WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.) and Kyrsten Sinema (I-Ariz.) today introduced the American Investment in Manufacturing (AIM) Act, bipartisan, bicameral legislation that would reinstate the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) measure for U.S. businesses.

“In the midst of continued high inflation, high interest rates, and increased taxes burdening U.S. businesses, additional limitations like these jeopardize American manufacturers, retailers, and service providers’ ability to remain viable and compete on the global stage. This bipartisan legislation would reinstate a needed measure that allows industries to, grow, increase jobs and wages, and contribute to the U.S. economy. I’m proud to stand with American businesses, and I encourage my colleagues to join in support of this reinstatement,” Senator Capito said.

“We’re empowering Arizona small businesses with the economic freedom to grow and thrive by cutting harmful costs in the tax code,” Senator Sinema said.

“The WVMA supports reversing stricter limits on interest deductibility that could cost the United States nearly a half million manufacturing jobs,” Rebecca McPhail, President of the West Virginia Manufacturers Association, said. “We applaud Senator Capito’s leadership in introducing the American Manufacturing Investment Act.”

“The American Investment in Manufacturing (AIM) Act will lower the cost of financing the critical investments in machinery and equipment necessary for manufacturing growth and protect more than 450,000 American jobs. We thank Sens. Capito and Sinema for their support of the manufacturing sector and urge Congress to act swiftly on this vital legislation,” Chris Netram, Managing Vice President, Tax & Domestic Economic Policy, National Association of Manufacturers, said.

“Consumers choose restaurants for experience and value. To ensure the best of both, restaurant owners work hard to renovate, refurbish, and improve their dining rooms and kitchens. The high costs of these enhancements are investments for business growth, but the current limitation of depreciation and amortization penalize their good intentions by adding to their tax burden. We thank Sen. Capito for leading this legislation and her continued support of restaurant operators and other Main Street small business owners,” Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association, said.

“When a restaurant like mine plans a remodel or expansion, we keep a close eye on how these costs affect cash-on-hand and taxes. Limiting the deduction for depreciation or amortization is a tax on investment, challenging a restaurant’s ability to expand operations or hire more people. Senator Capito knows what this means for West Virginia and we appreciate her commitment to make this right,” Matt Herridge, West Virginia Restaurant Franchisee, said.

“The ability to maximize resources in difficult to serve rural areas is paramount for NTCA members, who provide their communities with affordable and reliable internet services,” Shirley Bloomfield, CEO of NTCA-The Rural Broadband Association, said. “Now more than ever, it is critical that rural internet service providers have the ability to invest in the technology and employees they need to best serve their communities and I applaud Senators Capito and Sinema for introducing the AIM Act today.”

Companion legislation was introduced in the U.S. House of Representatives by Adrian Smith (R-Neb.-03), Joe Morelle (D-N.Y.-25), Kevin Hern (R-Okla.-01), and Brad Schneider (D-Ill.-10)


Prior to 2022, businesses could deduct 30% of its earnings before interest, tax, depreciation, and amortization (EBITDA). A new limitation that went into effect would limit the deduction to only EBIT. This change is an added cost to businesses already suffering from a sustained high-interest environment in the U.S. and could harm global competition. This restriction will harm a wide range of industries including – but not limited to – American manufacturers, retailers, broadband providers, healthcare systems, and restaurants. Businesses affected by the change will on average see close to a threefold increase in their incremental tax obligations

The American Investment in Manufacturing (AIM) Act would reinstate the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) measure, supporting a competitive tax code for American job creators and businesses. Reinstating EBITDA will make it easier for capital intensive companies to raise capital or obtain financing, protect U.S. jobs and wages, and strengthen global competition.

A one-pager on the legislation is available here.

Full text of the legislation is available here.


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