Business Interest Deductibility

Under current law, interest paid by businesses on their debt is fully deductible. However, concerns that firms might be over-leveraging have led to questions on whether the current 100 percent deduction for business interest expenses should be curtailed. Such a change would have serious unintended negative consequences on the ability of the apartment industry, which relies heavily on the debt markets, to meet the nation’s housing demand. As lawmakers take up tax reform, they should maintain the full deductibility of business interest. Read our Fact Sheet to learn more.