hold on there's just too much going on in Congress lmao...
Reverts a tax rule, allowing businesses to deduct more interest.
Introduced by Rep. Estes (R-KS) with 12 Republican co-sponsors.
Introduced in the House, referred to committee.
This bill proposes to change a section of the tax code (163(j)(8)(A)) that limits how much business interest companies can deduct. Specifically, it aims to reverse a 2022 modification, allowing businesses to use a more favorable calculation method (EBITDA) for this limit, which generally results in higher deductions. The bill was introduced by Representative Ron Estes, a Republican from Kansas, who serves on the House Ways and Means Committee. It is currently under review by this committee, meaning no vote has occurred yet.
Introduced Mar 26, 2026
The bill was introduced in the House of Representatives on March 26, 2026. It has been referred to the House Committee on Ways and Means, which is responsible for tax legislation. For the bill to proceed, the committee must consider and approve it, potentially with amendments. After committee approval, it would need to pass a vote in the full House of Representatives, then the Senate, and finally be signed by the President to become law.
If passed, businesses, especially those with significant assets that depreciate (like manufacturing or real estate), could deduct more of their interest expenses from their taxable income starting in 2026. This change would likely reduce their overall tax burden, potentially freeing up capital for reinvestment, expansion, or job creation. By making debt financing more tax-efficient, the bill could subtly influence business decisions regarding borrowing for growth or operational needs.
Supporters Say
Supporters argue it helps businesses invest and grow by reducing their tax burden on interest expenses.
Critics Say
Critics might raise concerns about its impact on government revenue or potential benefits to highly leveraged companies.
Those in favor of the bill would likely emphasize that restoring the previous, more generous interest deduction calculation method (EBITDA) supports economic growth and competitiveness, especially for capital-intensive industries. They might argue that the prior change (to EBIT) unfairly penalized businesses that rely on significant investments in equipment or infrastructure. Concerns could be raised by those who believe the current rules are necessary to curb excessive corporate debt or to maintain government tax revenue, which could be reduced by increased deductions.