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Congress·In Committee·H.R. 2814

House Republicans' Transportation Freedom Act Would Double Wage Deductions for U.S. Automakers, Roll Back EPA Rules

Transportation Freedom Act

12 months ago·View on Congress.gov
⏸

Stalled

No legislative action in over 90 days.

Legislative Progress

House
Senate
President
Law

Key Points

  • Companies that build at least 75% of their cars and parts in the U.S. could receive a massive tax break. They would be allowed to deduct double the amount they pay in worker wages from their taxes, up to $150,000 per worker, as long as they provide top-tier health insurance and retirement plans.

    From policy text

    “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.”
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  • The bill cancels several recent environmental rules from the EPA and the Department of Transportation that required cars and trucks to get better gas mileage or produce fewer greenhouse gases. It also stops states like California from setting their own stricter pollution rules for vehicles.

    From policy text

    “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.”
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  • To qualify for the new tax breaks, car companies must stay neutral if workers try to join a union. They also have to pay workers at least as much as the top 25% of people in similar jobs and share profits with employees when they pay out dividends to shareholders.
  • New federal rules for gas mileage and pollution would be created, but they cannot force companies to sell electric vehicles. These rules must be based on what is affordable for consumers and realistic for the current car market rather than pushing for a total shift away from gas-powered engines.

    From policy text

    “shall not require, directly or indirectly, the production or sale of vehicles operated on electricity.”
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TaxesEnergy EnvironmentLabor Employment

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Apr 10, 2025House

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.

Apr 10, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 180 days of enactment

New federal fuel economy and emissions standards for cars and light trucks must be established

The government would set new rules for how much gas cars and trucks can use, replacing the stricter rules that were canceled. These new rules cannot force automakers to sell electric vehicles and must be based on what's affordable and realistic for the market.

First full tax year after enactment

200% wage deduction becomes available to qualifying automakers

Auto companies that build most of their vehicles in the U.S., pay workers well, offer platinum-level health insurance, and stay neutral on union organizing can start claiming the doubled tax deduction on worker wages, potentially saving billions in taxes.

Upon enactment

California's vehicle emissions waiver and all state-level stricter standards are revoked

States that followed California's tougher vehicle emissions rules — including zero-emission vehicle mandates — would immediately lose authority to enforce those standards. This affects about a third of the U.S. auto market and could slow EV adoption in those states.

Related Bills

1 bill
S. 711Identical bill

Transportation Freedom Act

Feb 25 — Read twice and referred to the Committee on Finance.

Source Information

Document Type

Congressional Bill

Official Title

Transportation Freedom Act

Bill NumberHR 2814
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred 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.

Sponsor

Cosponsors

(16)
D: 1R: 15

Analysis generated by AI. Always verify with official sources.