S. 4221 — 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). (As background, §163(j) limits business interest deductions to 30% of adjusted taxable income plus business interest income and floor plan financing interest.) The repeal applies to taxable years beginning after December 31, 2025.