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End TCJA’s Strict Limitation on Deductibility of Business Interest Expense 

The Tax Cuts and Jobs Act (TCJA) amended Internal Revenue Code Section 163(j) to create a strict limitation on the deductibility of interest payments on business loans. As a result of the TCJA, and prior to 2022, businesses’ interest expense deductions had been limited to 30% of earnings before interest, tax, depreciation, and amortization (EBITDA). Starting in 2022, interest deductions are limited to 30% of earnings before interest and tax (EBIT).

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About the Author
American Chemistry Council

The American Chemistry Council’s mission is to advocate for the people, policy, and products of chemistry that make the United States the global leader in innovation and manufacturing. To achieve this, we: Champion science-based policy solutions across all levels of government; Drive continuous performance improvement to protect employees and communities through Responsible Care®; Foster the development of sustainability practices throughout ACC member companies; and Communicate authentically with communities about challenges and solutions for a safer, healthier and more sustainable way of life. Our vision is a world made better by chemistry, where people live happier, healthier, and more prosperous lives, safely and sustainably—for generations to come.