Lawmakers have introduced a bill intended to support domestic manufacturing by creating a tax credit to incentivize the purchase of American retreaded tires.
The Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025 bill was reintroduced by Reps. Darin LaHood (IL-16) and Emilia Sykes (OH-13) in May 2025.
The bill would provide a 30% tax credit on the cost of each qualifying retreaded tire, with a maximum credit of $30 per tire.
To qualify for the tax credit, the tire must be retreated in the U.S. and purchased by a taxpayer in the U.S.
According to a news release from LaHood, the bill seeks to support American manufacturing and reduce dependence on Chinese tires:
“Tire retreading is a manufacturing process that replaces the tread on worn tires to help extend the life of the tire. However, cheap, low-quality tires imported from countries like China have flooded the market and harmed this important U.S. industry. Incentivizing the purchase of high-quality retreaded tires will help protect and create local jobs, reduce consumer costs, improve efficiency, and reduce dependence on low-quality overseas products.“
The bill has been referred to the Committee on Ways and Means for consideration.
“Illinois’ 16th Congressional District has deep ties to the automotive industry,” said Rep. LaHood. “The Retreaded Tire Jobs, Supply Chain Security and Sustainability Act is a common-sense bill that strengthens our domestic supply chain, supports high-paying American manufacturing jobs, and slashes red tape. I am proud to reintroduce this bipartisan legislation alongside Congresswoman Sykes to invest in our manufacturing sector while increasing American competitiveness.”
“The Retreaded Tire Jobs, Supply Chain Security and Sustainability Act will encourage consumers to purchase high-quality American tires while keeping more money in their pockets,” said Rep. 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 American manufacturing to ensure this vital industry remains globally competitive.”
“The Retreaded Truck Tire Jobs, Supply Chain Security, and Sustainability Act is a vital step toward strengthening the U.S. truck tire industry, creating jobs, and supporting fleets,” said Joe Burke, Vice President, Goodyear North America Commercial & Global Aviation. “This legislation provides a much-needed tax credit to incentivize retread purchases, driving demand at domestic tire retreading facilities and supporting local manufacturing jobs that cannot be offshored. Retreading has long been a best practice for large fleets, helping them reduce operating costs, and this bill ensures small and medium-sized fleets can take advantage of this proven strategy as well. By expanding access to retreaded tires, we can strengthen American industry while providing fleets with a cost-effective, high-quality solution for their operations.”
