Owners of larger businesses, beware: Unless you qualify for an exception, your business interest deduction is generally limited to 30% of adjusted taxable income (ATI). But there’s a silver lining. The limitation has been relaxed somewhat under the One Big Beautiful Bill Act. Starting in 2025, the ATI calculation aligns with the accounting concept of earnings before interest, taxes, depreciation and amortization (EBITDA), not earnings before interest and taxes (EBIT). In plain English, that means many businesses subject to the limitation will be able to deduct more interest expense on their 2025 returns. Contact us to learn more.
