119-s711

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 711 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 711

 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 SENATE OF THE UNITED STATES

 February 25, 2025

 Mr. Moreno (for himself, Mr. Sheehy, Mr. Banks, and Mr. Justice) 
introduced the following bill; which was read twice and referred to the 
 Committee on Finance

_______________________________________________________________________

 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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