❯Interest Deductibility Drives Manufacturing Investment
Manufacturers depend on a competitive tax code that supports investment in new facilities, equipment, jobs and growth.
Congress delivered with H.R. 1 and should build on that success by passing the Ensuring Better Interest Treatment and Deductibility Act.
Manufacturing Is Capital-Intensive
Manufacturers invest for the long term.
Building a new facility, expanding a production line, purchasing advanced equipment and modernizing operations all require significant capital. Manufacturers often rely on debt financing to make those investments possible.
The tax treatment of business interest directly affects the cost of financing. When interest deductions are excessively limited, it becomes more expensive for manufacturers to borrow, invest and grow.
A globally competitive interest deduction helps manufacturers put capital to work, supporting new facilities, stronger supply chains, modern equipment and good-paying jobs.
Congress Should
Pass the EBITDA Act
The Ensuring Better Interest Treatment and Deductibility (EBITDA) Act would build on recent improvements to the interest deduction by updating the definition of adjusted taxable income used to calculate the deduction.
The legislation would address a remaining limitation that can penalize U.S. businesses for past borrowing.
Passing the EBITDA Act would help ensure that the tax code supports manufacturers’ global competitiveness.
Interest deductibility supports manufacturing competitiveness. Pass the EBITDA Act.
View the Legislation ›❯Why Interest Deductibility Matters
Manufacturers Borrow to Invest
Manufacturers use financing to build and expand facilities, purchase equipment, increase production capacity and modernize their operations.
Tax Policy Affects Financing Costs
The amount of interest a company may deduct affects the overall cost of borrowing. A more restrictive limitation can make otherwise productive investments more expensive.
Investment Supports Growth
Competitive interest deductibility helps manufacturers direct more resources toward equipment, facilities, workers, innovation and supply-chain capacity.
The EBITDA Act Provides a Solution
The EBITDA Act would address an existing limitation in the tax code and support manufacturers’ ability to compete globally.
A Tax Code That Supports
Global Competitiveness
America’s manufacturers compete against companies around the world while supporting jobs, investment and supply chains here at home.
The EBITDA Act would address a remaining issue in the business interest deduction by ensuring that adjusted taxable income more accurately reflects the income of U.S. companies with global operations. This would help prevent unintended tax consequences that can put American manufacturers at a competitive disadvantage.
By building on the pro-growth reforms enacted in H.R. 1, the EBITDA Act would strengthen the ability of U.S. manufacturers to compete globally, expand their operations and support economic growth at home.
A competitive interest deduction would help manufacturers:
- Build and expand production facilities
- Purchase and install new machinery
- Modernize operations and adopt advanced technologies
- Strengthen domestic supply chains
- Support employees and create jobs
- Compete more effectively in the global economy
Support Manufacturing Investment in America
America’s manufacturers are ready to build, hire, modernize and grow.
Congress can build on the success of H.R. 1 by addressing the remaining limitation in the business interest deduction and strengthening manufacturers’ ability to compete globally.
EBITDA ACT.
❯Tell Congress: Pass the EBITDA Act
Members of Congress need to hear from the manufacturing community. Add your name and we will connect your support for the EBITDA Act with your member of Congress.
Your voice helps demonstrate the broad support for interest deductibility and manufacturing investment in America.
