# 119-s-4221: Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

119-s-4221, Ensuring Better Interest Treatment and Deductibility Act (EBITDA), is a 119th Congress bill sponsored by Sen. Capito, Shelley Moore [R-WV] (R-WV); status introduced; PRIA reads it as touching household money (as of 2026-07-23).

- Canonical: https://policyrisk.com/legislation/119-s-4221
- As of: 2026-07-23
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-4221
- Congress: 119
- Title: Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
- Status: introduced
- Introduced: 2026-03-26
- Sponsor: Sen. Capito, Shelley Moore [R-WV] (R-WV)
- Cosponsors: 8
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-07-23

## 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. - 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.

## Cosponsors (8)

- Sen. Cornyn, John [R-TX] (R-TX), 2026-03-26T00:00:00.000Z
- Sen. Blackburn, Marsha [R-TN] (R-TN), 2026-03-26T00:00:00.000Z
- Sen. Husted, Jon [R-OH] (R-OH), 2026-03-26T00:00:00.000Z
- Sen. Boozman, John [R-AR] (R-AR), 2026-06-09T00:00:00.000Z
- Sen. Moran, Jerry [R-KS] (R-KS), 2026-06-18T00:00:00.000Z
- Sen. McCormick, David [R-PA] (R-PA), 2026-06-24T00:00:00.000Z
- Sen. Hyde-Smith, Cindy [R-MS] (R-MS), 2026-07-16T00:00:00.000Z
- Sen. Cruz, Ted [R-TX] (R-TX), 2026-07-21T00:00:00.000Z

## Provisions PRIA read

- Larger interest deductions for businesses: benefit, high. 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…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-5526: Agricultural Act of 2026
- 119-s-3752: SAVE America Act
- 119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026
- 119-s-1241: Sanctioning Russia Act of 2025
- 119-s-401: Fair Access to Banking Act

## Sources
- [119-s-4221 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4221)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-5526: Agricultural Act of 2026](https://policyrisk.com/legislation/119-s-5526)
- [119-s-3752: SAVE America Act](https://policyrisk.com/legislation/119-s-3752)
- [119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026](https://policyrisk.com/legislation/119-s-5025)
- [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241)
- [119-s-401: Fair Access to Banking Act](https://policyrisk.com/legislation/119-s-401)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-4221 (as of 2026-07-23).