USTMA: Tax credits for retreaded tyres would “level the global playing field”

The U.S. Tire Manufacturers Association (USTMA) and its member companies have voiced their support for a legislative proposal to incentivise retreading. The Commercial Vehicle Fleet Retreaded Tire Utilization Reinvestment and Recovery Act of 2022 (H.R. 8165), introduced to the United States Congress this week, would provide tax credits for fleet purchases of US retreaded commercial vehicle tyres.

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

Less is more

The USTMA names reduced energy consumption, CO2 emissions and raw material usage, decreased challenges related to tyre disposal and the creation of local job opportunities as key advantages delivered through retreading. The association states that compared to new tyres, retreaded tyres:

• Use 15 US gallons (56.8 litres) less oil and 90 lbs (40.8 kg) less total material per tyre

• Save the USA and Canada about 215 million US gallons (813.9 million litres) of oil per year

• Reduce CO2 emissions by 24 per cent

• Reduce water consumption by 19 per cent

• Reduce air pollution by 21 per cent

• Remove 1.4 billion lbs (635 million kg) per year from the waste stream

In addition, more than 500 retreading sites in the USA and Canada directly support more than 51,000 jobs in the United States. The bill proposed to Congress would, states the USTMA, “provide a financial incentive to promote US manufactured retreaded tyres, therefore protecting and enhancing the US job market.”