As Congress looks to reform the tax code, lawmakers are looking for ways to offset the cost of a lower tax rate. Since the White House and Congressional Leaders have ruled out using the Border Adjustment Tax (BAT), some lawmakers are considering capping or ending the deductibility of interest for businesses, which would raise an estimated $1 trillion.
ICSC and the BUILD Coalition have been barnstorming Congress to educate members and staff about the economic harm that ending the deduction would cause. Businesses United for Interest and Loan Deductibility (BUILD) is a group of businesses and trade associations committed to maintaining the full deduction for business interest expense in the tax code. Its members represent multiple sectors of the U.S. economy, including real estate, telecommunications, manufacturing, agriculture, healthcare, finance, and small business.
Interest deductibility (ID) has been a staple of the modern U.S. tax code since its inception more than 100 years ago. Restricting this deduction for ordinary and necessary expenses would increase taxes on commercial real estate and other critical sectors of the American economy.
If you would like more information on how you can get involved, contact Phillips Hinch, ICSC’s Vice President of Tax at email@example.com or 202-626-1402.