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119-s-711119th CongressWALLET

Transportation Freedom Act

Sponsored By: Senator Moreno, Bernie [R-OH]

Introduced

Summary

A new 200-percent wage deduction for U.S. automobile manufacturing workers would be the centerpiece, paired with a broad rollback and rewrite of federal vehicle emissions and fuel‑economy rules. The bill ties the tax break to strict domestic-content, benefits, and labor-neutrality requirements while directing agencies to replace current emissions regimes for 2027–2035.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Big tax break for auto makers

If enacted, qualifying auto manufacturers would be able to claim a new Section 199B deduction. The deduction equals 200% of elected eligible wages, capped at $150,000 per worker per year. Eligible wages must be at least the 75th percentile for that occupation within the firm's 4-digit industry group. Taxpayers must elect the deduction, certify compliance, and cannot also deduct those wages under section 162(a). To qualify, firms must meet tests: 75% or more U.S. final assembly and 75% finished components made in the U.S., no prior offshoring, platinum-level group health coverage, specified pension rules, profit-sharing rules, and a neutral position on organizing. Companies with audited financial statements must reduce book income by any Section 199B deduction allowed. These rules apply for taxable years beginning after enactment.

National vehicle standards and waivers

If enacted, Transportation and EPA would have 180 days to set fuel-economy and greenhouse gas rules for 2027–2035. If they miss the deadline, 2025 standards would remain in effect through 2035. The bill would require two-year reports to Congress and allow agencies to adjust standards based on market and technology. Agencies must give notice and consult manufacturers, dealers, consumers, energy producers, and users when making rules. The bill would ban new Clean Air Act waivers and revoke existing waivers, including California's zero-emission vehicle waiver. It would repeal the law that lets states adopt California vehicle standards. Several recent EPA and NHTSA final 2024 rules would be voided on enactment. The bill would treat meeting CAFE as meeting EPA fleet greenhouse gas rules, and vice versa. It would authorize such sums as are necessary to carry out Subtitle A.

Sponsors & CoSponsors

Sponsor

Moreno, Bernie [R-OH]

OH • R

Cosponsors

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 2/25/2025

  • Sen. Banks, Jim [R-IN]

    IN • R

    Sponsored 2/25/2025

  • Sen. Justice, James C. [R-WV]

    WV • R

    Sponsored 2/25/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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