WASHINGTON, D.C. — U.S. Senator Shelley Moore Capito (R-W.Va.) today highlighted the broad support from national and local business organizations and industry stakeholders for the American Investment in Manufacturing (AIM) Act. The legislation, which Senator Capito introduced with U.S. Senator Kyrsten Sinema (I-Ariz.) in April, would reinstate the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) measure for U.S. businesses to make critical investments and protect American jobs.

In September, Senator Capito hosted a panel presentation and discussion on the implication of the tax code change around Section 163(j) and the real-world impact it’s having on businesses in every state across the country. Following the event, the National Association of Manufacturers (NAM) released an updated 163(j) study in October that focused on the economic impact of the EBIT-based interest expense limitation. Specifically, the data showed that failing to reverse the change from EBITDA to EBIT will cost the U.S. economy 867,000 jobs, $58 billion in lost wages, and $108 billion in GDP. You can find the updated study here.

Last week, 1,322 companies across the United States, industry associations, state and local chambers, and allied organizations signed a letter calling on Congress to restore three pro-growth tax policies, one of which was a pro-growth interest deductibility standard. Click here to read the full letter.

Americans for Tax Reform (ATR):

“Before the policy expired in 2022, businesses were able to deduct net interest expenses up to 30 percent of earnings before interest, tax, depreciation, and amortization (EBITDA). This globally competitive standard provided American businesses – especially manufacturers – a crucial tax cut, allowing them to compete with foreign businesses. Unfortunately, this deduction was narrowed to 30 percent of earnings before interest and tax (EBIT). Thankfully, Senator Shelley Moore Capito introduced the American Investment in Manufacturing (AIM) Act, which would restore EBITDA. In this high-interest environment, all lawmakers who value the protection of U.S. jobs, wages, and competitiveness should support and cosponsor this legislation,” Grover Norquist, ATR President, said.

American Petroleum Institute:

“The American Investment in Manufacturing Act will help lower the costs of financing critical investments in American-made energy during a time of high inflation, rising interest rates and persistent supply chain challenges. We thank Sens. Capito and Sinema for championing this bipartisan legislation and urge lawmakers in both chambers to support the reinstatement of this critical tax measure,” Amanda Eversole, American Petroleum Institute EVP & Chief Advocacy Officer, said.

Business Roundtable:

“The switch to a stricter business interest deduction increases taxes on American job creators, and we applaud Senator Capito and Senator Sinema for championing legislation to reverse this harmful policy,” Cathy Schultz, Vice President of Tax and Fiscal Policy at Business Roundtable, said. “With businesses already facing pressure from a period of high interest rates, returning to a deduction that is in line with every other developed country would strengthen America’s competitiveness, help create new jobs and increase domestic investment. Business Roundtable strongly supports the American Investment in Manufacturing Act and encourages Congress to pass this bill as soon as possible.”

Equipment Leasing and Financing:

“The tax code shouldn’t pick winners and losers in whether a customer acquires their equipment through leasing, financing, or buying outright. This EBIT standard does exactly that, on steroids! It’s time to bring back the DA!” Andy Fishburn, Vice President, Federal Government Relations, Equipment Leasing and Finance Association (ELFA), said.

Global Business Alliance:

“Staying globally competitive is a bipartisan priority. Senators Capito and Sinema have come together to introduce a commonsense tax fix that will keep the United States on top. The American Investment in Manufacturing Act will restore the EBITDA standard in line with international norms and encourage more job-creating investments to help rebuild U.S. supply chains,” Nancy McLernon, President & CEO of the Global Business Alliance, said.

Inspire Brands:

“My fellow restaurant owners and I want to expand our networks and open more locations. That’s good for the communities we serve and it’s good for our businesses. But without the ability to deduct interest on depreciation and amortization, we’re thinking twice about renovations and new construction. Sen. Capito’s and Sen. Sinema’s AIM Act would help business owners like me in West Virginia and beyond,” Greg Darby, Arby’s franchisee in West Virginia, said.

“Our restaurants offer accessible jobs with a low barrier to entry and high upward mobility potential, and the efforts by Sens. Capito and Sinema to push the AIM Act would allow our industry better access to capital to support job creation. Without the AIM Act, businesses large and small are disincentivized from investing in job creation. With it, the industry is better able to open up opportunities in communities all across America,” Inspire Brands, said.

National Association of Manufacturers (NAM):

“The America Invests 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, NAM’s Managing Vice President of Tax & Domestic Economic Policy, said.

National Restaurants Association:

“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.

National Taxpayers Union (NTU):

“NTU applauds Sen. Shelley Moore Capito (R-WV) and Sen. Kyrsten Sinema (I-AZ) for introducing the American Investment in Manufacturing (AIM) Act, which would reinstate an important tax measure for American taxpayers and businesses. The AIM Act seeks to reauthorize the earnings before interest, tax, depreciation, and amortization (EBITDA) standard, a move that not only safeguards but helps expand American manufacturing jobs. Importantly, this legislation enables manufacturers to fight inflation and to lower the cost of financing used by manufacturers to acquire new equipment and machinery. NTU strongly encourages Congress to act swiftly to pass the AIM Act and reinstate the critical tax standard, recognizing its importance for taxpayers and businesses alike,” Grant Carlson, NTU Policy and Government Affairs Manager, said.


“Atlanta-based Novelis welcomes the introduction of the American Investment in Manufacturing Act, and appreciates the leadership of Senator Shelley Moore Capito, along with that of Senator Kristen Sinema and U.S. Congressmen Adrian Smith, Kevin Hern, Brad Schneider and Joe Morelle,” Ivanisa Baeta, VP of Global Tax for Novelis, said. “By increasing the deductibility of interest expenses, this legislation will ease the burden of high interest rates, keep the U.S. tax code competitive globally, and allow capital-intensive manufacturers like Novelis to reinvest in R&D and manufacturing operations in the United States.”

NTCA – The Rural Broadband Association:

“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.”

U.S. Chamber of Commerce:

“The U.S. Chamber of Commerce strongly supports S. 1232 / H.R. 2788, the American Investment in Manufacturing (AIM) Act. These bills would reinstate the traditional earnings before interest, taxes, depreciation, and amortization (EBITDA) standard for calculating the limitation on the deduction for business interest expense. As of 2022, businesses have been required to calculate their interest expense deductions based on the much more stringent earnings before interest and taxes (EBIT) standard. This limitation has made all forms of business investment more costly and risks leading to reduced investment, slower job creation, smaller wage increases, and lower overall economic growth. The Chamber calls on Congress to immediately restore the traditional EBITDA standard for calculating the limitation on the deduction for business interest expense, and we urge you to cosponsor these important bills,” Neil Bradley, U.S. Chamber of Commerce Executive Vice President, Chief Policy Advisor, and Head of Strategic Advocacy, said.

West Virginia Manufacturers Association (WVMA):

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

West Virginia Restaurants Association:

“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.

A one-pager on the legislation is available here.

Full text of the legislation is available 

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