The regulatory landscape for tyre retreading is undergoing significant change in 2025, as readers of our recent coverage on the EU Taxonomy and EUDR will know. But Europe isn’t the only region seeing policy shifts—attention is also turning to the United States, where new federal legislation is being introduced to support the domestic retreading industry.
Could US Bill Signal the Way Forward for Other Markets?
Today our attention turns to the USA, where a bipartisan effort led by Congressman Darin LaHood (R-IL-16), along with co-sponsors Mike Carey (R-OH-15), Derek Schmidt (R-KS-2) and Emilia Sykes (D-OH-13), has emerged to support the US tyre retreading industry through H.R.3401: Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025.
So, what does H.R: 3401: Retreaded Tire Jobs, Supply Chain Security and Sustainability Act of 2025 do? The bill will create a new federal tax credit equal to the lower of the following two amounts: 30% of their retread tyre costs or $30 per tyre. To be eligible, tyres must be purchased and retreaded in the USA.
The goal is clear: incentivise business and fleets to opt for retreads through targeted tax relief. It’s an obvious win for retreaders—and a strategic move in the ongoing struggle against low-quality tyre imports. Beyond that, the bill would support domestic manufacturing jobs, reduce costs for fleets, and cut down on waste.
In exclusive comments to Retreading Business, David Stevens the Managing Director of TRIB summarised it succinctly, “The bill helps shift purchasing behaviour toward retreads, which keeps more money in the U.S. economy and supports a more sustainable supply chain. That’s a win for retreaders, fleets, and taxpayers alike.
From TRIB’s perspective, HR 3401 represents a major step forward in how policymakers value the retread industry. Retreading has often flown under the radar or been misunderstood, despite its proven benefits. This bill is a meaningful sign that Congress is beginning to understand retreading as a smart, circular, and US job-creating industry. We see this as an opportunity to bring greater awareness to what retreaders contribute to the economy and the environment—and we’ll continue pushing for policies that reflect that value.”
What is the Current State of Play?
HR 3401 which was introduced on May the 14th, 2025 has been referred to the Committee on Ways and Means and the Committee on Oversight and Government Reform. As of today, there is no set timeline for when the committees will take up the bill, but historically this could take anywhere from a few weeks to a few months.
In total, the bill itself could take anywhere from 6-18 months to work its way through Congress and even if it passes, implementation could take another 12-24 months depending on how the IRS and the Treasury approach to rulemaking and guidance.
As we all know, tyre retreading has been under a tidal wave of pressure for a long time now, so when there are glimmers of good news, it’s only natural to want swift action. Good things come to those who wait, and retreaders have waited a long time. But, as Stevens noted, “While we’d love to see quicker action, we’re realistic about the process, and we’re committed to supporting it through every stage.”
Bipartisan Backing Places Bill on Firm Footing
At a time of heightened political division, it’s notable that H.R. 3401 is attracting bipartisan support—something of a rarity these days. The fact that both Democrats and Republicans are backing this effort reflects a shared recognition: supporting retreading is good policy—for the economy and the environment.
Comments from Rep. LaHood as the bill was introduced underlined this point. “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.”
Rep. Sykes echoed that sentiment, “The Retreaded Tire Jobs, Supply Chain Security and Sustainability Act will encourage consumers to purchase high-quality American tyres while keeping more money in their pockets. 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.”
Since its introduction two more representatives have signed on as co-sponsors: Rep. Mike Carey and Rep. Derek Schmidt which could hopefully fuel momentum for broader congressional support.
