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HR8101119th CongressWALLET

Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Sponsored By: Representative Estes, Ron [R-KS-4]

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, Ron [R-KS-4]

KS • R

Cosponsors

  • Rep. Smith, Adrian [R-NE-3]

    NE • R

    Sponsored 3/26/2026

  • Rep. Hern, Kevin [R-OK-1]

    OK • R

    Sponsored 3/26/2026

  • Rep. Kustoff, David [R-TN-8]

    TN • R

    Sponsored 3/26/2026

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 3/26/2026

  • Rep. Feenstra, Randy [R-IA-4]

    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

  • Rep. LaHood, Darin [R-IL-16]

    IL • R

    Sponsored 3/26/2026

  • Rep. Buchanan, Vern [R-FL-16]

    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

  • Rep. Van Duyne, Beth [R-TX-24]

    TX • R

    Sponsored 5/13/2026

  • Rep. Moolenaar, John R. [R-MI-2]

    MI • R

    Sponsored 6/8/2026

  • Rep. Pfluger, August [R-TX-11]

    TX • R

    Sponsored 6/9/2026

  • Rep. Fischbach, Michelle [R-MN-7]

    MN • R

    Sponsored 6/23/2026

  • Rep. Murphy, Gregory F. [R-NC-3]

    NC • R

    Sponsored 6/24/2026

  • Rep. Bean, Aaron [R-FL-4]

    FL • R

    Sponsored 7/27/2026

  • Rep. Moore, Tim [R-NC-14]

    NC • R

    Sponsored 8/13/2026

  • Rep. Sessions, Pete [R-TX-17]

    TX • R

    Sponsored 9/1/2026

  • Rep. Self, Keith [R-TX-3]

    TX • R

    Sponsored 9/16/2026

Roll Call Votes

No roll call votes available for this bill.

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