EBITDA Year End Letter 2022


December 13, 2022


Dear Chairman Wyden, Chairman Neal, Ranking Member Crapo, and Ranking Member Brady:

The undersigned companies and associations write in strong support of re-instating the EBITDA standard for business interest deductions. Debt financing plays an important role in supporting job-creating investments, but a stricter limitation on the deductibility of interest payments on business loans took effect at the beginning of 2022.

Prior to January 1, 2022, businesses’ interest expense deductions were limited by section 163(j) to 30% of their earnings before interest, tax, depreciation, and amortization (EBITDA). Interest deductions are now limited to 30% of earnings before interest and tax (EBIT). By excluding depreciation and amortization, the stricter EBIT standard makes it more expensive for capital-intensive companies to debt finance and grow their businesses.

Under an EBIT standard, capital-intensive companies face higher taxes and increased financing costs. This reduces their flexibility and liquidity when financing needed investments, ultimately making it more difficult for these job creators to raise capital, hire new workers, and grow—especially at a time of rising interest rates. In fact, a recent EY study found that failing to reverse the shift from EBITDA to EBIT will cost the U.S. economy 467,000 jobs, $23.4 billion in lost wages, and $43.8 billion in GDP.1

The industries most impacted by the change from EBITDA to EBIT are vital to the U.S. economy. The EY study found that 81% of interest expense disallowed under the new standard would come from manufacturing and related industries. Similarly, a PwC report found that the manufacturing and information industries would pay the most in new tax obligations under an EBIT standard, while accommodation and food services, mining, and transportation and warehousing would experience the greatest percentage tax increases.2

Additionally, limiting business interest deductions harms U.S. competitiveness by making the United States an outlier compared to our peers in the OECD. Among the 35 countries worldwide with an earnings-based interest limitation, the United States is the only one with an EBIT-based standard.

Rep. Joe Morelle (D-NY), Rep. Adrian Smith (R-NE), and Sen. Roy Blunt (R-MO) have introduced legislation to permanently preserve the EBITDA standard and ensure that the tax code does not penalize job-creating investments.3 We respectfully encourage Congress to support investment and job growth at capital-intensive businesses across the country by passing a permanent extension of the EBITDA standard for business interest deductions.

At a minimum, we urge Congress to act by year’s end to extend the EBITDA standard for at least four years. A four-year extension would reverse the EBIT change for 2022 and provide much-needed tax certainty through 2025—critical relief given ongoing economic instability and rising interest rates. Congress must act swiftly to ensure that section 163(j) does not unduly limit businesses’ ability to grow and create jobs here in the United States.


A. O. Smith

Advanced Superabrasives Inc

AICC, The Independent Packaging Association

Air Liquide

Air Transport Services Group

Airtronics Metal Products, Inc.

Albaugh, LLC

Alcoa Corporation

Aldridge, Inc.

Aloha Poke Co.


American Automotive Leasing Association (AALA)

American Chemistry Council

American Colors, Inc.

American Forest & Paper Association

American Gaming Association (AGA)

American Hotel & Lodging Association

American Investment Council

American Mold Builders Association

American Petroleum Institute

American Short Line and Regional Railroad Association (ASLRRA)



Ansara Restaurant Group, Inc.


Arcadia Chair Company


Associated Equipment Distributors

Associated Industries of Missouri


Baker Boy

Ball Corporation

Barnes Group Inc.

Barth Electronics, Inc.

BASF Corporation

Bath & Body Works, Inc.

Beer Institute

Biotechnology Innovation Organization

Boudreaux’s Cajun Grill

Brick Industry Association

BTE Technologies

Business Roundtable

Can Manufacturers Institute

Carson’s Woodside Tavern

Cass Precision Machining

Celanese Corporation

Cellulose Insulation Manufacturers Association


CF Rail Services, LLC

Challenge Manufacturing Company, LLC

Chicago Freight Car Leasing Co

CNH Industrial

Coalition of Franchisee Associations

Composite Can and Tube Institute

Continental Heat Treating, Inc.

Control Technology, Inc

CoorsTek, Inc.

Core Pipe Products, Inc.

CRH Americas, Inc.

CropLife America

Crown Equipment Corporation

Crown Holdings, Inc.

Daktronics, Inc.

Diamond Chemical

Distribution Contractors Association


Domtar Corporation


DT Engineering

E. McIlhenny’s Son Corporation

Easystreet Cafe


ECIA - Electronic Components Industry Association


Eide Bailly LLP

Elmer’s Restaurants, Inc.

EMD Serono, MilliporeSigma and EMD Electronics

Energy Transfer, LP

Equipment Leasing and Finance Association (ELFA)

Erie Molded Plastics, Inc.

Evaporated Coatings, Inc.

Express 4X4 Truck Rental

Filtration Group Corporation

Financial Executives International (FEI)

Flo & Santos

Foodservice Equipment Distributors Association

Forging Industry Association

Fortune Brands Home & Security, Inc.

Franchise Business Services

Garmin International, Inc.

General & Automotive Machine

Glass Packaging Institute

Glen Raven, Inc.

Glier’s Meats Inc

Global Business Alliance

Global Cold Chain Alliance

Greater North Dakota Chamber


Guttenberg Industries, Inc

Haltec Corporation

Hawkeye Industries, Inc

HNTB Corporation

Hog Wild

Hoss’s Steak & Sea House, Inc.

Hot Head Burritos

Hunt Companies, Inc

Husco International

IAPD - The Performance Plastics Association


Idaho Association of Commerce and Industry


Illinois Manufacturers’ Association

INDA, Association of the Nonwoven Fabrics Industry

Independent Bakers Association

Independent Electrical Contractors

Independent Lubricant Manufacturers Association

Indi Pizza Co. DBA Pizza Circo

Industrial Fasteners Institute

Industrial Truck Association

Inspire Brands

Institute of Scrap Recycling Industries

International Franchise Association

International Sign Association

INX International Ink Co.

Iowa Association of Business and Industry

Johnson Controls

Koppers Inc.

Lakeside Foods


MacLean-Fogg Company

Mann Metal Finishing, Inc.

Marsh McLennan

McCormick & Company, Inc.

McGregor Metal Holdings LLC

McIlhenny Company

Memphis Restaurant Association

Metal Powder Industries Federation

Metals Service Center Institute

Miltec UV

Mondelez International, Inc.

Mr. Stax, Inc

National Association of Broadcasters

National Association of Manufacturers

National Confectioners Association

National Foreign Trade Council

National Franchisee Association

National Multifamily Housing Council

National Pork Producers Council

National Railroad Construction and Maintenance Association (NRC)

National Ready Mixed Concrete Association

National Restaurant Association

National Retail Federation

National Tooling and Machining Association

Nature’s Table Franchise Company

NC Chamber

NCTA - The Internet & Television Association


Non-Ferrous Founders’ Society

North American Association of Food Equipment Manufacturers (NAFEM)

North American Die Casting Association

Novelis Inc

NSH USA Corporation


NTCA - The Rural Broadband Association

Nu-Wool Co, Inc.

O-I Glass, Inc.


Panera, LLC

Parr Instrument Company


Pilot Travel Centers LLC

Plastics Industry Association

Plastics Pipe Institute

Plumbing Manufacturers International

Policy and Taxation Group

Portland Cement Association

Precision Machined Products Association

Precision Metalforming Association

Pretzel Power Inc

Railway Supply Institute

RedHawk Energy Systems LLC

Regal Rexnord Corporation

Rhode Island Manufacturers Association

Rockwell Automation


S Corporation Association


Sasser Family Holdings, Inc.

SC Johnson

SDI of Fort Collins #1 Inc.


Small Business & Entrepreneurship Council

Small Business Investor Alliance

Smith and Richardson Inc


Sonoran Hospitality Group

Special Products & Manufacturing, Inc.

Spirit AeroSystems

SSAB Americas

Stockyard Burgers & Bones

Sugar Creek Packing Co.

Sumitomo Corporation of Americas

T. Nickolas Co.

Taco John’s International, Inc.

Taqueria Tsunami

The Adams Company

The Bradbury Group

The Greenbrier Companies

The Hardwood Federation

The Inland Group, LLC

The L. S. Starrett Co.

The Mosaic Company

The Real Estate Roundtable

The Timken Company

Trinity Industries, Inc.

Truck Renting and Leasing Association

Truck Trailer Manufacturers Association (TTMA)

U.S. Chamber of Commerce

Union Leasing, Inc.

Uniweld Products Inc.

Unsukay Concepts, Inc

USG Corporation



Westside Finishing

WI Grocers Association

Willamette Technical Fabricators

Winnebago Industries

Xced Aviation Services


Zimmer Biomet

1 Economic Impact of a Stricter 163(j) Interest Expense Limitation. September 2022. EY, prepared for the National Association of Manufacturers. Available at https://documents.nam.org/tax/nam_interest_deductibility_study.pdf.

2 Economic Analysis of an EBIT-Based Business Interest Limitation. June 2021. PricewaterhouseCoopers LLP, prepared for the American Investment Council. Available at http://www.americasinterest.com/wp-content/uploads/2021/06/AIC-163j-Report-Final-2021-05-27.pdf.

3 Permanently Preserving America’s Investment in Manufacturing Act. H.R. 5371/S. 1077, 117th Cong. (2021)

EBITDA Year End Letter 2022