II
119THCONGRESS
1
STSESSION S. 711
To amend the Internal Revenue Code of 1986 to establish an enhanced
deduction for wages paid to automobile manufacturing workers, and
for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY25, 2025
Mr. M
ORENO(for himself, Mr. SHEEHY, Mr. BANKS, and Mr. JUSTICE) intro-
duced the following bill; which was read twice and referred to the Com-
mittee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to establish
an enhanced deduction for wages paid to automobile
manufacturing workers, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) S
HORTTITLE.—This Act may be cited as the 4
‘‘Transportation Freedom Act’’. 5
(b) T
ABLE OFCONTENTS.—The table of contents of 6
this Act is as follows: 7
Sec. 1. Short title; table of contents.
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TITLE I—SUPPORT FOR AMERICAN AUTOMOBILE
MANUFACTURING
Sec. 101. Enhanced deduction for wages paid to automobile manufacturing
workers.
TITLE II—MULTIPOLLUTANT EMISSIONS STANDARDS
Sec. 201. Repeal of multipollutant emissions standards for light-duty and me-
dium-duty vehicles.
Sec. 202. Repeal of phase 3 heavy-duty vehicle greenhouse gas emissions stand-
ards.
Sec. 203. Repeal of CAFE standards rules.
TITLE III—EMISSIONS WAIVERS
Sec. 301. Elimination of vehicle emissions waivers.
TITLE IV—FEDERAL GREENHOUSE GAS EMISSIONS STANDARDS
AND CAFE STANDARDS
Subtitle A—Establishment of New Passenger Automobile Standards
Sec. 401. Definitions.
Sec. 402. Establishment of CAFE standards and greenhouse gas emissions
standards.
Sec. 403. Compliance with fleet average carbon dioxide emissions standards.
Sec. 404. Authorization of appropriations.
Subtitle B—Establishment of New Heavy-Duty Vehicle Standards
Sec. 411. Establishment of heavy-duty vehicle greenhouse gas emissions stand-
ards.
TITLE I—SUPPORT FOR AMER-1
ICAN AUTOMOBILE MANU-2
FACTURING 3
SEC. 101. ENHANCED DEDUCTION FOR WAGES PAID TO 4
AUTOMOBILE MANUFACTURING WORKERS. 5
(a) I
NGENERAL.—Part VI of subchapter B of chap-6
ter 1 of the Internal Revenue Code of 1986 is amended 7
by adding at the end the following new section: 8
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‘‘SEC. 199B. WAGES PAID TO AUTOMOBILE MANUFAC-1
TURING WORKERS. 2
‘‘(a) I
NGENERAL.—In the case of any taxable year 3
for which an election is made under subsection (g) by a 4
qualifying taxpayer, there shall be allowed a deduction 5
equal to 200 percent of an amount equal to the total 6
amount of eligible wages paid or incurred by such taxpayer 7
during such taxable year. 8
‘‘(b) Q
UALIFYINGTAXPAYER.—For purposes of this 9
section, the term ‘qualifying taxpayer’ means an entity 10
which, with respect to any taxable year— 11
‘‘(1) is engaged in the production of auto-12
mobiles or automotive components in the United 13
States, 14
‘‘(2) with respect to any automobiles, light-duty 15
trucks, and heavy-duty trucks sold by the entity for 16
use in the United States during the preceding tax-17
able year, the final assembly (as defined in section 18
30D(d)(5)) of not less than 75 percent of such vehi-19
cles occurred in the United States, 20
‘‘(3) with respect to the manufacturing of fin-21
ished engines, transmissions, or advanced battery 22
cells (including manufacturing pursuant to joint ven-23
tures or other collaborative manufacturing agree-24
ments) during the preceding taxable year, not less 25
than 75 percent of such finished engines, trans-26
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missions, or advanced battery cells which were incor-1
porated into new automobiles, light-duty trucks, or 2
heavy-duty trucks for sale by the entity were pro-3
duced in the United States, 4
‘‘(4) during the preceding taxable year, did not 5
transfer production outside of the United States of 6
any automobile or automobile component manufac-7
tured in the United States, 8
‘‘(5) during the preceding taxable year, with re-9
spect to all applicable individuals, offered— 10
‘‘(A) coverage for the applicable individual 11
under a group health plan in the platinum level 12
of coverage (as described in section 13
1302(d)(1)(D) of the Patient Protection and 14
Affordable Care Act (42 U.S.C. 15
18022(d)(1)(D))) or a higher level of coverage, 16
and 17
‘‘(B) participation in a defined benefit plan 18
or defined contribution plan that meets the ap-19
plicable requirement of subsection (e), 20
‘‘(6) during the preceding taxable year, with re-21
spect to all retired individuals who, prior to retire-22
ment, were applicable individuals, offered coverage 23
for the retired individual under a group health plan 24
in the platinum level of coverage (as described in 25
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section 1302(d)(1)(D) of the Patient Protection and 1
Affordable Care Act (42 U.S.C. 18022(d)(1)(D))) or 2
a higher level of coverage, 3
‘‘(7) with respect to every $1,000,000,000 dis-4
tributed as non-recurring dividends, or in stock 5
which was redeemed (within the meaning of section 6
317(b)), by such entity during such taxable year, 7
provided not less than $2,000 to each applicable in-8
dividual through a profit-sharing plan, with such 9
amount to be in addition to any prior commitment 10
made by the entity pursuant to an existing profit- 11
sharing plan, as determined as of the date of such 12
distribution or redemption, and 13
‘‘(8) maintained a neutral position during the 14
preceding taxable year— 15
‘‘(A) in any labor organization organizing 16
effort, and 17
‘‘(B) with respect to the exercise of em-18
ployees and labor organizations of their rights 19
under the National Labor Relations Act (29 20
U.S.C. 151 et seq.). 21
‘‘(c) E
LIGIBLEWAGES.— 22
‘‘(1) I
N GENERAL.—For purposes of this sec-23
tion, the term ‘eligible wages’ means any wages paid 24
or incurred by a qualifying taxpayer during the tax-25
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able year to any applicable individual, provided that 1
the wages paid to such individual during such tax-2
able year are not less than the 75th percentile of 3
wages paid for the occupation of the individual (as 4
designated in accordance with the Standard Occupa-5
tional Classification System) with respect to the ap-6
plicable 4-digit industry group code of the North 7
American Industry Classification System. 8
‘‘(2) L
IMITATION.—The amount of wages which 9
may be taken into account under subsection (a)(1) 10
with respect to any applicable individual shall not 11
exceed $150,000 per taxable year. 12
‘‘(d) A
PPLICABLEINDIVIDUAL.—For purposes of this 13
section, the term ‘applicable individual’ means an indi-14
vidual directly engaged in the manufacturing of auto-15
mobiles or automotive components in the United States. 16
‘‘(e) P
ENSIONREQUIREMENTS.— 17
‘‘(1) D
EFINED BENEFIT PENSION PLANS .—The 18
requirement described in this subsection with respect 19
to a defined benefit plan is that such plan is pro-20
jected to provide an applicable individual with not 21
less than 50 percent wage replacement upon retire-22
ment, for the entire length of the individual’s retire-23
ment, provided the applicable individual is employed 24
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by the qualifying taxpayer and a participant in the 1
plan for a minimum of 30 years. 2
‘‘(2) D
EFINED CONTRIBUTION PENSION 3
PLANS.—The requirement described in this sub-4
section with respect to a defined contribution plan is 5
that such plan is a qualified cash or deferred ar-6
rangement as defined in section 401(k) under the 7
terms of which the employer contribution is not less 8
than 10 percent of the participating employee’s 9
wages during the preceding tax year. 10
‘‘(f) D
ENIAL OFDEDUCTION FORTRADE ORBUSI-11
NESSEXPENSES.—No deduction shall be allowed under 12
section 162(a) with respect to any wages or contributions 13
taken into account in determining the deduction under 14
subsection (a). 15
‘‘(g) E
LECTION.—Subsection (a) shall apply only 16
with respect to such portion of the eligible wages paid or 17
incurred by the qualifying taxpayer, or contributions made 18
by such taxpayer, during the taxable year as are elected 19
by such taxpayer. 20
‘‘(h) C
ERTIFICATION.—No deduction shall be allowed 21
under subsection (a) unless the taxpayer submits to the 22
Secretary (at such times and in such manner as the Sec-23
retary provides) a certification that the applicable require-24
ments under this section have been satisfied.’’. 25
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(b) ADJUSTEDFINANCIALSTATEMENTINCOME.— 1
Section 56A(c) of the Internal Revenue Code of 1986 is 2
amended— 3
(1) by redesignating paragraph (15) as para-4
graph (16), and 5
(2) by inserting after paragraph (14) the fol-6
lowing new paragraph: 7
‘‘(15) W
AGES PAID TO AUTOMOBILE MANUFAC -8
TURING WORKERS.—Adjusted financial statement in-9
come shall be— 10
‘‘(A) reduced by the deduction for eligible 11
wages allowed under section 199B to the extent 12
of the amount allowed as deductions in com-13
puting taxable income for the taxable year, and 14
‘‘(B) appropriately adjusted— 15
‘‘(i) to disregard any wages taken into 16
account on the taxpayer’s applicable finan-17
cial statement that were also taken into ac-18
count in determining the amount of the de-19
duction allowed under section 199B, and 20
‘‘(ii) to take into account any other 21
item specified by the Secretary in order to 22
provide that such wages are accounted for 23
in the same manner as accounted for 24
under this chapter.’’. 25
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(c) CLERICALAMENDMENT.—The table of sections 1
for part VI of subchapter B of chapter 1 of such Code 2
is amended by adding at the end the following new item: 3
‘‘Sec. 199B. Wages paid to automobile manufacturing workers.’’.
(d) EFFECTIVEDATE.—The amendments made by 4
this section shall apply to taxable years beginning after 5
the date of enactment of this Act. 6
TITLE II—MULTIPOLLUTANT 7
EMISSIONS STANDARDS 8
SEC. 201. REPEAL OF MULTIPOLLUTANT EMISSIONS 9
STANDARDS FOR LIGHT-DUTY AND MEDIUM- 10
DUTY VEHICLES. 11
The final rule of the Administrator of the Environ-12
mental Protection Agency entitled ‘‘Multi-Pollutant Emis-13
sions Standards for Model Years 2027 and Later Light- 14
Duty and Medium-Duty Vehicles’’ (89 Fed. Reg. 27842 15
(April 18, 2024)) shall have no force or effect. 16
SEC. 202. REPEAL OF PHASE 3 HEAVY-DUTY VEHICLE 17
GREENHOUSE GAS EMISSIONS STANDARDS. 18
The final rule of the Administrator of the Environ-19
mental Protection Agency entitled ‘‘Greenhouse Gas 20
Emissions Standards for Heavy-Duty Vehicles—Phase 3’’ 21
(89 Fed. Reg. 29440 (April 22, 2024)) shall have no force 22
or effect. 23
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SEC. 203. REPEAL OF CAFE STANDARDS RULES. 1
The final rules of the National Highway Traffic Safe-2
ty Administration entitled ‘‘Corporate Average Fuel Econ-3
omy Standards for Passenger Cars and Light Trucks for 4
Model Years 2027 and Beyond and Fuel Efficiency Stand-5
ards for Heavy-Duty Pickup Trucks and Vans for Model 6
Years 2030 and Beyond’’ (89 Fed. Reg. 52540 (June 24, 7
2024)) and ‘‘Corporate Average Fuel Economy Standards 8
for Passenger Cars and Light Trucks for Model Years 9
2027-2032 and Fuel Efficiency Standards for Heavy-Duty 10
Pickup Trucks and Vans for Model Years 2030-2035; Cor-11
rection’’ (89 Fed. Reg. 60832 (July 29, 2024)) shall have 12
no force or effect. 13
TITLE III—EMISSIONS WAIVERS 14
SEC. 301. ELIMINATION OF VEHICLE EMISSIONS WAIVERS. 15
(a) A
MENDMENT.—Section 209(b) of the Clean Air 16
Act (42 U.S.C. 7543(b)) is amended by adding at the end 17
the following: 18
‘‘(4) N
O FURTHER WAIVERS .—Notwithstanding 19
any other provision of this section, beginning on the 20
date of enactment of this paragraph, the Adminis-21
trator shall not grant a waiver under paragraph (1) 22
to enforce a standard for the control of emissions 23
from new motor vehicles or new motor vehicle en-24
gines that differs from a standard established under 25
this Act by the Administrator.’’. 26
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(b) REVOCATION OFEXISTINGSTANDARDS.—Each 1
waiver issued under section 209(b) of the Clean Air Act 2
(42 U.S.C. 7543(b)) before the date of enactment of this 3
Act, including any waiver issued under that section to the 4
State of California for zero-emission vehicle mandates, is 5
revoked. 6
(c) R
EPEAL.— 7
(1) I
N GENERAL.—Section 177 of the Clean Air 8
Act (42 U.S.C. 7507) is repealed. 9
(2) C
ONFORMING AMENDMENT .—Section 10
249(e)(3) of the Clean Air Act (42 U.S.C. 11
7589(e)(3)) is amended by striking the second sen-12
tence. 13
TITLE IV—FEDERAL GREEN-14
HOUSE GAS EMISSIONS 15
STANDARDS AND CAFE 16
STANDARDS 17
Subtitle A—Establishment of New 18
Passenger Automobile Standards 19
SEC. 401. DEFINITIONS. 20
In this subtitle: 21
(1) A
DMINISTRATOR.—The term ‘‘Adminis-22
trator’’ means the Administrator of the Environ-23
mental Protection Agency. 24
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(2) CAFE STANDARDS.—The term ‘‘CAFE 1
standards’’ means the Corporate Average Fuel 2
Economy standards required under section 32902(a) 3
of title 49, United States Code. 4
(3) G
REENHOUSE GAS EMISSIONS .—The term 5
‘‘greenhouse gas emissions’’ means emissions of car-6
bon dioxide, methane, nitrous oxide, and other gases 7
that contribute to climate change. 8
(4) S
ECRETARY.—The term ‘‘Secretary’’ means 9
the Secretary of Transportation. 10
SEC. 402. ESTABLISHMENT OF CAFE STANDARDS AND 11
GREENHOUSE GAS EMISSIONS STANDARDS. 12
(a) N
EWSTANDARDS.— 13
(1) CAFE
STANDARDS.—Not later than 180 14
days after the date of enactment of this Act, the 15
Secretary, in consultation with the Secretary of En-16
ergy and the Administrator, shall establish CAFE 17
standards for passenger automobiles (as defined in 18
section 32901(a) of title 49, United States Code) 19
and light-duty trucks (as defined in section 20
86.1803–01 of title 40, Code of Federal Regulations 21
(or a successor regulation)) for model years 2027 22
through 2035 in accordance with this section. 23
(2) EPA
EMISSIONS STANDARDS .—Not later 24
than 180 days after the date of enactment of this 25
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Act, and notwithstanding any other provision of law, 1
the Administrator, in coordination with the Sec-2
retary, shall establish standards for greenhouse gas 3
emissions from new motor vehicles and new motor 4
vehicle engines (as those terms are defined in section 5
216 of the Clean Air Act (42 U.S.C. 7550)) under 6
section 202 of the Clean Air Act (42 U.S.C. 7521) 7
for model years 2027 through 2035 in accordance 8
with this section. 9
(b) R
EQUIREMENTS.— 10
(1) B
ASES.—The CAFE standards and green-11
house gas emissions standards established under 12
paragraphs (1) and (2), respectively, of subsection 13
(a) shall— 14
(A) be based on economic practicability 15
and reflect achievable technological advance-16
ments based on market readiness and afford-17
ability; and 18
(B) be based on evidence from industry ca-19
pacity, historical data, and independent expert 20
assessments to determine feasibility and eco-21
nomic impact, including on motor vehicle manu-22
facturing job quality and stability. 23
(2) CAFE
STANDARDS.—Notwithstanding any 24
other provision of law, in establishing the CAFE 25
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standards under subsection (a)(1), the Secretary 1
may not consider the fuel economy of dedicated 2
automobiles in any baseline fleet or scenario. 3
(3) G
REENHOUSE GAS STANDARDS .—Notwith-4
standing any other provision of law, the greenhouse 5
gas emissions standards established under sub-6
section (a)(2)— 7
(A) shall be technologically feasible and 8
economically practicable for vehicles of any 9
weight class or category when operated on re-10
formulated gasoline that complies with section 11
211(o) of the Clean Air Act (42 U.S.C. 12
7545(o)); and 13
(B) shall not require, directly or indirectly, 14
the production or sale of vehicles operated on 15
electricity. 16
(c) C
ONSULTATION.— 17
(1) I
N GENERAL.—In establishing the CAFE 18
standards and greenhouse gas emissions standards 19
required under paragraphs (1) and (2), respectively, 20
of subsection (a), the Secretary and the Adminis-21
trator shall, after providing adequate notice, consult 22
with manufacturers (as defined in section 32901(a) 23
of title 49, United States Code), energy producers, 24
consumer groups, and other relevant stakeholders. 25
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(2) USE OF FEEDBACK.—Any feedback received 1
from an entity described in paragraph (1) during a 2
consultation described in that paragraph shall be 3
considered by the Secretary and the Administrator 4
to ensure the CAFE standards and greenhouse gas 5
emissions standards required under paragraphs (1) 6
and (2), respectively, of subsection (a) are techno-7
logically and economically achievable. 8
(d) R
EPORTS; ADJUSTMENT OFSTANDARDS.— 9
(1) R
EPORTS.—The Secretary and the Adminis-10
trator shall each submit to Congress a biennial re-11
port detailing progress toward achieving the applica-12
ble standards established under subsection (a) for 13
2035. 14
(2) A
DJUSTMENT OF STANDARDS .—Based on 15
findings in a report submitted under paragraph (1), 16
including market conditions, technological advance-17
ments, and economic impact assessments, the Sec-18
retary and the Administrator, as applicable, may ad-19
just the CAFE standards and greenhouse gas emis-20
sions standards required under paragraphs (1) and 21
(2), respectively, of subsection (a). 22
(e) C
ONTINUATION OF CURRENTSTANDARDS.—If 23
the Secretary and the Administrator do not establish the 24
CAFE standards and greenhouse gas emissions standards 25
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required under paragraphs (1) and (2), respectively, of 1
subsection (a) by the deadlines described in those para-2
graphs, the CAFE standards and greenhouse gas emis-3
sions standards for model year 2025 shall continue in ef-4
fect through model year 2035. 5
SEC. 403. COMPLIANCE WITH FLEET AVERAGE CARBON DI-6
OXIDE EMISSIONS STANDARDS. 7
(a) G
REENHOUSE GASEMISSIONSSTANDARDS.— 8
Section 206 of the Clean Air Act (42 U.S.C. 7525) is 9
amended by adding at the end the following: 10
‘‘(i) D
EEMEDCOMPLIANCE.—If a manufacturer com-11
plies with the applicable Corporate Average Fuel Economy 12
standards required under section 32902(a) of title 49, 13
United States Code, in a model year with respect to the 14
passenger automobiles, non-passenger automobiles, and 15
work trucks (as those terms are defined in section 16
32901(a) of that title) manufactured by the manufacturer, 17
including through payment of civil penalties pursuant to 18
section 32919 of that title or through the purchase of 19
credits available to the manufacturer under section 32903 20
of that title, the manufacturer shall be considered to be 21
in compliance with fleet-average greenhouse gas emissions 22
standards under section 202, including fleet-average car-23
bon dioxide emissions standards, that are applicable to 24
those vehicles in that model year.’’. 25
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(b) CAFE STANDARDS.—Section 32902 of title 49, 1
United States Code, is amended by adding at the end the 2
following: 3
‘‘(l) D
EEMEDCOMPLIANCE.—If a manufacturer com-4
plies with the fleet-average greenhouse gas emissions 5
standards under section 202 of the Clean Air Act (42 6
U.S.C. 7521), including fleet-average carbon dioxide emis-7
sions standards, for light-duty vehicles and medium-duty 8
vehicles (as those terms are defined in section 86.1803– 9
01 of title 40, Code of Federal Regulations (or a successor 10
regulation) for a model year, including through purchased 11
credits, the manufacturer shall be considered to be in com-12
pliance with the average fuel economy standard prescribed 13
under this section applicable to those vehicles in that 14
model year.’’. 15
SEC. 404. AUTHORIZATION OF APPROPRIATIONS. 16
There are authorized to be appropriated such sums 17
as are necessary to carry out this subtitle and the amend-18
ments made by this subtitle. 19
Subtitle B—Establishment of New 20
Heavy-Duty Vehicle Standards 21
SEC. 411. ESTABLISHMENT OF HEAVY-DUTY VEHICLE 22
GREENHOUSE GAS EMISSIONS STANDARDS. 23
(a) D
EFINITIONS.—In this section: 24
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(1) ADMINISTRATOR.—The term ‘‘Adminis-1
trator’’ means the Administrator of the Environ-2
mental Protection Agency. 3
(2) G
REENHOUSE GAS EMISSIONS .—The term 4
‘‘greenhouse gas emissions’’ means emissions of car-5
bon dioxide, methane, nitrous oxide, and other gases 6
that contribute to climate change. 7
(b) N
EWSTANDARDS.— 8
(1) I
N GENERAL.—Not later than 180 days 9
after the date of enactment of this Act, the Adminis-10
trator, in consultation with the Secretary of Trans-11
portation, shall publish in the Federal Register new 12
greenhouse gas emissions standards for heavy-duty 13
trucks beginning no earlier than model year 2027. 14
(2) I
NTERIM STANDARDS .—During the period 15
beginning on the date of enactment of this Act and 16
ending on the date on which the new greenhouse gas 17
emissions standards established under paragraph (1) 18
is finalized, the greenhouse gas emissions standards 19
for heavy-duty trucks shall be the standards for 20
model year 2024 as described in the final rule of the 21
Administrator and the Administrator of the National 22
Highway Traffic Safety Administration entitled 23
‘‘Greenhouse Gas Emissions and Fuel Efficiency 24
Standards for Medium- and Heavy-Duty Engines 25
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and Vehicles—Phase 2’’ (81 Fed. Reg. 73478 (Octo-1
ber 25, 2016)). 2
(c) R
EQUIREMENTS.—The greenhouse gas emissions 3
standards established under subsection (b)(1) shall— 4
(1) reflect achievable technological advance-5
ments based on market readiness and affordability; 6
and 7
(2) be based on evidence from industry capac-8
ity, historical market adoption data, technological 9
advancements, and independent expert assessments 10
to determine feasibility and economic impact, includ-11
ing on motor vehicle manufacturing job quality and 12
stability. 13
(d) C
ONSULTATION.—In establishing the greenhouse 14
gas emissions standards under subsection (b)(1), the Ad-15
ministrator shall, after providing adequate notice, consult 16
with manufacturers, automotive dealers, end users, energy 17
producers, consumer groups, and other relevant stake-18
holders. 19
Æ
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