I 
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 subse-
quently 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 Representa-
tives 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. 
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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 me-
dium-duty vehicles. 
Sec. 202. Repeal of phase 3 heavy-duty vehicle greenhouse gas emissions stand-
ards. 
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 stand-
ards. 
TITLE I—SUPPORT FOR AMER-
ICAN 
AUTOMOBILE 
MANU-
FACTURING 
SEC. 101. ENHANCED DEDUCTION FOR WAGES PAID TO 
AUTOMOBILE MANUFACTURING WORKERS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new section: 
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‘‘SEC. 199B. WAGES PAID TO AUTOMOBILE MANUFAC-
TURING 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 auto-
mobiles 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 tax-
able year, the final assembly (as defined in section 
30D(d)(5)) of not less than 75 percent of such vehi-
cles occurred in the United States, 
‘‘(3) with respect to the manufacturing of fin-
ished engines, transmissions, or advanced battery 
cells (including manufacturing pursuant to joint ven-
tures or other collaborative manufacturing agree-
ments) during the preceding taxable year, not less 
than 75 percent of such finished engines, trans-
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missions, or advanced battery cells which were incor-
porated into new automobiles, light-duty trucks, or 
heavy-duty trucks for sale by the entity were pro-
duced 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 manufac-
tured in the United States, 
‘‘(5) during the preceding taxable year, with re-
spect 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 ap-
plicable requirement of subsection (e), 
‘‘(6) during the preceding taxable year, with re-
spect to all retired individuals who, prior to retire-
ment, were applicable individuals, offered coverage 
for the retired individual under a group health plan 
in the platinum level of coverage (as described in 
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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 dis-
tributed 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 in-
dividual 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 em-
ployees 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 sec-
tion, the term ‘eligible wages’ means any wages paid 
or incurred by a qualifying taxpayer during the tax-
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able year to any applicable individual, provided that 
the wages paid to such individual during such tax-
able year are not less than the 75th percentile of 
wages paid for the occupation of the individual (as 
designated in accordance with the Standard Occupa-
tional Classification System) with respect to the ap-
plicable 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 indi-
vidual directly engaged in the manufacturing of auto-
mobiles 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 pro-
jected to provide an applicable individual with not 
less than 50 percent wage replacement upon retire-
ment, for the entire length of the individual’s retire-
ment, provided the applicable individual is employed 
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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 sub-
section with respect to a defined contribution plan is 
that such plan is a qualified cash or deferred ar-
rangement 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 BUSI-
NESS 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 Sec-
retary provides) a certification that the applicable require-
ments under this section have been satisfied.’’. 
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(b) ADJUSTED FINANCIAL STATEMENT INCOME.— 
Section 56A(c) of the Internal Revenue Code of 1986 is 
amended— 
(1) by redesignating paragraph (15) as para-
graph (16), and 
(2) by inserting after paragraph (14) the fol-
lowing new paragraph: 
‘‘(15) WAGES PAID TO AUTOMOBILE MANUFAC-
TURING WORKERS.—Adjusted financial statement in-
come shall be— 
‘‘(A) reduced by the deduction for eligible 
wages allowed under section 199B to the extent 
of the amount allowed as deductions in com-
puting taxable income for the taxable year, and 
‘‘(B) appropriately adjusted— 
‘‘(i) to disregard any wages taken into 
account on the taxpayer’s applicable finan-
cial statement that were also taken into ac-
count in determining the amount of the de-
duction 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.’’. 
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(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 Environ-
mental Protection Agency entitled ‘‘Multi-Pollutant Emis-
sions 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 Environ-
mental 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. 
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SEC. 203. REPEAL OF CAFE STANDARDS RULES. 
The final rules of the National Highway Traffic Safe-
ty Administration entitled ‘‘Corporate Average Fuel Econ-
omy Standards for Passenger Cars and Light Trucks for 
Model Years 2027 and Beyond and Fuel Efficiency Stand-
ards 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 Adminis-
trator 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 en-
gines that differs from a standard established under 
this Act by the Administrator.’’. 
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(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 car-
bon 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 En-
ergy 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 
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