Labonte began racing at the age of 15 at Ace Speedway and Concord Motorsports Park. He also ran the Legends Summer Shootout Series at Charlotte Motor Speedway, where he won back-to-back championships in 1996 and 1997. During those two years, be split 25 career victories at Ace and Concord. In 1998, he moved to the USAR Hooters Pro Cup Series, where he finished 3rd in points and posted thirteen top-tens. He also won the Consistency award for finishing nearly 97% of all possible laps during the season. The next season, he had three top-tens in seven starts.