H.R. 8101 — Ensuring Better Interest Treatment and Deductibility Act (EBITDA)

This section repeals a modification made by Public Law 119-21 to the definition of adjusted taxable income for purposes of the business interest deduction limitation under IRC §163(j) by striking clause (vi) of §163(j)(8)(A). The repeal applies to taxable years beginning after December 31, 2025. (As background, §163(j) limits deductions for business interest expense to 30% of adjusted taxable income—generally computed as taxable income excluding net operating loss deductions and with certain adjustments—plus business interest income and floor plan financing interest expense.)