Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
Sponsored By: Representative Estes
Introduced
Summary
Restores the pre-2025 definition of adjusted taxable income used to limit business interest deductions under section 163(j). It removes the change made by Public Law 119-21 so the earlier calculation applies for taxable years beginning after December 31, 2025.
Show full summary
- Businesses that claim the business interest deduction will revert to the prior adjusted taxable income formula, changing how much interest can be deducted for tax years starting in 2026.
- Tax preparers and corporate accountants will need to use the restored calculation when applying the section 163(j) limitation for affected tax years.
- The measure only changes the statutory definition and does not create new programs, funding, or regulatory enforcement mechanisms.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Restore prior interest deduction rules
This bill would repeal a recent change to how "adjusted taxable income" is calculated for the business interest limit. If enacted, it would restore the pre-Public Law 119-21 definition used to compute the section 163(j) business interest deduction. The change would apply to taxable years beginning after December 31, 2025. That could let corporations, partnerships, and pass-through businesses deduct more interest and lower their taxable income, reducing taxes for affected owners.
Sponsors & CoSponsors
Sponsor
Estes
KS • R
Cosponsors
Smith (NE)
NE • R
Sponsored 3/26/2026
Hern (OK)
OK • R
Sponsored 3/26/2026
Kustoff
TN • R
Sponsored 3/26/2026
Moore (UT)
UT • R
Sponsored 3/26/2026
Feenstra
IA • R
Sponsored 3/26/2026
Miller (WV)
WV • R
Sponsored 3/26/2026
Miller (OH)
OH • R
Sponsored 3/26/2026
Moran
TX • R
Sponsored 3/26/2026
Arrington
TX • R
Sponsored 3/26/2026
LaHood
IL • R
Sponsored 3/26/2026
Buchanan
FL • R
Sponsored 3/26/2026
Tenney
NY • R
Sponsored 3/26/2026
Roll Call Votes
No roll call votes available for this bill.
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