Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
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.
SB4221, known as the Ensuring Better Interest Treatment and Deductibility Act (EBITDA), aims to change how businesses can deduct interest expenses from their taxable income. Specifically, it seeks to repeal changes made to the definition of adjusted taxable income under the Internal Revenue Code of 1986. This could allow businesses to deduct more of their interest expenses, potentially reducing their tax liability.
This bill would mainly affect businesses, especially those with higher debt levels, by making it easier for them to deduct interest payments from their taxable income. This could result in significant tax savings for these companies, influencing their financial decisions and potentially impacting their investment and growth strategies.
As of March 26, 2026, SB4221 was introduced and referred to the Senate Committee on Finance for further review. This is the latest update on its status, and it has not yet moved beyond the referral stage. Constituents interested in the bill's progress should monitor the committee's actions for further developments.
