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Referred to the House Committee on Ways and Means.
Introduced February 13, 2025 by Adrian Smith · Last progress February 13, 2025
Permanently allows businesses to exclude depreciation, amortization, and depletion when calculating the limit on deductible business interest under the Internal Revenue Code. The change makes the more generous EBITDA-style measure permanent for taxable years beginning after December 31, 2021, which increases the amount of interest many capital‑intensive businesses can deduct.
The provision primarily affects businesses that are subject to the IRC §163(j) interest limitation (typically larger and capital‑intensive firms), reduces federal tax revenue compared with the post‑2021 rule that included depreciation in the base, and will affect tax planning, return calculations, and IRS guidance for tax years starting in 2022 and later.
