H.R. 2814 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned, Apr 10, 2025
What this bill does
In plain words · AI-written from the official summaryCuts auto taxes and removes car emission rules
This bill would give auto companies a new tax deduction for wages they pay workers who make cars and parts. It would also cancel several environmental rules from 2024 that set stricter limits on pollution from cars, trucks, and buses starting in 2027. The bill would also remove a rule that lets California set its own car emission standards, and it prevents other states from following California's lead. Federal agencies would have to write new pollution and fuel economy standards, but these new rules couldn't require automakers to produce electric vehicles.
How it affects you
If you buy a car, this could mean less strict pollution controls on new vehicles and potentially different fuel economy standards than currently planned. Workers at auto companies and parts suppliers might see wages affected by the new tax deduction available to their employers. States like California that wanted stricter car pollution rules would lose that ability under this bill.
Read the official summary (Introduced in House, Apr 10, 2025)
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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 2814
A BILL
Transportation Freedom Act
Sponsor: Rep. Troy Balderson (R-OH-12) · Introduced Apr 10, 2025 · Environmental Protection · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 10, 2025: “Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.”