The American Bankers Association expressed support for several provisions in a proposed tax bill that was advanced by the House today by bipartisan vote. The Tax Relief for American Families and Workers Act (H.R. 7024) contains several proposals affecting banks and their customers. In a letter to House and Senate leaders, ABA highlighted those provisions it said would help banks strengthen an economic climate that incentivizes growth, innovation and entrepreneurship.
One provision supported by ABA would allow bank customers to use the broader earnings before interest, taxes, depreciation and amortization standard, or EBITDA, to deduct their net interest expense under IRC Section 163(j), instead of EBIT. Other ABA-backed provisions would extend 100% expensing for equipment, machinery and vehicles; extend the ability for companies to immediately deduct research and development costs; and strengthen the Low-Income Housing Tax Credit.
“We encourage Congress to advance these legislative provisions for prompt consideration and action,” ABA said.
