Bill Details

HR.1347 - 119th Congress

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This bill would change federal tax rules for businesses by making a tax benefit permanent. When companies figure out how much business interest they can deduct, they would still be allowed to count depreciation, amortization, and depletion costs in that calculation. In simple terms, this could let some businesses deduct more interest expense from their taxes, which may help with cash flow and investment. The bill is meant to support business growth, especially for manufacturers and smaller companies.

  • It changes the part of the tax code that limits how much business interest a company can deduct.
  • It permanently extends a rule that had been set to expire, instead of ending after 2021.
  • The change would apply to tax years beginning after December 31, 2021.

Official Summaries

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Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1347 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 1347

 To amend the Internal Revenue Code of 1986 to permanently extend the 
allowance for depreciation, amortization, or depletion for purposes of 
    determining the income limitation on the deduction for business 
                               interest.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2025

Mr. Smith of Nebraska (for himself, Mr. Morelle, Mr. Hern of Oklahoma, 
   Mr. Schneider, Mr. Miller of Ohio, Mr. Feenstra, Mr. LaHood, Mr. 
     Buchanan, Mr. Smucker, Mr. Moran, Mr. Kustoff, Mr. Carey, Ms. 
   Strickland, Mr. Yakym, Mr. Panetta, Mr. Quigley, and Ms. Tenney) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to permanently extend the 
allowance for depreciation, amortization, or depletion for purposes of 
    determining the income limitation on the deduction for business 
                               interest.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Investment in Manufacturing 
and Main Street Act'' or the ``AIMM Act''.

SEC. 2. PERMANENT EXTENSION OF ALLOWANCE FOR DEPRECIATION, 
              AMORTIZATION, OR DEPLETION IN DETERMINING THE LIMITATION 
              ON BUSINESS INTEREST.

    (a) In General.--Section 163(j)(8)(A)(v) of the Internal Revenue 
Code of 1986 is amended by striking ``in the case of taxable years 
beginning before January 1, 2022,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2021.
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