To amend the Internal Revenue Code of 1986 to permanently extend the allowance for depreciation, amortization, or depletion for purposes of determining the income limitation on the deduction for business interest.

Bill 119 HR 1347, also known as the "Permanently Extend Depreciation Allowance Act," aims to make a permanent change to the Internal Revenue Code of 1986. Specifically, the bill seeks to extend the allowance for depreciation, amortization, or depletion for the purpose of determining the income limitation on the deduction for business interest.

Currently, businesses are able to deduct interest expenses from their taxable income, but there is a limit on the amount of interest that can be deducted based on the business's income. This limitation is calculated using a formula that takes into account the business's earnings before interest, taxes, depreciation, and amortization (EBITDA).

The proposed legislation would make the allowance for depreciation, amortization, or depletion a permanent part of this calculation, ensuring that businesses can continue to deduct these expenses when determining their income limitation for the deduction of business interest. This change would provide businesses with more certainty and stability in their tax planning, potentially encouraging investment and growth. Overall, Bill 119 HR 1347 seeks to support businesses by making a key tax provision permanent, ultimately aiming to promote economic growth and stability.