Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4221 Introduced in Senate (IS)]

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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.

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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

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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>