Even within the definition of free market there exists degrees of freedom. On one side, that id expect most Americans to be familiar with, is laissez faire capitalism. Im not sure how far it goes into the other direction before it stops being considered a free market, but if the existence of government incentives on the market stops it from being a free market, the US is also not a free market.

That is to say, I believe free markets can exist along side government policy.