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Transportation Freedom Act
3/21/2025, 4:08 AM
Summary of Bill S 711
The proposed legislation is designed to support the automobile manufacturing industry, which plays a significant role in the US economy. By providing a tax deduction for wages paid to workers in this sector, the bill aims to encourage companies to invest in their workforce and create more job opportunities for individuals in this field.
In addition to the enhanced deduction for wages, the bill also includes provisions for other purposes related to the automobile manufacturing industry. While the specifics of these additional purposes are not outlined in the summary, it is clear that the overall goal of the legislation is to support and strengthen this important sector of the economy. Overall, Bill 119 s 711 seeks to promote growth and stability in the automobile manufacturing industry by providing tax incentives for companies to invest in their workforce. If passed, this legislation could have a positive impact on both businesses and workers in this sector.
Congressional Summary of S 711
Transportation Freedom Act
This bill reduces taxes on auto companies and repeals specified environmental regulations on cars and trucks.
The bill establishes a new tax deduction equal to 200% of eligible wages paid or incurred by domestic producers of automobiles or automobile components, subject to limitations. It also allows an entity to reduce (and adjust) its financial statement income (for purposes of calculating liability for the alternative minimum tax) by the amount of eligible wages it elects to deduct.
The bill nullifies the 2024 rules of the Environmental Protection Agency (EPA) regarding (1) the finalization of specified greenhouse gas (GHG) programs and the reduction of emissions from certain light-duty and medium-duty vehicles (e.g., cars and trucks that are under a certain weight) starting with model year 2027, and (2) phase three of GHG emission standards for heavy-duty vehicles (e.g., school buses and tractor-trailer trucks).
It also repeals the 2024 rules of the National Highway Traffic Safety Administration (NHTSA) regarding corporate average fuel economy (CAFE) standards for certain cars, trucks, and vans.
Additionally, the bill eliminates (1) the option given to California to set standards for car emissions that are more stringent than those set under the Clean Air Act, and (2) the option for other states to adopt California's standards.
NHTSA and the EPA must establish new CAFE and GHG standards, respectively, for vehicles that are economically practicable and technologically feasible. The GHG standards may not require the production or sale of electric vehicles.
