It’s time to restore American investment.

By restoring interest deductibility, Congress can encourage U.S. businesses to invest in growth and American workforces.

Restoring the pro-growth EBITDA standard in §163(j) will ensure the U.S. can achieve its full economic potential by unleashing the funding that powers the investments that create American jobs and drive economic growth.

THE PROBLEM

Nearly 100 years of precedent was set aside in 2022 when the interest deductibility cap’s standard changed from EBITDA to EBIT. By excluding “DA” (Depreciation and Amortization), a stricter EBIT standard made it far more costly – and even unaffordable – for U.S. job creators to borrow the money they need to be able to grow.

We shouldn’t be making it harder for companies to raise capital, hire new workers, and expand – especially in today’s environment of elevated interest rates – but the current EBIT standard does just that.

THE IMPACT

The new EBIT standard hurts capital-intensive industries most – those businesses that rely on financing to expand and make the long-term investments that power our economy and create U.S. jobs.

77% of the negative impact of the EBIT standard is borne by the manufacturing, information, transportation, and mining sectors.
According to January 2025 data from the U.S. Bureau of Labor Statistics, these critical industries employ 23 million U.S. workers in good-paying jobs in communities of all types from coast to coast.

The Stricter EBIT Standard Drives Up the Cost of New Investment – and that Means Less Investment, Less Economic Growth, and Fewer Jobs

According to a PwC Economic Analysis “The increase in the after-tax cost of capital caused by the EBIT-based cap is likely to reduce investment. With lower capital investment, economic growth and average labor productivity are reduced.”

An EBIT-Based Cap Creates a Global Competitive Disadvantage for the U.S. in Attracting New Investment

Of 35 countries with an earnings-based interest limitation, the U.S. is the only one using the lower, EBIT-based cap, which creates a disadvantage in attracting new investment. And with less favorable interest deductibility in the U.S., businesses may look overseas for their borrowing needs, which weakens our capital markets and further hinders job growth.

THE Solution

We need to ensure U.S. businesses can borrow the money they need to hire new workers and grow.

Restoring the pro-growth EBITDA standard in §163(j) will ensure the U.S. can achieve its full economic potential by unleashing the funding that powers the investments that create American jobs and drive economic growth.

OUR COALITION SUPPORTERS

We are an ad hoc, broad-based group of organizations making and supporting the long-term, capital-intensive investments that power the U.S. economy and create American jobs.

Resources

RAIN Coalition Praises U.S. Senate for Restoring EBITDA Standard in Tax Bill

July 1, 2025

The Restore American Investment Now Coalition today released the following statement on Senate passage of the One Big Beautiful Bill Act which permanently restores the

RAIN Coalition Applauds Business Community’s Call to Permanently Restore EBITDA Standard in U.S. Tax Code

June 4, 2025

The Restore American Investment Now (RAIN) Coalition applauds the over 30 major industry organizations – representing hundreds of entities – for urging Senate leadership to permanently restore the EBITDA standard for business interest deductions.

Letter from the RAIN Coalition to Members of Congress: Support For Reinstating the EBITDA Standard for Business Interest Deductions

June 4, 2025

We, the undersigned companies and associations write in strong support of reinstating the earnings before interest, tax, depreciation, and amortization (EBITDA) standard for business interest deductions. Beginning in 2022, this standard shifted to the less favorable earnings before interest and tax (EBIT) standard, making it harder for U.S. job creators to raise capital, hire new workers, and grow.