Companies Rethink US Debt Placement After GOP Tax Law: BGOV Tax

Interest Break Limit Gives Firms Pause

A 2025 GOP tax law change that limits the ability of US firms with a global footprint to deduct interest expenses is forcing some companies to rethink their domestic debt strategies.

Republicans in Congress are pushing for a change to the law that would add global income back into the interest deduction calculation, though the prospects of getting it done this Congress are dim.

The law adds another factor into multinationals’ decision-making while gaming out debt decisions, and there’s no rush yet to borrow overseas, tax practitioners say. But the new tax law ...