Congress·In Committee·S. 4221

Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Business Tax: Increasing Interest Deductions

Mar 26·View on Congress.gov·Read full text

Part of: Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Next up: A senate committee

This bill was recently introduced in the Senate and is currently being reviewed by the Committee on Finance. It is in the early stages of the lawmaking process and has no upcoming votes scheduled at this time. There is no companion bill currently linked to this legislation.

Companion bill: Rep. Estes Introduces EBITDA Act to Restore Tax Deductions for Business Interest Expenses →

Legislative Progress

Senate

House

President

Law

Unlikely to pass

This bill focuses on a specific technical tax rule and currently only has Republican support. It will likely struggle to get enough votes to pass in the Senate.

Key Points

This bill changes tax rules to let businesses deduct more of the interest they pay on loans. It changes the formula used to decide how much interest a company can legally write off each year.
The plan would help companies that spend a lot of money on expensive equipment, buildings, or tools. Currently, those costs can limit a company's ability to get a tax break on their interest payments.
By allowing these deductions, the bill aims to make it cheaper for businesses to borrow money. This could lead to more spending on new factories, machinery, and other large projects.
If it becomes law, the new rules would start for the 2026 tax year. This would undo a recent change that increased the tax burden for many American manufacturers and builders.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

2 milestones2 actions

Mar 26, 2026Senate

Read twice and referred to the Committee on Finance.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Mar 26, 2026

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

No votes or news coverage recorded for this bill yet.

Source Information

Document Type

Congressional Bill

Official Title

Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Bill NumberS 4221

Congress119th Congress

ChamberSenate

Latest ActionRead twice and referred to the Committee on Finance.

Data Sources

Congress.gov

Official legislative information

Read Full Bill Text

Sponsor

Cosponsors

(6)

R: 6

Analysis generated by AI. Always verify with official sources.