WASHINGTON, D.C. (WVDN) – U.S. Senator Shelley Moore Capito (R-W.Va.) recently introduced the American Investment in Manufacturing and Main Street (AIMM) Act, legislation that would reinstate the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) measure, supporting a competitive tax code for American job creators and businesses. Reinstating EBITDA will make it easier for capital-intensive companies to raise capital or obtain financing, protect U.S. jobs and wages, and strengthen global competition.
“After years of sustained inflation, high interest rates, and increased taxes burdening U.S. businesses due in part to the failed policies of the Biden administration, additional limitations jeopardize American manufacturers, retailers, and service providers’ ability to compete across global markets. This legislation would reinstate a needed measure to encourage industrial growth, increase jobs and wages at all levels, and contribute to America’s economy. I’m proud to support American workers and businesses by leading the introduction of this legislation, and I encourage my colleagues to join me in this effort,” Senator Capito said.
Companion legislation was introduced in the U.S. House of Representatives by U.S. Reps. Adrian Smith (R-Neb.-03), Joe Morelle (D-N.Y.-25), Kevin Hern (R-Okla.-01), and Brad Schneider (D-Ill.-10).
BACKGROUND:
Prior to 2022, businesses could deduct 30% of its EBITDA. A new limitation that went into effect would limit the deduction to only EBIT. This change is an added cost to businesses environment in the U.S. and could harm global competition. This restriction harms a wide range of industries including – but not limited to – American manufacturers, broadband providers, healthcare systems, and restaurants. Without this change, businesses will on average see close to a threefold increase in their incremental tax obligations
The legislation has been endorsed by: The National Association of Manufacturers, Business Roundtable, Global Business Alliance, RAIN Coalition, Association of Equipment Manufacturers, West Virginia Manufacturers Association, Rural Broadband Association (NTCA), Americans for Tax Reform, Inspire Brands, National Restaurant Association, American Petroleum Institute, National Taxpayers Union, Novelis, and Charter Communications.
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Click here for full text of the legislation.
