H.R. 8101, Corporate Interest Deduction Expansion. Quorum's AI analysis reads it as a trade-off: gains for some, costs for others.
H.R. 8101 · Mixed
What it does
This bill reverses a prior restriction on how much interest expense businesses can deduct from their taxes by restoring the more generous EBITDA-based formula under tax code Section 163(j). Under the older, more favorable rule, companies could deduct more interest because depreciation and amortization were added back into the income calculation — a significant advantage for debt-heavy businesses. The primary beneficiaries are large, highly leveraged corporations, private equity-backed companies, and capital-intensive industries that carry substantial debt loads.
The analysis names highly leveraged corporations — and 5 more groups — among the beneficiaries.
The trade-off
Restoring EBITDA-based ATI calculation allows companies to deduct significantly more interest expense, reducing federal tax receipts without offsetting revenue measures or explicit reauthorization sunset dates.
The analysis put a high warning level on this bill. Transparency scores 35%; no detached riders.
Who is behind it
Filed by Ron Estes. Cosponsored by Aaron Bean, Adrian Smith, August Pfluger and Beth Van Duyne.
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