Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
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.
The Ensuring Better Interest Treatment and Deductibility Act (EBITDA) proposes changes to the Internal Revenue Code to remove the current modification of the definition of adjusted taxable income for businesses. This would affect businesses by potentially allowing them to deduct more of their interest expenses when calculating their taxable income. This bill was introduced on March 26, 2026, and has been referred to the House Committee on Ways and Means for further consideration. This committee will review the bill and may suggest changes before it goes to a vote in the House.
The bill is sponsored by several Republican representatives, including Ron Estes as the primary sponsor, and aims to provide better tax treatment for business interest. If passed, it could help businesses reduce their tax liability by increasing the deductibility of interest expenses. Currently, the bill is in its early stages, having been introduced and referred to the appropriate committee for detailed examination.
The key action so far is the introduction of the bill and its referral to the House Committee on Ways and Means. The committee will analyze the bill's implications and may hold hearings or mark up the bill before deciding its next steps. This process is crucial in determining how the bill might evolve and ultimately impact businesses and their tax deductions.
