Bottom Line Up Front: The One Big Beautiful Bill Act’s temporary return to EBITDA-based interest deduction calculations (2025-2029) fundamentally impacts equipment financing economics for capital-intensive customers. By adding depreciation and amortization back to the Section 163(j) interest limitation calculation, equipment-heavy businesses can deduct significantly more interest expense. This change reduces effective borrowing costs, might improve debt service coverage ratios, and makes financing more attractive than equity funding for equipment acquisitions.

Section 163(j) business interest limitations, which restrict interest deductions to 30% of Adjusted Taxable Income, temporarily return to EBITDA calculations from 2025 through 2029. This reverses the 2022 change to EBIT calculations that substantially increased disallowed interest for businesses with significant depreciation and amortization expenses—exactly the customers equipment financiers serve.