Daily Tax Report ®

Manufacturers Lobbied Successfully to Roll Back Financing Hurdle

July 28, 2020, 11:26 PM

The manufacturing lobby spent over a year pushing back on a few lines in an IRS proposal that would raise the cost of its financing with debt—and the industry won.

The IRS rules, now final (T.D. 9905), set guardrails for a part of the 2017 tax law that capped the amount of interest payments companies could write off their taxes, effectively increasing the cost of debt financing. Previously, companies generally could deduct all their interest. In the final rules released Tuesday, the agency rolled back proposed-rule language that would have tightened the restriction for manufacturers, oil refiners, and,...

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