AIMM Act

This bill would change how businesses figure out how much loan interest they can deduct on their taxes. It would permanently let them count certain non-cash costs—like equipment wear-and-tear (depreciation), write-offs of intangible assets (amortization), and natural resource drawdown (depletion)—when calculating the income limit on that interest deduction. This generally means some businesses could deduct more of their interest costs and lower their taxable income.

The change would apply to tax years starting in 2022 and after.

• Who is affected: Businesses that pay interest on loans and claim business interest deductions.
• What changes: Permanently allows counting depreciation, amortization, or depletion when figuring the income limit for the business interest deduction.
• When: Applies to taxable years beginning after December 31, 2021.