Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the Ensuring Better Interest Treatment and Deductibility Act (EBITDA), aims to modify how interest expenses are treated for tax purposes. Specifically, it seeks to repeal a provision in the Internal Revenue Code that limited the deductibility of business interest expense based on adjusted taxable income. This change would allow businesses to deduct more of their interest expenses, potentially boosting investment and economic activity. The provisions will take effect starting in 2026.
Key provisions
- Repeals a section of the Internal Revenue Code (163(j)(8)(A)) that limits business interest deductions.
- Modifies the calculation of adjusted taxable income for interest deduction purposes.
- Increases the potential for businesses to deduct interest expenses.
Who is affected
- Businesses
- Corporations
- Taxpayers
Notable changes
- The bill alters the existing rules regarding the deductibility of business interest.
- The change will impact tax liabilities for businesses starting in 2026.
Fiscal impact
The bill could have a positive fiscal impact by increasing business investment and potentially increasing tax revenue.
Bill text
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Sponsors
Official sponsors from legislative records.
23 on record
Primary sponsor
Cosponsors
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