Bills · S 4221
IN COMMITTEE· 119TH CONGRESS
Senate BillS 4221Taxation
Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
This bill lets businesses use a more generous formula to calculate how much loan interest they can deduct from their taxes, specifically helping companies that invest heavily in equipment and machinery.AI-written
INTRO MAR 26· LAST ACTION MAR 26
READING
1MIN
COSPONSORS
8
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
tl;dr
AI-writtenAllows businesses to deduct more of their loan interest from their taxes by including equipment depreciation in their income calculations, lowering the cost of borrowing for manufacturers and builders.
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it directly impacts the cost of doing business in the United States for industries that build things. If it becomes law, it will be significantly cheaper for a car manufacturer to build a new assembly line or for an internet provider to lay new fiber-optic cables. This can lead to increased industrial investment and job creation in those sectors.
On the other hand, if this bill doesn't pass, these companies will continue to face higher tax bills on their debt, which critics argue makes American industry less competitive. However, passing the bill would also mean the federal government collects less in corporate tax revenue, which could increase the national deficit. Voters care about this because it balances the desire for domestic industrial growth against the need for tax revenue to fund public services.
KEY PROVISIONS
3AI-extractedPROVISION 01
Repeals the requirement to exclude depreciation and amortization from adjusted taxable income.
This is the core change that allows businesses to use the 'EBITDA' standard, resulting in higher allowed interest deductions.
PROVISION 02
Amends Section 163(j) of the Internal Revenue Code.
This specifically targets the part of the tax code that regulates how much interest a business can deduct relative to its earnings.
PROVISION 03
Sets an effective date for tax years beginning after December 31, 2025.
This ensures that businesses can begin applying the more favorable tax treatment to their next full tax cycle.
SPONSORSHIP
1 + 8
R· West Virginia
YRS IN OFFICE
25
BILLS LED
28
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 8 IND 0
ACTION TIMELINE
2 EVENTSMAR 26
Introduced in Senate
MAR 26
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 4221
Congress119th
StatusIn Committee
IntroducedMar 26, 2026
Last actionMar 26, 2026
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED MAR 26, 2026
Senate BillS 4221Taxation
Ensuring Better Interest Treatment and Deductibility Act (EBITDA)
This bill lets businesses use a more generous formula to calculate how much loan interest they can deduct from their taxes, specifically helping companies that invest heavily in equipment and machinery.AI-written
INTRODUCED MAR 26, 2026· LAST ACTION MAR 26, 2026
PASSAGE CHANCES
—%
READING
1 min
COSPONSORS
8
COMPLEXITY
Moderate
