Congress makes permanent a business tax deduction, no offset.

What it does

This bill makes permanent a tax rule that allows businesses to deduct depreciation, amortization, and depletion when calculating limits on how much business interest they can deduct. The rule was set to expire after 2021; this bill removes that expiration date, letting businesses use this deduction indefinitely going forward.

Why we flagged it

The bill's sole operative mechanism is to make permanent a business tax deduction that was scheduled to sunset. It is a straightforward tax-code amendment benefiting capital-intensive businesses, with no public-interest framing or offsetting revenue measure.

What the text implies

• The bill does not specify which industries or business sizes benefit most; capital-intensive sectors (manufacturing, real estate, energy) will capture disproportionate value relative to service or labor-intensive businesses.
• No revenue offset or pay-for is included; the permanent extension increases the federal deficit unless offset elsewhere in the budget.
• The effective date (taxable years after Dec. 31, 2021) means the bill retroactively codifies what was already in effect; the true cost is the permanent loss of future revenue that would have been collected after the original 2021 sunset.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill permanently extends a tax deduction that reduces business tax liability without a corresponding public benefit or revenue offset. The cost is borne by the general taxpayer base, which must compensate for foregone federal revenue. Businesses—particularly capital-intensive ones—are the primary beneficiaries.

Who stands to gain

• capital-intensive businesses (manufacturing, real estate, energy, infrastructure)
• large corporations with significant depreciation/amortization schedules
• private equity and real estate investment firms

Named in the bill

Internal Revenue Code Section 163(j), U.S. Department of Treasury, Senate Committee on Finance

Where it stands

• Feb 13, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Feb 13, 2025 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

18 lobbying clients named this bill on 21 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $23,090,000 in lobbying spend. A filing names 8 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 96% of bills with at least one filing.

Shelley Capito, the sponsor, reported $2,001,091 in PAC receipts in the 2026 cycle. $21,500 of that came from 4 PACs tied to these lobbying clients.

• Chamber of Commerce of the U.S.A. — $17,960,000 on 1 filing
• Charter Communications Inc — $2,570,000 on 1 filing
• Stanley Black & Decker — $820,000 on 1 filing
• Case New Holland Industrial Inc — $680,000 on 2 filings
• Tax Reform Coalition — $250,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.