Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Progress

Timeline

• Mar 26Referred to the House Committee on Ways and Means.

Summary

The EBITDA Act (HR 8101) would change how businesses calculate tax deductions for interest payments on loans and debt. **What it does:** The bill would restore or expand businesses' ability to deduct interest expenses from their taxable income, potentially reversing limitations that were previously enacted. **Who it affects:** - Businesses of all sizes that carry debt or pay interest on loans - Companies that currently face restrictions on deducting interest payments - The federal government (through potential tax revenue changes) **What would change:** - Businesses could potentially deduct more of their interest expenses, reducing their taxable income - Companies might have lower tax bills, freeing up more cash for operations or investments - Federal tax revenue could decrease depending on how many businesses benefit - The change could make it more attractive for businesses to finance operations or expansion through debt The bill is currently under review in congressional committee and has not yet been voted on by the full House.

How This Affects You