S. 4221

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4221 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4221

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.

_______________________________________________________________________

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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.
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