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Referenced Laws
chapter 1
42 U.S.C. 18022(d)(1)(D)
29 U.S.C. 151 et seq.
Section 56A(c)
42 U.S.C. 7543(b)
42 U.S.C. 7507
42 U.S.C. 7589(e)(3)
42 U.S.C. 7550
42 U.S.C. 7521
42 U.S.C. 7545(o)
42 U.S.C. 7525
Section 1
1. Short title; table of contents This Act may be cited as the Transportation Freedom Act. The table of contents of this Act is as follows:
Section 2
101. Enhanced deduction for wages paid to automobile manufacturing workers Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: In the case of any taxable year for which an election is made under subsection (g) by a qualifying taxpayer, there shall be allowed a deduction equal to 200 percent of an amount equal to the total amount of eligible wages paid or incurred by such taxpayer during such taxable year. For purposes of this section, the term qualifying taxpayer means an entity which, with respect to any taxable year— is engaged in the production of automobiles or automotive components in the United States, with respect to any automobiles, light-duty trucks, and heavy-duty trucks sold by the entity for use in the United States during the preceding taxable year, the final assembly (as defined in section 30D(d)(5)) of not less than 75 percent of such vehicles occurred in the United States, with respect to the manufacturing of finished engines, transmissions, or advanced battery cells (including manufacturing pursuant to joint ventures or other collaborative manufacturing agreements) during the preceding taxable year, not less than 75 percent of such finished engines, transmissions, or advanced battery cells which were incorporated into new automobiles, light-duty trucks, or heavy-duty trucks for sale by the entity were produced in the United States, during the preceding taxable year, did not transfer production outside of the United States of any automobile or automobile component manufactured in the United States, during the preceding taxable year, with respect to all applicable individuals, offered— coverage for the applicable individual under a group health plan in the platinum level of coverage (as described in section 1302(d)(1)(D) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(d)(1)(D))) or a higher level of coverage, and participation in a defined benefit plan or defined contribution plan that meets the applicable requirement of subsection (e), during the preceding taxable year, with respect to all retired individuals who, prior to retirement, were applicable individuals, offered coverage for the retired individual under a group health plan in the platinum level of coverage (as described in section 1302(d)(1)(D) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(d)(1)(D))) or a higher level of coverage, with respect to every $1,000,000,000 distributed as non-recurring dividends, or in stock which was redeemed (within the meaning of section 317(b)), by such entity during such taxable year, provided not less than $2,000 to each applicable individual through a profit-sharing plan, with such amount to be in addition to any prior commitment made by the entity pursuant to an existing profit-sharing plan, as determined as of the date of such distribution or redemption, and maintained a neutral position during the preceding taxable year— in any labor organization organizing effort, and with respect to the exercise of employees and labor organizations of their rights under the National Labor Relations Act (29 U.S.C. 151 et seq.). For purposes of this section, the term eligible wages means any wages paid or incurred by a qualifying taxpayer during the taxable year to any applicable individual, provided that the wages paid to such individual during such taxable year are not less than the 75th percentile of wages paid for the occupation of the individual (as designated in accordance with the Standard Occupational Classification System) with respect to the applicable 4-digit industry group code of the North American Industry Classification System. The amount of wages which may be taken into account under subsection (a)(1) with respect to any applicable individual shall not exceed $150,000 per taxable year. For purposes of this section, the term applicable individual means an individual directly engaged in the manufacturing of automobiles or automotive components in the United States. The requirement described in this subsection with respect to a defined benefit plan is that such plan is projected to provide an applicable individual with not less than 50 percent wage replacement upon retirement, for the entire length of the individual's retirement, provided the applicable individual is employed by the qualifying taxpayer and a participant in the plan for a minimum of 30 years. The requirement described in this subsection with respect to a defined contribution plan is that such plan is a qualified cash or deferred arrangement as defined in section 401(k) under the terms of which the employer contribution is not less than 10 percent of the participating employee’s wages during the preceding tax year. No deduction shall be allowed under section 162(a) with respect to any wages or contributions taken into account in determining the deduction under subsection (a). Subsection (a) shall apply only with respect to such portion of the eligible wages paid or incurred by the qualifying taxpayer, or contributions made by such taxpayer, during the taxable year as are elected by such taxpayer. No deduction shall be allowed under subsection (a) unless the taxpayer submits to the Secretary (at such times and in such manner as the Secretary provides) a certification that the applicable requirements under this section have been satisfied. Section 56A(c) of the Internal Revenue Code of 1986 is amended— by redesignating paragraph (15) as paragraph (16), and by inserting after paragraph (14) the following new paragraph: Adjusted financial statement income shall be— reduced by the deduction for eligible wages allowed under section 199B to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and appropriately adjusted— to disregard any wages taken into account on the taxpayer’s applicable financial statement that were also taken into account in determining the amount of the deduction allowed under section 199B, and to take into account any other item specified by the Secretary in order to provide that such wages are accounted for in the same manner as accounted for under this chapter. The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item: The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. 199B.Wages paid to automobile manufacturing workers(a)In generalIn the case of any taxable year for which an election is made under subsection (g) by a qualifying taxpayer, there shall be allowed a deduction equal to 200 percent of an amount equal to the total amount of eligible wages paid or incurred by such taxpayer during such taxable year.(b)Qualifying taxpayerFor purposes of this section, the term qualifying taxpayer means an entity which, with respect to any taxable year—(1)is engaged in the production of automobiles or automotive components in the United States,(2)with respect to any automobiles, light-duty trucks, and heavy-duty trucks sold by the entity for use in the United States during the preceding taxable year, the final assembly (as defined in section 30D(d)(5)) of not less than 75 percent of such vehicles occurred in the United States,(3)with respect to the manufacturing of finished engines, transmissions, or advanced battery cells (including manufacturing pursuant to joint ventures or other collaborative manufacturing agreements) during the preceding taxable year, not less than 75 percent of such finished engines, transmissions, or advanced battery cells which were incorporated into new automobiles, light-duty trucks, or heavy-duty trucks for sale by the entity were produced in the United States,(4)during the preceding taxable year, did not transfer production outside of the United States of any automobile or automobile component manufactured in the United States,(5)during the preceding taxable year, with respect to all applicable individuals, offered—(A)coverage for the applicable individual under a group health plan in the platinum level of coverage (as described in section 1302(d)(1)(D) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(d)(1)(D))) or a higher level of coverage, and(B)participation in a defined benefit plan or defined contribution plan that meets the applicable requirement of subsection (e),(6)during the preceding taxable year, with respect to all retired individuals who, prior to retirement, were applicable individuals, offered coverage for the retired individual under a group health plan in the platinum level of coverage (as described in section 1302(d)(1)(D) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(d)(1)(D))) or a higher level of coverage, (7)with respect to every $1,000,000,000 distributed as non-recurring dividends, or in stock which was redeemed (within the meaning of section 317(b)), by such entity during such taxable year, provided not less than $2,000 to each applicable individual through a profit-sharing plan, with such amount to be in addition to any prior commitment made by the entity pursuant to an existing profit-sharing plan, as determined as of the date of such distribution or redemption, and(8)maintained a neutral position during the preceding taxable year—(A)in any labor organization organizing effort, and(B)with respect to the exercise of employees and labor organizations of their rights under the National Labor Relations Act (29 U.S.C. 151 et seq.).(c)Eligible wages(1)In generalFor purposes of this section, the term eligible wages means any wages paid or incurred by a qualifying taxpayer during the taxable year to any applicable individual, provided that the wages paid to such individual during such taxable year are not less than the 75th percentile of wages paid for the occupation of the individual (as designated in accordance with the Standard Occupational Classification System) with respect to the applicable 4-digit industry group code of the North American Industry Classification System.(2)LimitationThe amount of wages which may be taken into account under subsection (a)(1) with respect to any applicable individual shall not exceed $150,000 per taxable year.(d)Applicable individualFor purposes of this section, the term applicable individual means an individual directly engaged in the manufacturing of automobiles or automotive components in the United States.(e)Pension requirements(1)Defined benefit pension plansThe requirement described in this subsection with respect to a defined benefit plan is that such plan is projected to provide an applicable individual with not less than 50 percent wage replacement upon retirement, for the entire length of the individual's retirement, provided the applicable individual is employed by the qualifying taxpayer and a participant in the plan for a minimum of 30 years.(2)Defined contribution pension plansThe requirement described in this subsection with respect to a defined contribution plan is that such plan is a qualified cash or deferred arrangement as defined in section 401(k) under the terms of which the employer contribution is not less than 10 percent of the participating employee’s wages during the preceding tax year.(f)Denial of deduction for trade or business expensesNo deduction shall be allowed under section 162(a) with respect to any wages or contributions taken into account in determining the deduction under subsection (a).(g)ElectionSubsection (a) shall apply only with respect to such portion of the eligible wages paid or incurred by the qualifying taxpayer, or contributions made by such taxpayer, during the taxable year as are elected by such taxpayer.(h)CertificationNo deduction shall be allowed under subsection (a) unless the taxpayer submits to the Secretary (at such times and in such manner as the Secretary provides) a certification that the applicable requirements under this section have been satisfied.. (15)Wages paid to automobile manufacturing workersAdjusted financial statement income shall be—(A)reduced by the deduction for eligible wages allowed under section 199B to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and(B)appropriately adjusted—(i)to disregard any wages taken into account on the taxpayer’s applicable financial statement that were also taken into account in determining the amount of the deduction allowed under section 199B, and(ii)to take into account any other item specified by the Secretary in order to provide that such wages are accounted for in the same manner as accounted for under this chapter.. Sec. 199B. Wages paid to automobile manufacturing workers..
Section 3
199B. Wages paid to automobile manufacturing workers In the case of any taxable year for which an election is made under subsection (g) by a qualifying taxpayer, there shall be allowed a deduction equal to 200 percent of an amount equal to the total amount of eligible wages paid or incurred by such taxpayer during such taxable year. For purposes of this section, the term qualifying taxpayer means an entity which, with respect to any taxable year— is engaged in the production of automobiles or automotive components in the United States, with respect to any automobiles, light-duty trucks, and heavy-duty trucks sold by the entity for use in the United States during the preceding taxable year, the final assembly (as defined in section 30D(d)(5)) of not less than 75 percent of such vehicles occurred in the United States, with respect to the manufacturing of finished engines, transmissions, or advanced battery cells (including manufacturing pursuant to joint ventures or other collaborative manufacturing agreements) during the preceding taxable year, not less than 75 percent of such finished engines, transmissions, or advanced battery cells which were incorporated into new automobiles, light-duty trucks, or heavy-duty trucks for sale by the entity were produced in the United States, during the preceding taxable year, did not transfer production outside of the United States of any automobile or automobile component manufactured in the United States, during the preceding taxable year, with respect to all applicable individuals, offered— coverage for the applicable individual under a group health plan in the platinum level of coverage (as described in section 1302(d)(1)(D) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(d)(1)(D))) or a higher level of coverage, and participation in a defined benefit plan or defined contribution plan that meets the applicable requirement of subsection (e), during the preceding taxable year, with respect to all retired individuals who, prior to retirement, were applicable individuals, offered coverage for the retired individual under a group health plan in the platinum level of coverage (as described in section 1302(d)(1)(D) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(d)(1)(D))) or a higher level of coverage, with respect to every $1,000,000,000 distributed as non-recurring dividends, or in stock which was redeemed (within the meaning of section 317(b)), by such entity during such taxable year, provided not less than $2,000 to each applicable individual through a profit-sharing plan, with such amount to be in addition to any prior commitment made by the entity pursuant to an existing profit-sharing plan, as determined as of the date of such distribution or redemption, and maintained a neutral position during the preceding taxable year— in any labor organization organizing effort, and with respect to the exercise of employees and labor organizations of their rights under the National Labor Relations Act (29 U.S.C. 151 et seq.). For purposes of this section, the term eligible wages means any wages paid or incurred by a qualifying taxpayer during the taxable year to any applicable individual, provided that the wages paid to such individual during such taxable year are not less than the 75th percentile of wages paid for the occupation of the individual (as designated in accordance with the Standard Occupational Classification System) with respect to the applicable 4-digit industry group code of the North American Industry Classification System. The amount of wages which may be taken into account under subsection (a)(1) with respect to any applicable individual shall not exceed $150,000 per taxable year. For purposes of this section, the term applicable individual means an individual directly engaged in the manufacturing of automobiles or automotive components in the United States. The requirement described in this subsection with respect to a defined benefit plan is that such plan is projected to provide an applicable individual with not less than 50 percent wage replacement upon retirement, for the entire length of the individual's retirement, provided the applicable individual is employed by the qualifying taxpayer and a participant in the plan for a minimum of 30 years. The requirement described in this subsection with respect to a defined contribution plan is that such plan is a qualified cash or deferred arrangement as defined in section 401(k) under the terms of which the employer contribution is not less than 10 percent of the participating employee’s wages during the preceding tax year. No deduction shall be allowed under section 162(a) with respect to any wages or contributions taken into account in determining the deduction under subsection (a). Subsection (a) shall apply only with respect to such portion of the eligible wages paid or incurred by the qualifying taxpayer, or contributions made by such taxpayer, during the taxable year as are elected by such taxpayer. No deduction shall be allowed under subsection (a) unless the taxpayer submits to the Secretary (at such times and in such manner as the Secretary provides) a certification that the applicable requirements under this section have been satisfied.
Section 4
201. Repeal of multipollutant emissions standards for light-duty and medium-duty vehicles The final rule of the Administrator of the Environmental Protection Agency entitled Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles (89 Fed. Reg. 27842 (April 18, 2024)) shall have no force or effect.
Section 5
202. Repeal of phase 3 heavy-duty vehicle greenhouse gas emissions standards The final rule of the Administrator of the Environmental Protection Agency entitled Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles—Phase 3 (89 Fed. Reg. 29440 (April 22, 2024)) shall have no force or effect.
Section 6
203. Repeal of CAFE standards rules The final rules of the National Highway Traffic Safety Administration entitled Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030 and Beyond (89 Fed. Reg. 52540 (June 24, 2024)) and Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027–2032 and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030–2035; Correction (89 Fed. Reg. 60832 (July 29, 2024)) shall have no force or effect.
Section 7
301. Elimination of vehicle emissions waivers Section 209(b) of the Clean Air Act (42 U.S.C. 7543(b)) is amended by adding at the end the following: Notwithstanding any other provision of this section, beginning on the date of enactment of this paragraph, the Administrator shall not grant a waiver under paragraph (1) to enforce a standard for the control of emissions from new motor vehicles or new motor vehicle engines that differs from a standard established under this Act by the Administrator. Each waiver issued under section 209(b) of the Clean Air Act (42 U.S.C. 7543(b)) before the date of enactment of this Act, including any waiver issued under that section to the State of California for zero-emission vehicle mandates, is revoked. Section 177 of the Clean Air Act (42 U.S.C. 7507) is repealed. Section 249(e)(3) of the Clean Air Act (42 U.S.C. 7589(e)(3)) is amended by striking the second sentence. (4)No further waiversNotwithstanding any other provision of this section, beginning on the date of enactment of this paragraph, the Administrator shall not grant a waiver under paragraph (1) to enforce a standard for the control of emissions from new motor vehicles or new motor vehicle engines that differs from a standard established under this Act by the Administrator..
Section 8
401. Definitions In this subtitle: The term Administrator means the Administrator of the Environmental Protection Agency. The term CAFE standards means the Corporate Average Fuel Economy standards required under section 32902(a) of title 49, United States Code. The term greenhouse gas emissions means emissions of carbon dioxide, methane, nitrous oxide, and other gases that contribute to climate change. The term Secretary means the Secretary of Transportation.
Section 9
402. Establishment of CAFE standards and greenhouse gas emissions standards Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Energy and the Administrator, shall establish CAFE standards for passenger automobiles (as defined in section 32901(a) of title 49, United States Code) and light-duty trucks (as defined in section 86.1803–01 of title 40, Code of Federal Regulations (or a successor regulation)) for model years 2027 through 2035 in accordance with this section. Not later than 180 days after the date of enactment of this Act, and notwithstanding any other provision of law, the Administrator, in coordination with the Secretary, shall establish standards for greenhouse gas emissions from new motor vehicles and new motor vehicle engines (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550)) under section 202 of the Clean Air Act (42 U.S.C. 7521) for model years 2027 through 2035 in accordance with this section. The CAFE standards and greenhouse gas emissions standards established under paragraphs (1) and (2), respectively, of subsection (a) shall— be based on economic practicability and reflect achievable technological advancements based on market readiness and affordability; and be based on evidence from industry capacity, historical data, and independent expert assessments to determine feasibility and economic impact, including on motor vehicle manufacturing job quality and stability. Notwithstanding any other provision of law, in establishing the CAFE standards under subsection (a)(1), the Secretary may not consider the fuel economy of dedicated automobiles in any baseline fleet or scenario. Notwithstanding any other provision of law, the greenhouse gas emissions standards established under subsection (a)(2)— shall be technologically feasible and economically practicable for vehicles of any weight class or category when operated on reformulated gasoline that complies with section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)); and shall not require, directly or indirectly, the production or sale of vehicles operated on electricity. In establishing the CAFE standards and greenhouse gas emissions standards required under paragraphs (1) and (2), respectively, of subsection (a), the Secretary and the Administrator shall, after providing adequate notice, consult with manufacturers (as defined in section 32901(a) of title 49, United States Code), energy producers, consumer groups, and other relevant stakeholders. Any feedback received from an entity described in paragraph (1) during a consultation described in that paragraph shall be considered by the Secretary and the Administrator to ensure the CAFE standards and greenhouse gas emissions standards required under paragraphs (1) and (2), respectively, of subsection (a) are technologically and economically achievable. The Secretary and the Administrator shall each submit to Congress a biennial report detailing progress toward achieving the applicable standards established under subsection (a) for 2035. Based on findings in a report submitted under paragraph (1), including market conditions, technological advancements, and economic impact assessments, the Secretary and the Administrator, as applicable, may adjust the CAFE standards and greenhouse gas emissions standards required under paragraphs (1) and (2), respectively, of subsection (a). If the Secretary and the Administrator do not establish the CAFE standards and greenhouse gas emissions standards required under paragraphs (1) and (2), respectively, of subsection (a) by the deadlines described in those paragraphs, the CAFE standards and greenhouse gas emissions standards for model year 2025 shall continue in effect through model year 2035.
Section 10
403. Compliance with fleet average carbon dioxide emissions standards Section 206 of the Clean Air Act (42 U.S.C. 7525) is amended by adding at the end the following: If a manufacturer complies with the applicable Corporate Average Fuel Economy standards required under section 32902(a) of title 49, United States Code, in a model year with respect to the passenger automobiles, non-passenger automobiles, and work trucks (as those terms are defined in section 32901(a) of that title) manufactured by the manufacturer, including through payment of civil penalties pursuant to section 32919 of that title or through the purchase of credits available to the manufacturer under section 32903 of that title, the manufacturer shall be considered to be in compliance with fleet-average greenhouse gas emissions standards under section 202, including fleet-average carbon dioxide emissions standards, that are applicable to those vehicles in that model year. Section 32902 of title 49, United States Code, is amended by adding at the end the following: If a manufacturer complies with the fleet-average greenhouse gas emissions standards under section 202 of the Clean Air Act (42 U.S.C. 7521), including fleet-average carbon dioxide emissions standards, for light-duty vehicles and medium-duty vehicles (as those terms are defined in section 86.1803–01 of title 40, Code of Federal Regulations (or a successor regulation)) for a model year, including through purchased credits, the manufacturer shall be considered to be in compliance with the average fuel economy standard prescribed under this section applicable to those vehicles in that model year. (i)Deemed complianceIf a manufacturer complies with the applicable Corporate Average Fuel Economy standards required under section 32902(a) of title 49, United States Code, in a model year with respect to the passenger automobiles, non-passenger automobiles, and work trucks (as those terms are defined in section 32901(a) of that title) manufactured by the manufacturer, including through payment of civil penalties pursuant to section 32919 of that title or through the purchase of credits available to the manufacturer under section 32903 of that title, the manufacturer shall be considered to be in compliance with fleet-average greenhouse gas emissions standards under section 202, including fleet-average carbon dioxide emissions standards, that are applicable to those vehicles in that model year.. (l)Deemed complianceIf a manufacturer complies with the fleet-average greenhouse gas emissions standards under section 202 of the Clean Air Act (42 U.S.C. 7521), including fleet-average carbon dioxide emissions standards, for light-duty vehicles and medium-duty vehicles (as those terms are defined in section 86.1803–01 of title 40, Code of Federal Regulations (or a successor regulation)) for a model year, including through purchased credits, the manufacturer shall be considered to be in compliance with the average fuel economy standard prescribed under this section applicable to those vehicles in that model year..
Section 11
404. Authorization of appropriations There are authorized to be appropriated such sums as are necessary to carry out this subtitle and the amendments made by this subtitle.
Section 12
411. Establishment of heavy-duty vehicle greenhouse gas emissions standards In this section: The term Administrator means the Administrator of the Environmental Protection Agency. The term greenhouse gas emissions means emissions of carbon dioxide, methane, nitrous oxide, and other gases that contribute to climate change. Not later than 180 days after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Transportation, shall publish in the Federal Register new greenhouse gas emissions standards for heavy-duty trucks beginning no earlier than model year 2027. During the period beginning on the date of enactment of this Act and ending on the date on which the new greenhouse gas emissions standards established under paragraph (1) is finalized, the greenhouse gas emissions standards for heavy-duty trucks shall be the standards for model year 2024 as described in the final rule of the Administrator and the Administrator of the National Highway Traffic Safety Administration entitled Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles—Phase 2 (81 Fed. Reg. 73478 (October 25, 2016)). The greenhouse gas emissions standards established under subsection (b)(1) shall— reflect achievable technological advancements based on market readiness and affordability; and be based on evidence from industry capacity, historical market adoption data, technological advancements, and independent expert assessments to determine feasibility and economic impact, including on motor vehicle manufacturing job quality and stability. In establishing the greenhouse gas emissions standards under subsection (b)(1), the Administrator shall, after providing adequate notice, consult with manufacturers, automotive dealers, end users, energy producers, consumer groups, and other relevant stakeholders.