Transportation Freedom Act

This bill would give a big tax break to car and truck makers that keep good, U.S.-based manufacturing jobs. Qualifying companies could deduct double the amount of certain wages for U.S. auto workers, up to $150,000 per worker each year . To qualify, at least 75% of vehicles and key parts must be made and assembled in the United States; workers must be paid at or above the 75th percentile for their job; the company must offer top-tier health coverage to current and retired workers and strong retirement benefits (a pension that replaces at least half of pay after a long career, or a 401(k) with at least a 10% employer contribution); stay neutral if workers try to unionize; share profits with at least $2,000 per worker for each $1 billion in special dividends or stock redemptions; and not move production overseas .

It would also cancel several 2024 federal rules on vehicle pollution and fuel economy, and stop states from setting their own stricter car rules by revoking past waivers (including California’s) and banning new ones . Going forward, the EPA and Transportation Department would have six months to set new national standards for model years 2027–2035; these must be practical and cannot require automakers to sell electric vehicles. If the new rules aren’t set on time, the 2025 rules stay in place through 2035. Automakers that meet fuel economy targets will be counted as meeting emissions targets, and vice versa, including when using credits or paying penalties. For heavy-duty trucks, new greenhouse gas limits must be set (no earlier than 2027), and until then the 2024 standards from an earlier rule apply .

Key points

• Who is affected: U.S. auto workers and their families; car and parts makers; drivers and car buyers; states that set their own car rules .
• What changes: Double wage deduction (up to $150,000 per worker) tied to strong worker pay/benefits and U.S. production; repeal of 2024 federal vehicle standards; end to state-specific car rules; new national standards that cannot force EV sales; cross-crediting between fuel economy and emissions compliance; updated heavy‑duty truck rules with an interim standard .
• When: Tax changes would apply to tax years after the bill becomes law; new national standards due within 180 days; covers model years 2027–2035; if deadlines are missed, 2025 rules continue through 2035 .