Transportation Freedom Act
Summary
What This Bill Does
The bill adds new Section 199B to Internal Revenue Code allowing a 200% tax deduction for wages paid by qualifying automobile manufacturers with at least 75% U.S. final assembly and 75% domestic component manufacturing, defines statutory text of Section 199B defining qualifying taxpayer requirements including 75% U.S. final assembly and domestic component manufacturing thresholds for the 200% wage deduction, and repeals the EPA Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles (April 2024 rule), rendering it without force or effect. It relies on exemptions, compliance mandates, tax deductions, and definition changes. The main policy areas are Trade, Environment, Energy, and Transportation.
Who Benefits and How
Automobile manufacturers could face lower compliance burdens, Heavy-duty truck manufacturers could face lower compliance burdens, and Oil and gas industry could gain revenue opportunities.
Who Bears the Burden and How
Federal tax revenue could lose revenue opportunities, States that adopted California standards would be affected, and Electric vehicle manufacturers could lose revenue opportunities.
Key Provisions
- Adds new Section 199B to Internal Revenue Code allowing a 200% tax deduction for wages paid by qualifying automobile manufacturers with at least 75% U.S. final assembly and 75% domestic component manufacturing.
- Defines statutory text of Section 199B defining qualifying taxpayer requirements including 75% U.S. final assembly and domestic component manufacturing thresholds for the 200% wage deduction.
- Repeals the EPA Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles (April 2024 rule), rendering it without force or effect.
- Repeals the EPA Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles Phase 3 rule (April 2024), which set stringent emissions standards for trucks and buses.
- Repeals NHTSA Corporate Average Fuel Economy Standards for passenger cars, light trucks (MY 2027+) and heavy-duty pickup trucks and vans (MY 2030+), including the July 2024 correction rule.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill adds new Section 199B to Internal Revenue Code allowing a 200% tax deduction for wages paid by qualifying automobile manufacturers with at least 75% U.S. final assembly and 75% domestic component manufacturing, defines statutory text of Section 199B defining qualifying taxpayer requirements including 75% U.S. final assembly and domestic component manufacturing thresholds for the 200% wage deduction, and repeals the EPA Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles (April 2024 rule), rendering it without force or effect.
Key Policy Areas
Trade, Environment, Energy, Transportation
Primary Purpose
The bill adds new Section 199B to Internal Revenue Code allowing a 200% tax deduction for wages paid by qualifying automobile manufacturers with at least 75% U.S. final assembly and 75% domestic component manufacturing, defines statutory text of Section 199B defining qualifying taxpayer requirements including 75% U.S. final assembly and domestic component manufacturing thresholds for the 200% wage deduction, and repeals the EPA Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles (April 2024 rule), rendering it without force or effect.
Policy Domains
Title I - Enhanced Tax Deduction for Auto Manufacturing
Identified Gains
- Automobile manufacturers
- Heavy-duty truck manufacturers
- Oil and gas industry
- Domestic automobile manufacturers meeting production thresholds
- Domestic automobile manufacturers
Identified Costs
- Federal tax revenue
- States that adopted California standards
- Electric vehicle manufacturers
- Foreign automakers with limited U.S. production
- Environmental Protection Agency
Sponsors
Legislative Progress
In CommitteeMr. Moreno (for himself, Mr. Sheehy, Mr. Banks, and Mr. …
Read twice and referred to the Committee on Finance.
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Automakers (compliance simplification), Automobile manufacturers, Battery cell manufacturers in U.S.
Positive-direction: Automakers (compliance simplification), Automobile manufacturers, Battery cell manufacturers in U.S., Diesel engine manufacturers, Domestic automobile manufacturers, Domestic automobile manufacturers meeting production thresholds, Heavy-duty truck manufacturers, Pickup truck and SUV manufacturers, Traditional ICE vehicle manufacturers, U.S. auto manufacturing workers
Negative-direction: Electric vehicle manufacturers, Foreign automakers with limited U.S. production
Department of Transportation, Environmental Protection Agency, Federal agencies implementing new standards
Positive-direction: Federal agencies implementing new standards
Negative-direction: Department of Transportation, Environmental Protection Agency, Federal tax revenue
Trucking and freight companies, Trucking and freight industry
California Air Resources Board, States that adopted California standards
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_administrator"
- → Administrator of the Environmental Protection Agency
- "the_administrator"
- → Administrator of the Environmental Protection Agency
- "the_secretary"
- → Secretary of Transportation
- "the_administrator"
- → Administrator of the Environmental Protection Agency
Key Definitions
Terms defined in this bill
Entity engaged in U.S. automobile production with 75%+ final assembly in the U.S. and 75%+ domestic component manufacturing
Corporate Average Fuel Economy standards required under section 32902(a) of title 49, United States Code
Emissions of carbon dioxide, methane, nitrous oxide, and other gases that contribute to climate change
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology