II
119th CONGRESS
2d Session
S. 4221
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
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.
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.