Charleston Leader

U.S. Senator Shelley Moore Capito has introduced the American Investment in Manufacturing and Main Street (AIMM) Act, aiming to reinstate the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) measure. This legislation seeks to support a competitive tax code for American businesses by making it easier for capital-intensive companies to raise capital or obtain financing. It also aims to protect U.S. jobs and wages while strengthening global competition.

Senator Capito commented on the proposal: “After years of sustained inflation, high interest rates, and increased taxes burdening U.S. businesses due in part to the failed policies of the Biden administration, additional limitations jeopardize American manufacturers, retailers, and service providers’ ability to compete across global markets. This legislation would reinstate a needed measure to encourage industrial growth, increase jobs and wages at all levels, and contribute to America’s economy. I’m proud to support American workers and businesses by leading the introduction of this legislation, and I encourage my colleagues to join me in this effort.”

In the House of Representatives, companion legislation was introduced by Representatives Adrian Smith from Nebraska's 3rd district, Joe Morelle from New York's 25th district, Kevin Hern from Oklahoma's 1st district, and Brad Schneider from Illinois' 10th district.

Before 2022, businesses were able to deduct 30% of their EBITDA; however, a recent change now limits deductions only to EBIT. This shift is seen as an added cost that could harm global competition by impacting various industries such as manufacturing, broadband services, healthcare systems, and restaurants. Without reverting this change through the AIMM Act, businesses are expected to face nearly a threefold increase in incremental tax obligations.

The AIMM Act has garnered endorsements from several organizations including The National Association of Manufacturers, Business Roundtable, Global Business Alliance among others.