SC Nebraska News

Representatives Adrian Smith (R-NE), Joe Morelle (D-NY), Kevin Hern (R-OK), and Brad Schneider (D-IL) have reintroduced the American Investment in Manufacturing and Main Street (AIMM) Act. This bipartisan legislation aims to amend the U.S. tax code, restoring the cap on deductible business interest to pre-2022 levels, thereby encouraging investments in America's manufacturing sector.

Before 2022, businesses could deduct 30 percent of earnings before interest, tax, depreciation, and amortization (EBITDA). However, recent changes limit deductions to only EBIT, excluding depreciation and amortization. This change has increased costs for businesses that often rely on loans for capital investments. The AIMM Act seeks to reinstate the full EBITDA standard for deductions.

Rep. Smith stated that after years of "failed economic policies," it is crucial to allow capital-intensive industries to deduct more interest from their taxes to boost competitiveness. He expressed gratitude towards his colleagues for supporting this bipartisan bill.

Rep. Morelle emphasized the importance of local businesses and manufacturers as vital components of the economy and voiced pride in sponsoring legislation that counters harmful tax hikes.

Rep. Hern highlighted how increased limitations on interest deductibility make American businesses less competitive globally and affect workers through lower wages and fewer jobs.

The bill is supported by various stakeholders such as the National Association of Manufacturers (NAM), Charter Communications, and the Restore American Investment Now (RAIN) Coalition.

Chris Netram from NAM praised the AIMM Act for lowering financing costs necessary for manufacturing growth while Catherine Bohigian from Charter Communications stressed its importance in enabling long-term investments like broadband expansion.

Michael O’Rielly from RAIN Coalition underscored that reinstating the pre-2022 EBITDA standard is critical amid rising interest rates and economic uncertainty.