Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Shelley Moore Capito

Republican · WV · Senator

Source: Congress.gov · FEC

• John Cornyn (R-TX)Original· 2026-03-26
• Jon Husted (R-OH)Original· 2026-03-26
• Marsha Blackburn (R-TN)Original· 2026-03-26

Read twice and referred to the Committee on Finance.

2026-03-26

Source: Congress.gov

This bill would change how businesses calculate their taxable income by adjusting rules around interest deductions and earnings calculations, potentially allowing some companies to deduct more interest expenses on their taxes. The changes would affect how corporations and large businesses report their profits to the IRS, which could reduce the taxes they owe or increase the taxes some pay depending on their specific financial situation.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4221 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4221 To amend the Internal Revenue Code of 1986 to repeal the modification of the definition of adjusted taxable income for purposes of the limitation on business interest. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES March 26, 2026 Mrs. Capito (for herself, Mr. Cornyn, Mrs. Blackburn, and Mr. Husted) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to repeal the modification of the definition of adjusted taxable income for purposes of the limitation on business interest. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Ensuring Better Interest Treatment and Deductibility Act (EBITDA)''. SEC. 2. REPEAL OF MODIFICATION TO DEFINITION OF ADJUSTED TAXABLE INCOME FOR PURPOSES OF THE LIMITATION ON BUSINESS INTEREST. (a) In General.--Section 163(j)(8)(A) of the Internal Revenue Code of 1986, as amended by Public Law 119-21, is amended by inserting ``and'' at the end of clause (iv) and by striking clause (vi). (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. <all>

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