Chamber Letter to Congressional Delegation: Preserve the Federal EBITDA Standard for Business Interest Deductions
This week, the Illinois Chamber sent a letter to members of the Illinois congressional delegation in support of the EBITDA standard for business interest deductions. The Illinois Chamber joins the US Chamber and the National Association of Manufacturers in their effort to ensure that Permanently Preserving America’s Investment in Manufacturing Act (S. 1077/H.R. 5371), is passed to permanently preserve an EBITDA standard.
S.1077/H.R. 5371 would preserve current law for interest deductibility, permanently protecting the current EBITDA standard and ensuring that job creators across the country are not hit with increased financing costs and reduced liquidity as they work to recover from the economic damage caused by COVID-19.
In part, the letter says the following:
As you are likely aware, current law limits businesses’ interest expense deductions to 30% of earnings before interest, tax, depreciation, and amortization (EBITDA) for tax years through 2021. Starting in 2022, interest deductions will be limited to 30% of earnings before interest and tax (EBIT). By excluding depreciation and amortization, the stricter EBIT standard will make it more expensive for capital-intensive companies to finance critical purchases and grow their businesses.
The industries most impacted by the change from EBITDA to EBIT are critical to the Illinois and U.S. economy: the information and manufacturing industries will pay the most in new tax obligations under an EBIT standard, while accommodation and food services (3,462%), mining (2,840%), and transportation and warehousing (2,531%) will experience the greatest tax increases.
The Illinois Chamber reached out to our Congressional Delegation to ask for their support on this important measure. We encourage any business that would be impacted by this change to do the same.
For more information on this issue, check out this great 1-pager by our friends at the Coalition for America's Interest.
Read our full letter to the Congressional Delegation here.
Thompson Op-Ed: Local Properties Should Not Serve as Politicians' Purse Strings
Kelly Thompson, Project Manager with the Illinois Environmental Regulatory Group, penned an op-ed in The State Journal-Register about thousands of property owners in Sangamon County, herself included, paying higher property taxes due to the annexation of their property.
Thompson writes, "The process for this annexation or addition of properties, written into law is skewed and doesn’t allow for the proposed property owners to have the ability to oppose or fight the annexation before it goes to a vote.”
Read the full article here.
