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

Progress

Timeline

• Mar 26Read twice and referred to the Committee on Finance.

Summary

**What it does:** This bill would change tax rules for businesses by repealing a modification to how "adjusted taxable income" is calculated when determining limits on business interest deductions. **Who it affects:** - Businesses that deduct interest expenses on loans and debt - Companies that were impacted by previous changes to interest deduction limits - Primarily affects larger businesses with significant debt financing **What would change:** The bill would restore an earlier method of calculating adjusted taxable income for the purpose of limiting how much interest businesses can deduct from their taxes. This change would likely make it easier for some businesses to deduct interest expenses, potentially reducing their tax burden. The modification being repealed was part of previous tax law changes that made interest deductions more restrictive for certain businesses. **Current status:** The bill is currently under review in a Senate committee and has not yet been voted on by the full Senate.

How This Affects You