Bill Overview
Title: Commercial Vehicle Fleet Retreaded Tire Utilization Reinvestment and Recovery Act of 2022
Description: This bill allows a new tax deduction through 2026 for 50% of the cost of purchasing a qualified retreaded tire (i.e., a retreaded truck tire manufactured in the United States by a manufacturer that is not owned or under the control of a state-owned enterprise and purchased by the taxpayer in the United States).
Sponsors: Rep. Ryan, Tim [D-OH-13]
Target Audience
Population: Individuals whose livelihoods depend on the commercial vehicle industry, including fleet operators, retreaded tire manufacturers, and associated sectors
Estimated Size: 1500000
- The bill provides tax deductions for the purchasing of retreaded truck tires. This indicates that the primary users, commercial vehicle fleet operators, will be economically impacted.
- Tire manufacturers that deal in retreaded tires within the United States may see an increase in demand due to incentivized purchases by fleet operators.
- The economic impact on commercial fleet operators might allow for reduced operational costs, potentially impacting pricing and services offered by such fleets, affecting clients across various industries.
- The bill mentions a manufacturer not owned or controlled by a state-owned enterprise, indicating that targeted manufacturers are privately-owned U.S.-based companies.
Reasoning
- Given the scope of the policy, the main beneficiaries are likely to be commercial vehicle fleet operators due to reduced tire costs, and retreaded tire manufacturers who may see increased sales volumes.
- Fleet size and financial capacity will determine how much benefit an individual operator can directly gain from the policy. Operators with larger fleets may save more significantly through the cumulative effects of tax deductions.
- The policy should have a negligible effect on individuals not involved in commercial fleet operations or the retreaded tire industry.
- Manufacturers with factories in rural locations might see more significant local economic impacts, possibly lifting community well-being indirectly.
- Retreaded tire manufacturers collaborating with commercial fleets for volume orders could experience higher growth, with smaller operations possibly capitalizing on niche markets.
- Given the budgetary constraints, the policy needs to meticulously target the most cost-effective retread options and high-use fleets to maximize benefits.
Simulated Interviews
Owner of a small commercial trucking company (Dallas, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- This policy could really help reduce our maintenance costs and keep us competitive.
- The cost of tires is one of our major recurring expenses, so any savings help us reinvest in the business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Manager at a retread tire manufacturing company (Columbus, OH)
Age: 38 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- We expect an increase in orders due to the tax incentive.
- Our challenge will be meeting the increased demand without compromising quality.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Logistics Manager for a national retail chain (Los Angeles, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- Our fleet might need future partnerships with retread providers due to this policy.
- Long-term, this could reduce logistic costs significantly, improving our operational budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Tire technician (Rural Wisconsin)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- It's good to see more focus on retreading which is often overlooked.
- With more work, we'll have opportunities for job stability, which is welcome here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Independently contracted truck driver (Phoenix, AZ)
Age: 32 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- Every bit of savings helps, but I doubt the policy will directly affect independent drivers like me much.
- I hope the benefits trickle down in terms of better general road service.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 3 |
Financial Analyst (New York, NY)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 18/20
Statement of Opinion:
- The policy is an interesting development; however, its direct impact might be limited to cost-heavy operations.
- Smaller fleets should closely analyze the real savings against the administrative processes involved.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Retired Truck Driver (Chicago, IL)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 16/20
Statement of Opinion:
- Tax credits are complicated but definitely beneficial for the bigger guys.
- For someone like me, who is retired, there isn't much personal impact, but I like the focus on sustainability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Tire sales representative (Miami, FL)
Age: 44 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I expect this policy to boost our sales figures significantly.
- We'll need to adjust our sales strategies to emphasize these savings to clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Owner of a retread tire manufacturing operation (Houston, TX)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 11/20
Statement of Opinion:
- Retreading has always needed more attention, this policy brings that.
- I foresee new investments and expansion opportunities here, benefiting not just us, but our local economy too.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Environmental Policy Consultant (Seattle, WA)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- Anything promoting sustainability is a step in the right direction.
- With this policy, there's new ground for collaboration between economics and environmentalism in the transportation sector.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $800000000 (Low: $600000000, High: $1000000000)
Year 2: $820000000 (Low: $620000000, High: $1050000000)
Year 3: $850000000 (Low: $640000000, High: $1100000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Retreaded tires are generally less expensive to purchase and use than new tires, potentially leading to cost savings for fleet operators.
- The environmental benefits of using retreaded tires could potentially reduce costs associated with waste management and environmental impacts.
- The immediate decrease in tax revenues due to the deductions could be balanced by longer-term economic growth in related sectors.