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119-s-4221119th CongressWALLET

Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Sponsored By: Senator Capito, Shelley Moore [R-WV]

Introduced

Summary

Restores the prior definition of adjusted taxable income used to limit business interest under Section 163(j). This bill would repeal the modification made by Public Law 119-21 and make the restored definition apply to taxable years beginning after December 31, 2025.

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  • Businesses: Would change how the Section 163(j) interest limitation is calculated, potentially altering how much interest companies can deduct, especially for firms with large interest expenses.
  • Tax preparers and accountants: Would require returns for tax years starting after Dec. 31, 2025 to use the restored definition, so tax calculations and planning practices would need to adjust.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Larger interest deductions for businesses

This bill would repeal a recent change to the definition of "adjusted taxable income" used to limit business interest deductions under section 163(j). If enacted, this would restore the prior definition and would let businesses subject to that limit deduct more interest than under the modification made by P.L. 119-21. The change would apply to taxable years beginning after December 31, 2025. The biggest effects would fall on businesses, investors, and owners whose interest deductions are limited by section 163(j).

Sponsors & CoSponsors

Sponsor

Capito, Shelley Moore [R-WV]

WV • R

Cosponsors

  • Sen. Cornyn, John [R-TX]

    TX • R

    Sponsored 3/26/2026

  • Sen. Blackburn, Marsha [R-TN]

    TN • R

    Sponsored 3/26/2026

  • Sen. Husted, Jon [R-OH]

    OH • R

    Sponsored 3/26/2026

  • Sen. Boozman, John [R-AR]

    AR • R

    Sponsored 6/9/2026

  • Sen. Moran, Jerry [R-KS]

    KS • R

    Sponsored 6/18/2026

  • Sen. McCormick, David [R-PA]

    PA • R

    Sponsored 6/24/2026

  • Sen. Hyde-Smith, Cindy [R-MS]

    MS • R

    Sponsored 7/16/2026

  • Sen. Cruz, Ted [R-TX]

    TX • R

    Sponsored 7/21/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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