New rules for business interest deductions
This bill would change how businesses figure out their taxable income. This matters when they deduct interest paid on business loans. It would get rid of a specific rule that currently changes this calculation. The new rules would start for tax years beginning after December 31, 2025.
Today, businesses must use a specific modified definition of adjusted taxable income. This applies when they calculate their limit on business interest deductions. If this bill becomes law, that specific modification would be removed. Businesses would use a different calculation for their adjusted taxable income. This could change how much business interest they can deduct on their taxes.
S 4221 · 119th Congress · March 26, 2026 · AI Summary by gemini-2.5-flash · 10/10
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