparable new tires, while performing equal to or better than some quality new tires, retreads provide commercial truck fleets the ability to reduce costs without compromising on performance.”
“Retreading has two fundamental benefits for a fleet, with the first being the total cost of ownership (TCO) savings utilizing the full life-cycle value of the casing,” said Jaye Young, B2B marketing director, On Road, Michelin. “With technological advancements in retreading over the last few decades, a fleet can reliably retread on the drive position, spreading the initial cost of the casing over several lives and leading to significant cost savings.”
“The second benefit,” Young continued, “is for companies that are prioritizing sustainability, as retreading helps to reduce landfill waste and raw material usage.”
