For the 2022 tax year and beyond, companies face new, more restrictive limitations on interest expense deductibility that could have major implications for their tax liability. Enacted as part of the Tax Cuts and Jobs Act of 2017 (TCJA), Section 163(j) of the Internal Revenue Code created limits on the interest expense companies are allowed to deduct when computing taxable income. The legislation has been phased in over the last few years, but changes that took effect in 2022 place the most restrictive…
