Transportation Freedom Act
Transportation Freedom Act
Plain Language Summary
# Transportation Freedom Act Summary **What the Bill Would Do** The Transportation Freedom Act (HR 2814) would reduce taxes on automobile manufacturers and roll back recent environmental regulations on vehicles. Specifically, it would create a new tax deduction allowing car and truck makers to deduct twice the wages they pay workers in domestic production, with some limitations. The bill would also cancel EPA rules from 2024 that require cars and trucks to reduce greenhouse gas emissions starting in 2027, and would eliminate stricter pollution standards for heavy-duty vehicles like school buses and semi-trucks. **Who It Affects** This bill primarily benefits automobile manufacturers and component suppliers through tax breaks. It would affect consumers indirectly by potentially keeping vehicle prices lower and delaying stricter environmental standards.
Environmental advocates argue it would harm public health and climate goals, while supporters contend it reduces regulatory burdens on domestic auto producers and protects American jobs in the industry. **Current Status** The bill is currently in committee and has not yet been voted on by Congress. Sponsor Troy Balderson (R-OH) introduced it during the 119th Congress. Like most bills, it would need committee approval and floor votes in both the House and Senate to become law.
CRS Official Summary
Transportation Freedom ActThis bill reduces taxes on auto companies and repeals specified environmental regulations on cars and trucks.The bill establishes a new tax deduction equal to 200% of eligible wages paid or incurred by domestic producers of automobiles or automobile components, subject to limitations. It also allows an entity to reduce (and adjust) its financial statement income (for purposes of calculating liability for the alternative minimum tax) by the amount of eligible wages it elects to deduct.The bill nullifies the 2024 rules of the Environmental Protection Agency (EPA) regarding (1) the finalization of specified greenhouse gas (GHG) programs and the reduction of emissions from certain light-duty and medium-duty vehicles (e.g., cars and trucks that are under a certain weight) starting with model year 2027, and (2) phase three of GHG emission standards for heavy-duty vehicles (e.g., school buses and tractor-trailer trucks).It also repeals the 2024 rules of the National Highway Traffic Safety Administration (NHTSA) regarding corporate average fuel economy (CAFE) standards for certain cars, trucks, and vans. Additionally, the bill eliminates (1) the option given to California to set standards for car emissions that are more stringent than those set under the Clean Air Act, and (2) the option for other states to adopt California's standards. NHTSA and the EPA must establish new CAFE and GHG standards, respectively, for vehicles that are economically practicable and technologically feasible. The GHG standards may not require the production or sale of electric vehicles.
Latest Action
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.