Transportation Freedom Act
Transportation Freedom Act
Plain Language Summary
# Transportation Freedom Act (S 711) Summary **What It Would Do:** This bill would reduce taxes on automobile manufacturers and repeal recent Environmental Protection Agency (EPA) rules aimed at reducing vehicle emissions. Specifically, it would allow car and truck makers to deduct twice the wages they pay workers in manufacturing, lowering their tax burden. It would also cancel EPA emissions standards for cars, trucks, and heavy-duty vehicles (like school buses and semi-trucks) that were finalized in 2024. **Who It Affects:** The bill primarily benefits domestic auto manufacturers and their suppliers through tax breaks.
It would affect consumers by potentially keeping stricter emission standards off the market, and could impact environmental quality and public health given the repeal of pollution-reduction rules. Workers in the auto industry might benefit from incentives for domestic production. **Current Status:** The bill is currently in committee (S 711, 119th Congress) and has not yet been voted on by the full Senate. It was introduced by Senator Bernie Moreno (R-OH).
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
Read twice and referred to the Committee on Finance.