Rep. Estes Introduces EBITDA Act to Restore Tax Deductions for Business Interest Expenses
This bill was recently introduced and is currently being reviewed by the House Committee on Ways and Means. It is in the early stages of the legislative process and is considered active. There are no upcoming votes or hearings scheduled at this time.
Companion bill: Business Tax: Increasing Interest Deductions →While this is a priority for business groups, standalone tax bills face a difficult path in a divided Congress unless they are part of a larger compromise.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Small businesses that borrow money to invest in equipment, real estate, or expansion would be able to deduct more of their interest expenses from their taxable income. This is especially helpful for capital-intensive small businesses like manufacturers, contractors, and farming operations that rely on debt financing to grow. The more generous EBITDA-based formula excludes depreciation and amortization from the calculation, which means a higher cap on deductible interest.
“To amend the Internal Revenue Code of 1986 to repeal the modification of the definition of adjusted taxable income for purposes of the limitation on business interest.”
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
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