Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
Sponsored By: Representative Estes
Introduced
Summary
Restores the pre-PL 119-21 definition of adjusted taxable income for the Section 163(j) business interest limit. This bill would repeal the change made by Public Law 119-21 and make the prior-law adjusted taxable income apply for taxable years beginning after Dec 31, 2025.
Show full summary
- Businesses: Changes the formula used to limit deductible business interest. The allowed interest deduction may rise or fall depending on how the old definition applied to a taxpayer.
- Tax preparers and advisers: Requires using the prior-law adjusted taxable income when calculating Section 163(j) limits for tax years starting after Dec 31, 2025. That will affect tax planning and return calculations.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Changes to business interest deduction
This bill would repeal a recent change to how "adjusted taxable income" is defined for the business interest limit. It would restore the prior definition used to compute the Section 163(j) deductible interest. The change would apply to tax years beginning after December 31, 2025. Some businesses would be able to deduct more interest and others would deduct less, depending on their situation.
Sponsors & CoSponsors
Sponsor
Estes
KS • R
Cosponsors
Rep. Smith, Adrian [R-NE-3]
NE • R
Sponsored 3/26/2026
Hern (OK)
OK • R
Sponsored 3/26/2026
Kustoff
TN • R
Sponsored 3/26/2026
Rep. Moore, Blake D. [R-UT-1]
UT • R
Sponsored 3/26/2026
Feenstra
IA • R
Sponsored 3/26/2026
Rep. Miller, Carol D. [R-WV-1]
WV • R
Sponsored 3/26/2026
Rep. Miller, Max L. [R-OH-7]
OH • R
Sponsored 3/26/2026
Rep. Moran, Nathaniel [R-TX-1]
TX • R
Sponsored 3/26/2026
Rep. Arrington, Jodey C. [R-TX-19]
TX • R
Sponsored 3/26/2026
LaHood
IL • R
Sponsored 3/26/2026
Buchanan
FL • R
Sponsored 3/26/2026
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 3/26/2026
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 4/9/2026
Rep. Yakym, Rudy [R-IN-2]
IN • R
Sponsored 4/14/2026
Van Duyne
TX • R
Sponsored 5/13/2026
Roll Call Votes
No roll call votes available for this bill.
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