Bill · S. 4221· Senate(119-S-4221)

Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

Age: 73 years

West Virginia

Introduced: 3/26/2026
Last activity: 3/26/2026 — Read twice and referred to the Committee on Finance.
Sponsored by: Shelley Capito
Cosponsors: - 8 - 0

Taxation

Introduced
In Committee

What this bill would do

This bill, titled the "Ensuring Better Interest Treatment and Deductibility Act (EBITDA)", aims to amend the Internal Revenue Code of 1986. It specifically targets the modification of the definition of adjusted taxable income used for the limitation on business interest. The legislation seeks to repeal a specific modification introduced by Public Law 119-21. This change involves inserting the word "and" at the end of clause (iv) and striking clause (vi) of Section 163(j)(8)(A). The amendments are intended to apply to taxable years beginning after December 31, 2025.

Yes· 3 of 6

Does this cut taxes for small businesses?+5
By repealing the modification to the adjusted taxable income definition, the bill allows for more favorable business interest deductibility for certain entities.
Does this make it easier to run a small business?+5
The bill eases the limitation on how much business interest can be deducted against taxable income.
Would business owners be better off under this?+5
The legislation directly targets and eases restrictions on business interest deductibility.