MARCH 2008

Congressman proposes tire recycling tax incentive

Rep. Hank Johnson introduced legislation that would provide temporary tax credits to companies that use recycled tire content in their vehicle fleets.

The proposed TIRE Act, H.R. 5103 amends the Internal Revenue Service Code of 1986 to allow a $3 per tire credit for 5 years against income tax for fleet operators that purchase tires made from recycled rubber. The TIRE Act caps incentives at $100 million.

“This is a common sense approach to dealing with the millions of tires that are discarded every year. Tire recycling is environmentally friendly and is a fuel-efficient, cost-effective way of reducing waste and our dependency on foreign oil,” said Rep. Johnson.

To produce a tire requires 7 gallons of petroleum and each truck tire requires 22 gallons. Every tire made with 10 percent recycled rubber, Rep. Johnson explained, saves one gallon of oil in the manufacturing process. The TIRE Act will encourage companies to buy tires with recycled rubber content to help reduce our dependence on foreign oil.

Joining Congressman Johnson are 11 original cosponsors: Rep. Joe Knollenberg, Rep. Joe Crowley, Rep. Diane Watson, Rep. John Lewis, Rep. Ed Perlmutter, Rep. Elijah Cummings, Rep. Al Green, Rep. Yvette Clarke, Rep. Steve Kagen, Rep. Linda Sanchez, and Rep. Keith Ellison.