The U.S. IRS has published updated instructions for Form 8990, Limitation on Business Interest Expense Under Section 163(j). One of the key updates concerns a change in the adjusted taxable income (ATI) computation for the limitation. As approved in the Tax Cuts and Jobs Act, the limitation on business interest deductions is equal to 30% of the ATI. For tax years beginning before 2022, depreciation, amortization, and depletion deductions were not taken into account (i.e., added back in the ATI computation). For tax years beginning after 2021, however, the computation for ATI is computed with the deductions for depreciation, amortization, and depletion, as highlighted in the updated instructions. As a result, deductions for business interest expenses are now generally more limited.