Transportation Freedom Act
Official title: 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.
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Read twice and referred to the Committee on Finance.
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.
- Introduced in Senate Formatted Text PDF Formatted XML
- AMERICAN HONDA MOTOR CO., INC.
- FEDEX CORPORATION
- AMERICAN TRUCKING ASSOCIATIONS
- OGR
- OGR
- THE NATIONAL RIGHT TO WORK COMMITTEE
Bodies those filers lobbied
- HOUSE OF REPRESENTATIVES
- SENATE
- Transportation, Dept of (DOT)
- Treasury, Dept of
- Labor, Dept of (DOL)
- U.S. Trade Representative (USTR)
- Environmental Protection Agency (EPA)
- Federal Motor Carrier Safety Administration
Cite this page
U.S. Congress. (2026). S. 711: Transportation Freedom Act. 119th Congress. Open America. https://openamerica.io/bill/119-S-711/
"S. 711: Transportation Freedom Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-S-711/.
S. 711, 119th Cong. (2026), https://openamerica.io/bill/119-S-711/.
[S. 711: Transportation Freedom Act](https://openamerica.io/bill/119-S-711/)