H.R. 2814

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2814 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 2814

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 HOUSE OF REPRESENTATIVES

April 10, 2025

Mr. Balderson (for himself and Mr. Barr) introduced the following bill; 
which was 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

_______________________________________________________________________

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Transportation 
Freedom Act''.
(b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
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 medium-duty vehicles.
Sec. 202. Repeal of phase 3 heavy-duty vehicle greenhouse gas emissions 
standards.
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 
standards.

TITLE I--SUPPORT FOR AMERICAN AUTOMOBILE MANUFACTURING

SEC. 101. ENHANCED DEDUCTION FOR WAGES PAID TO AUTOMOBILE MANUFACTURING 
WORKERS.

(a) In General.--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:

``SEC. 199B. WAGES PAID TO AUTOMOBILE MANUFACTURING WORKERS.

``(a) In General.--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.
``(b) Qualifying Taxpayer.--For 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 general.--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.
``(2) Limitation.--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.
``(d) Applicable Individual.--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.
``(e) Pension Requirements.--
``(1) Defined benefit pension plans.--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.
``(2) Defined contribution pension plans.--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.
``(f) Denial of Deduction for Trade or Business Expenses.--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).
``(g) Election.--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.
``(h) Certification.--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.''.
(b) Adjusted Financial Statement Income.--Section 56A(c) of the 
Internal Revenue Code of 1986 is amended--
(1) by redesignating paragraph (15) as paragraph (16), and
(2) by inserting after paragraph (14) the following new 
paragraph:
``(15) Wages paid to automobile manufacturing workers.--
Adjusted 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.''.
(c) Clerical Amendment.--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:

``Sec. 199B. Wages paid to automobile manufacturing workers.''.
(d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

TITLE II--MULTIPOLLUTANT EMISSIONS STANDARDS

SEC. 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.

SEC. 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.

SEC. 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.

TITLE III--EMISSIONS WAIVERS

SEC. 301. ELIMINATION OF VEHICLE EMISSIONS WAIVERS.

(a) Amendment.--Section 209(b) of the Clean Air Act (42 U.S.C. 
7543(b)) is amended by adding at the end the following:
``(4) No further waivers.--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.''.
(b) Revocation of Existing Standards.--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.
(c) Repeal.--
(1) In general.--Section 177 of the Clean Air Act (42 
U.S.C. 7507) is repealed.
(2) Conforming amendment.--Section 249(e)(3) of the Clean 
Air Act (42 U.S.C. 7589(e)(3)) is amended by striking the 
second sentence.

TITLE IV--FEDERAL GREENHOUSE GAS EMISSIONS STANDARDS AND CAFE STANDARDS

Subtitle A--Establishment of New Passenger Automobile Standards

SEC. 401. DEFINITIONS.

In this subtitle:
(1) Administrator.--The term ``Administrator'' means the 
Administrator of the Environmental Protection Agency.
(2) CAFE standards.--The term ``CAFE standards'' means the 
Corporate Average Fuel Economy standards required under section 
32902(a) of title 49, United States Code.
(3) Greenhouse gas emissions.--The term ``greenhouse gas 
emissions'' means emissions of carbon dioxide, methane, nitrous 
oxide, and other gases that contribute to climate change.
(4) Secretary.--The term ``Secretary'' means the Secretary 
of Transportation.

SEC. 402. ESTABLISHMENT OF CAFE STANDARDS AND GREENHOUSE GAS EMISSIONS 
STANDARDS.

(a) New Standards.--
(1) CAFE 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.
(2) EPA emissions standards.--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.
(b) Requirements.--
(1) Bases.--The CAFE standards and greenhouse gas emissions 
standards established under paragraphs (1) and (2), 
respectively, of subsection (a) shall--
(A) be based on economic practicability and reflect 
achievable technological advancements based on market 
readiness and affordability; and
(B) 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.
(2) CAFE standards.--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.
(3) Greenhouse gas standards.--Notwithstanding any other 
provision of law, the greenhouse gas emissions standards 
established under subsection (a)(2)--
(A) 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
(B) shall not require, directly or indirectly, the 
production or sale of vehicles operated on electricity.
(c) Consultation.--
(1) In general.--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.
(2) Use of feedback.--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.
(d) Reports; Adjustment of Standards.--
(1) Reports.--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.
(2) Adjustment of standards.--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).
(e) Continuation of Current Standards.--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.

SEC. 403. COMPLIANCE WITH FLEET AVERAGE CARBON DIOXIDE EMISSIONS 
STANDARDS.

(a) Greenhouse Gas Emissions Standards.--Section 206 of the Clean 
Air Act (42 U.S.C. 7525) is amended by adding at the end the following:
``(i) Deemed Compliance.--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.''.
(b) CAFE Standards.--Section 32902 of title 49, United States Code, 
is amended by adding at the end the following:
``(l) Deemed Compliance.--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.''.

SEC. 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.

Subtitle B--Establishment of New Heavy-duty Vehicle Standards

SEC. 411. ESTABLISHMENT OF HEAVY-DUTY VEHICLE GREENHOUSE GAS EMISSIONS 
STANDARDS.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the 
Administrator of the Environmental Protection Agency.
(2) Greenhouse gas emissions.--The term ``greenhouse gas 
emissions'' means emissions of carbon dioxide, methane, nitrous 
oxide, and other gases that contribute to climate change.
(b) New Standards.--
(1) In general.--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.
(2) Interim standards.--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)).
(c) Requirements.--The greenhouse gas emissions standards 
established under subsection (b)(1) shall--
(1) reflect achievable technological advancements based on 
market readiness and affordability; and
(2) 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.
(d) Consultation.--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.
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