HR2814-119

What This Bill Does

The Transportation Freedom Act combines an auto-manufacturing tax incentive with a rollback and replacement of vehicle emissions and fuel-economy rules. It creates section 199B, a 200 percent deduction for eligible wages paid by qualifying U.S. automobile or automotive-component producers. To qualify, a manufacturer must meet domestic assembly and domestic engine, transmission, or advanced battery-cell production thresholds of at least 75 percent, avoid moving U.S. production abroad, provide platinum-level health coverage and strong pensions or 10 percent 401(k) contributions, cover retired applicable workers, provide at least $2,000 in profit-sharing per worker for each $1 billion in nonrecurring dividends or stock redemptions, and remain neutral in labor organizing. Eligible wages must be at least the 75th percentile for the occupation and are capped at $150,000 per worker. The bill then voids EPA's model year 2027 light- and medium-duty multipollutant rule, EPA's Phase 3 heavy-duty greenhouse gas rule, and NHTSA's 2027-and-later CAFE and heavy-duty pickup/van rules; revokes all California section 209(b) waivers including zero-emission vehicle mandates; repeals Clean Air Act section 177; requires EPA and DOT within 180 days to set new 2027-2035 standards based on feasibility, affordability, industry capacity, historical data, and job quality; bars standards that directly or indirectly require electric-vehicle production or sale; creates deemed compliance between CAFE and fleet-average greenhouse gas standards; and requires new heavy-duty greenhouse gas standards beginning no earlier than model year 2027 after stakeholder consultation.

Who Benefits and How

Union-neutral U.S. auto manufacturers benefit because qualifying wages generate a 200 percent deduction if domestic production, benefits, and profit-sharing conditions are met. Automobile manufacturing workers benefit because the deduction is tied to 75th-percentile wages, platinum-level health coverage, strong retirement benefits, and profit-sharing. Automakers selling internal-combustion vehicles benefit because the bill voids several EPA and NHTSA rules and bars standards that require electric-vehicle production or sale. States without California-style waiver programs benefit if a single federal vehicle-emissions framework replaces California-led standards adopted through section 177.

Who Bears the Burden and How

The Environmental Protection Agency must replace repealed light-, medium-, and heavy-duty emissions standards and stop granting California vehicle-emissions waivers. The National Highway Traffic Safety Administration must replace CAFE standards and coordinate feasibility-based standards with EPA. California air regulators lose existing and future Clean Air Act waiver authority for vehicle-emissions standards that differ from federal standards. Electric-vehicle manufacturers may lose regulatory demand support from zero-emission mandates and stricter federal fleet standards.

Key Provisions

• Creates a 200 percent deduction for eligible wages paid by qualifying U.S. automobile manufacturers.
• Requires domestic production, platinum-level health coverage, strong pension or 401(k) contributions, profit-sharing, and labor-neutrality conditions for the deduction.
• Repeals EPA multipollutant, EPA heavy-duty greenhouse gas, and NHTSA CAFE/fuel-efficiency final rules.
• Revokes California Clean Air Act section 209(b) waivers and repeals section 177 adoption authority.
• Directs EPA and DOT to set new 2027-2035 standards based on practicability, affordability, industry capacity, historical data, and job impacts.