26 U.S.C. 163: Interest

2020

• Pub. L. 116–260 substituted "December 31, 2021" for "December 31, 2020". (Consolidated Appropriations Act, 2021) Law text · (h)
• Pub. L. 116–136 added par. (10) and redesignated former par. (10) as (11). (Coronavirus Aid, Relief, and Economic Security Act" or the "CARES Act) Law text · (j), (11)

2019

• Pub. L. 116–94 substituted "December 31, 2020" for "December 31, 2017". (Further Consolidated Appropriations Act, 2020) Law text · (h)

2018

• Pub. L. 115–141, §401(b)(12), struck out subpar. (E). Text read as follows: "Investment income of the taxpayer for any taxable year shall be reduced by the amount of the passive activity loss to which section 469(a) does not apply for such taxable year by reason of section 469(m)… (Consolidated Appropriations Act, 2018) Law text · (d)
• Pub. L. 115–141, §401(c)(1)(C), substituted "The portion of the original issue discount with respect to any debt instrument which is" for "In the case of any debt instrument issued after July 1, 1982, the portion of the original issue discount with respect to such debt instrument wh… (Consolidated Appropriations Act, 2018) Law text · (e)
• Pub. L. 115–141, §401(c)(3)(B), amended par. (4) generally. Prior to amendment, text read as follows: "This subsection shall not apply to any debt instrument described in— (Consolidated Appropriations Act, 2018) Law text · (e)
• Pub. L. 115–141, §401(a)(48), inserted "in" before "subsection (i)(1)(B)". (Consolidated Appropriations Act, 2018) Law text · (e)
• Pub. L. 115–123 substituted "December 31, 2017" for "December 31, 2016". (Bipartisan Budget Act of 2018) Law text · (h)

2017

• Pub. L. 115–97, §11043(a), added subpar. (F). Law text · (h)
• Pub. L. 115–97, §13301(a), amended subsec. (j) generally. Prior to amendment, subsec. (j) related to a limitation on deduction for interest on certain indebtedness of a corporation. Law text · (j)

2015

• Pub. L. 114–113 substituted "December 31, 2016" for "December 31, 2014". (Consolidated Appropriations Act, 2016) Law text · (h)

2014

• Pub. L. 113–295, §221(a)(25)(A)(i), struck out par. (6) which related to phase-in of disallowance. Law text · (d)
• Pub. L. 113–295, §104(a), substituted "December 31, 2014" for "December 31, 2013". Law text · (h)
• Pub. L. 113–295, §220(h), substituted "Department of Veterans Affairs or the Rural Housing Service" for "Veterans Administration or the Rural Housing Administration". Law text · (h)
• Pub. L. 113–295, §221(a)(25)(A)(ii), struck out par. (5). Text read as follows: "In the case of any taxable year beginning in calendar years 1987 through 1990, the amount of interest with respect to which a deduction is disallowed under this subsection shall be equal to the applicab… Law text · (h)

2013

• Pub. L. 112–240, §204(a), substituted "December 31, 2013" for "December 31, 2011". (American Taxpayer Relief Act of 2012) Law text · (h)
• Pub. L. 112–240, §204(b), substituted "Department of Veterans Affairs" for "Veterans Administration" and "Rural Housing Service" for "Rural Housing Administration". (American Taxpayer Relief Act of 2012) Law text · (h)

2010

• Pub. L. 111–147, §502(a)(2)(B), inserted "or" at end of cl. (ii), substituted period for ", or" in cl. (iii), and struck out cl. (iv), which read as follows: "is described in subparagraph (B)." (Hiring Incentives to Restore Employment Act) Law text · (f)
• Pub. L. 111–147, §502(a)(1), (2)(C)(i), redesignated subpar. (C) as (B), struck out ", and subparagraph (B)," after "subparagraph (A)" in introductory provisions, and struck out former subpar. (B) which related to certain obligations not included as registration-required obligati… (Hiring Incentives to Restore Employment Act) Law text · (f)
• Pub. L. 111–147, §502(a)(2)(C)(ii), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: "in the case of— (Hiring Incentives to Restore Employment Act) Law text · (f)
• Pub. L. 111–147, §502(a)(1), redesignated subpar. (C) as (B). (Hiring Incentives to Restore Employment Act) Law text · (f)
• Pub. L. 111–147, §502(c), inserted before period at end ", except that a dematerialized book entry system or other book entry system specified by the Secretary shall be treated as a book entry system described in such section". (Hiring Incentives to Restore Employment Act) Law text · (f)
• Pub. L. 111–312 substituted "December 31, 2011" for "December 31, 2010". (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) Law text · (h)

2009

• Pub. L. 111–5, §1232(a), added subpar. (F) and redesignated former subpar. (F) as (G). (American Recovery and Reinvestment Act of 2009) Law text · (e), (G)
• Pub. L. 111–5, §1232(b), in concluding provisions, inserted "(i)" before "permit a rate" and ", or (ii) permit, on a temporary basis, a rate to be used with respect to any debt instrument which is higher than the applicable Federal rate if the Secretary determines that such rate is … (American Recovery and Reinvestment Act of 2009) Law text · (i)

2007

• Pub. L. 110–142 substituted "December 31, 2010" for "December 31, 2007". (Mortgage Forgiveness Debt Relief Act of 2007) Law text · (h)

2006

• Pub. L. 109–432, §419(a), added subpar. (E). (Tax Relief and Health Care Act of 2006) Law text · (h)
• Pub. L. 109–432, §419(b), added subpars. (E) and (F). (Tax Relief and Health Care Act of 2006) Law text · (h), (F)
• Pub. L. 109–222, §501(a), added par. (8). Former par. (8) redesignated (9). (Tax Increase Prevention and Reconciliation Act of 2005) Law text · (j)
• Pub. L. 109–222 redesignated par. (8) as (9) and added subpar. (D). (Tax Increase Prevention and Reconciliation Act of 2005) Law text · (j)

2005

• Pub. L. 109–135 added subcl. (III) and redesignated former subcl. (III) as (IV). (Gulf Opportunity Zone Act of 2005) Law text · (j), (IV)

2004

• Pub. L. 108–357, §841(a), added subpar. (B) and redesignated former subpar. (B) as (C). (American Jobs Creation Act of 2004) Law text · (e), (C)
• Pub. L. 108–357, §845(a), inserted "or equity held by the issuer (or any related party) in any other person" after "or a related party". (American Jobs Creation Act of 2004) Law text · (l)
• Pub. L. 108–357, §845(d), substituted "or any other person" for "or a related party" in introductory provisions. (American Jobs Creation Act of 2004) Law text · (l)
• Pub. L. 108–357, §845(b), (c), added pars. (4) and (5) and redesignated former pars. (4) and (5) as (6) and (7), respectively. (American Jobs Creation Act of 2004) Law text · (l)
• Pub. L. 108–357, §838(a), added subsec. (m) and redesignated former subsec. (m) as (n). (American Jobs Creation Act of 2004) Law text · (m), (n)

2003

• Pub. L. 108–27 inserted at end "Such term shall include qualified dividend income (as defined in section 1(h)(11)(B)) only to the extent the taxpayer elects to treat such income as investment income for purposes of this subsection." (Jobs and Growth Tax Relief Reconciliation Act of 2003) Law text · (d)

1999

• Pub. L. 106–170 added subpar. (C). (Ticket to Work and Work Incentives Improvement Act of 1999) Law text · (j)

1998

• Pub. L. 105–277 added subpar. (F). (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (h)

1997

• Pub. L. 105–34, §503(b)(2)(B), struck out "or 6166 or under section 6166A (as in effect before its repeal by the Economic Recovery Tax Act of 1981)" after "section 6163". (Taxpayer Relief Act of 1997) Law text · (h)
• Pub. L. 105–34, §312(d)(1), substituted "section 121" for "section 1034". (Taxpayer Relief Act of 1997) Law text · (h)
• Pub. L. 105–34, §1604(g)(1), substituted "clause (ii)" for "clause (i)" in introductory provisions. (Taxpayer Relief Act of 1997) Law text · (j)
• Pub. L. 105–34, §503(b)(2)(A), added subsec. (k). Former subsec. (k) redesignated (l). (Taxpayer Relief Act of 1997) Law text · (k)
• Pub. L. 105–34, §1005(a), added subsec. (l). Former subsec. (l) redesignated (m). (Taxpayer Relief Act of 1997) Law text · (l)
• Pub. L. 105–34, §503(b)(2)(A), redesignated subsec. (k) as (l). (Taxpayer Relief Act of 1997) Law text · (l)
• Pub. L. 105–34, §1005(a), redesignated subsec. (l) as (m). (Taxpayer Relief Act of 1997) Law text · (m)

1996

• Pub. L. 104–188, §1704(f)(2)(A), inserted before period at end "(and clause (ii) of paragraph (2)(A) shall not apply for purposes of applying this subsection to the amount so treated)". (Small Business Job Protection Act of 1996) Law text · (j)
• Pub. L. 104–188, §1703(n)(4), which directed that cl. (ii) be amended by substituting "which is" for "which is a", could not be executed, because "which is a" does not appear. (Small Business Job Protection Act of 1996) Law text · (j)
• Pub. L. 104–188, §1704(f)(2)(B), added par. (7) and redesignated former par. (7) as (8). (Small Business Job Protection Act of 1996) Law text · (j), (8)

1993

• Pub. L. 103–66, §13206(d)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: "The term 'investment income' means the sum of— · (d)
• Pub. L. 103–66, §13228(c)(2), substituted "for interest on certain indebtedness" for "for certain interest paid by corporation to related person" in heading. · (j)
• Pub. L. 103–66, §13228(a), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: "For purposes of this subsection— · (j)
• Pub. L. 103–66, §13228(c)(1), struck out "to a related person" after "by the taxpayer" in introductory provisions. · (j)
• Pub. L. 103–66, §13228(b), added subpars. (D) and (E). · (j), (E)

1990

• Pub. L. 101–508, §11701(b)(1), amended last sentence generally. Prior to amendment, last sentence read as follows: "For purposes of clause (ii), rules similar to the rules of subsection (i)(3)(B) shall apply in determining the time when the original issue discount is paid." · (e)
• Pub. L. 101–508, §11701(b)(2)(B), inserted sentence at end. · (i)
• Pub. L. 101–508, §11701(b)(2)(A), struck out "(or stock)" after "obligation" wherever appearing. · (i)
• Pub. L. 101–508, §11701(c)(2), substituted "or on any other day" for "and on such other days". · (j)
• Pub. L. 101–508, §11701(c)(1), substituted "reduced (but not below zero) by such" for "less such" in introductory provisions. · (j)

1989

• Pub. L. 101–239, §7202(a), added par. (5) and redesignated former par. (5) as (6). · (e), (6)
• Pub. L. 101–239, §7202(b), added subsec. (i). Former subsec. (i) redesignated (j). · (i)
• Pub. L. 101–239, §7210(a), added subsec. (j). Former subsec. (j) redesignated (k). · (j)
• Pub. L. 101–239, §7202(b), redesignated subsec. (i) as (j). · (j)
• Pub. L. 101–239, §7210(a), redesignated subsec. (j) as (k). · (k)

1988

• Pub. L. 100–647, §1005(c)(1), substituted "properly allocable to" for "incurred or continued to purchase or carry". · (d)
• Pub. L. 100–647, §1005(c)(2), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "The term 'investment income' means the sum of— · (d)
• Pub. L. 100–647, §1005(c)(3), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "The amount of interest disallowed under this subsection for any such taxable year shall be equal to the sum of— · (d)
• Pub. L. 100–647, §1006(u)(1), substituted "paragraph (7)" for "paragraph (6)". · (e)
• Pub. L. 100–647, §1005(c)(4), substituted "properly allocable to" for "incurred or continued in connection with the conduct of". · (h)
• Pub. L. 100–647, §1005(c)(12), inserted "or under section 6166A (as in effect before its repeal by the Economic Recovery Tax Act of 1981)" before period at end. · (h)
• Pub. L. 100–647, §1005(c)(5), effective as if enacted immediately before enactment of Pub. L. 100–203 (see 1987 Amendment note below), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: "The amount under subparagraph (B)(ii)(I) at any time after Augus… · (h)
• Pub. L. 100–647, §1005(c)(6)(A), effective as if enacted immediately before enactment of Pub. L. 100–203 (redesignating par. (5) as (4), see 1987 Amendment note below), amended heading by substituting "Other definitions and special rules—For purposes of this subsection—" for "Other … · (h)
• Pub. L. 100–647, §1005(c)(6)(B)(i), (7), effective as if enacted immediately before enactment of Pub. L. 100–203 (redesignating par. (5) as (4), see 1987 Amendment note below), amended subpar. (A) by striking out "For purposes of this subsection—" after "Qualified residence" in i… · (h)
• Pub. L. 100–647, §1005(c)(6)(B)(ii), effective as if enacted immediately before enactment of Pub. L. 100–203 (redesignating par. (5) as (4), see 1987 Amendment note below), amended subpar. (B) by substituting "Any" for "For purposes of this paragraph, any". · (h)
• Pub. L. 100–647, §1005(c)(8), effective as if enacted immediately before enactment of Pub. L. 100–203 (redesignating par. (5) as (4), see 1987 Amendment note below), par. (4) added subpars. (C) and (D). · (h), (D)
• Pub. L. 100–647, §2004(b)(1), redesignated par. (6) as (5). · (h)
• Pub. L. 100–647, §2004(b)(1), redesignated par. (6) as (5). · (h)
• Pub. L. 100–647, §1005(c)(9), substituted "but for this paragraph" for "but for this subsection". · (h)
• Pub. L. 100–647, §1009(b)(6), made technical correction to directory language of Pub. L. 99–514, §902(e)(1), see 1986 Amendment note below. · (i)

1987

• Pub. L. 100–203, §10212(b), substituted "section 469(m)" for "section 469(l)". · (d)
• Pub. L. 100–203, §10102(a), amended par. (3) generally. Prior to amendment (see 1988 Amendment note above), par. (3) read as follows: "For purposes of this subsection— · (h)
• Pub. L. 100–203, §10102(b), redesignated par. (5) as (4) and struck out former par. (4) which defined "qualified indebtedness" for purposes of this subsection. · (h), (5)

1986

• Pub. L. 99–514, §511(a), substituted "Limitation on investment interest" for "Limitation on interest on investment indebtedness" in heading, and amended text generally, revising and restating as pars. (1) to (6) provisions of former pars. (1) to (7). · (d)
• Pub. L. 99–514, §1803(a)(4), added subpar. (C). · (e)
• Pub. L. 99–514, §1810(e)(1)(A), inserted "The preceding sentence shall not apply to the extent that the original issue discount is effectively connected with the conduct by such foreign related person of a trade or business within the United States unless such original issue disc… · (e)
• Pub. L. 99–514, §1810(e)(1)(B), redesignated par. (4), relating to cross references, as (5). · (e)
• Pub. L. 99–514, §1301(j)(3), substituted "section 149(a)(3)" for "section 103(j)(3)". · (f)
• Pub. L. 99–514, §511(b), added subsec. (h). Former subsec. (h) redesignated (i). · (h)
• Pub. L. 99–514, §902(e)(1), as amended by Pub. L. 100–647, §1009(b)(6), substituted "section 265(a)(2)" for "section 265(2)". · (i)
• Pub. L. 99–514, §511(b), redesignated former subsec. (h) as (i). · (i)

1984

• Pub. L. 98–369, §56(b), designated existing provisions as cl. (i) and added cl. (ii). · (d)
• Pub. L. 98–369, §42(a)(3), substituted "debt instrument" for "bond" in two places and struck out "by an issuer (other than a natural person)" before ", the portion of the original issue". · (e)
• Pub. L. 98–369, §42(a)(3), substituted provisions relating to debt instruments for provisions relating to bonds. · (e)
• Pub. L. 98–369, §128(c), added par. (3) relating to special rule for original issue discount on obligation held by related foreign person. Former par. (3), relating to exceptions, redesignated (4). · (e)
• Pub. L. 98–369, §42(a)(3), added par. (3) relating to exceptions. · (e)
• Pub. L. 98–369, §128(c), redesignated par. (3), relating to exceptions, as (4). · (e)
• Pub. L. 98–369, §42(a)(3), added par. (4) relating to cross references. · (e)
• Pub. L. 98–369, §127(f), redesignated existing provision as subcl. (I), and in subcl. (I) as so redesignated, inserted reference to subpar. (A) and substituted "or" for "and", and added subcl. (II). · (f)
• Pub. L. 98–369, §612(c), added subsec. (g) and redesignated former subsec. (g) as (h). · (g), (h)

1982

• Pub. L. 97–354 redesignated subpar. (D) as (B). Former subpars. (B) and (C), relating to partnerships and shareholders of electing small business corporations, respectively, were struck out. · (d)
• Pub. L. 97–248, §231(b), added subsec. (e) relating to original issue discount. Former subsec. (e), setting forth cross references, redesignated (f). · (e)
• Pub. L. 97–248, §231(b), redesignated former subsec. (e), setting forth cross references, as (f). · (e)
• Pub. L. 97–248, §310(b)(2), added subsec. (f) relating to the requirement that obligations be in registered form to be tax-exempt. Former subsec. (f), setting forth cross references, redesignated (g). · (f)
• Pub. L. 97–248, §310(b)(2), redesignated former subsec. (f), setting forth cross references, as (g). · (g)

1976

• Pub. L. 94–455, §1901(b)(8)(C), substituted "organization described in section 170(b)(1)(A)(ii) and which is provided for a student of such organization" for "institution (as defined in section 151(e)(4)) and which is provided for a student of such institution". · (b)
• Pub. L. 94–455, §209(a)(1), among other changes, substituted in subpar. (A) "$10,000" for "$25,000" and "$5,000" for "$12,500", struck out subpar. (C) relating to the excess of net long-term capital gain over short-term capital loss and subpar. (D) relating to the excess of investme… · (d)
• Pub. L. 94–455, §209(a)(1), among other changes, struck out provisions relating to the limitation on the amount of interest allowable by this par. and to reduction of disallowed investment interest for capital gain deduction purposes. · (d)
• Pub. L. 94–455, §209(a)(2), inserted provision relating to determination of the amount of net investment income where taxpayer has investment interest for taxable year to which this subsection applies. · (d)
• Pub. L. 94–455, §§205(c)(3), 1901(b)(3)(K), substituted "1250, and 1254" for "and 1250", and "ordinary income" for "gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231". Section 205(c)(3) of Pub. L. 94–455, which… · (d)
• Pub. L. 94–455, §209(a)(3), substituted "limitation in paragraph (1)" for "limitations in paragraphs (1) and (2)(A)". · (d)
• Pub. L. 94–455, §1906(b)(13)(A), struck out "or his delegate" after "Secretary". · (d), (C)
• Pub. L. 94–455, §209(a)(4), (5), redesignated par. (6) as (5) and inserted provision relating to the application of this paragraph after Dec. 31, 1975, on an allocation basis rather than a specific item basis. Former par. (5), relating to capital gains treatment of investment intere… · (d)
• Pub. L. 94–455, §1901(b)(3)(K), directed the amendment of par. (5) by substituting "ordinary income" for "gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231", such par. (5) having been struck out by Pub. L. 94–455, §209(a)(4). · (d)
• Pub. L. 94–455, §§209(a)(4), 1906(b)(13)(A), redesignated par. (7) as (6) and struck out in provision following subpar. (B) "or his delegate" after "Secretary". Former par. (6) redesignated (5). · (d)
• Pub. L. 94–455, §209(a)(6), added par. (7). Former par. (7) redesignated (6). · (d)

1971

• Pub. L. 92–178, §304(b)(2), inserted "the amount (if any) by which the deductions allowable under this section (determined without regard to this subsection) and sections 162, 164(a)(1) or (2), or 212 attributable to property of the taxpayer subject to a net lease exceeds the ren… · (d)
• Pub. L. 92–178, §304(d), inserted reference to section 162. · (d)
• Pub. L. 92–178, §304(a)(2)(A), inserted "of the lessor" after "deductions" and "(other than rents and reimbursed amounts with respect to such property)" after "section 162". · (d)
• Pub. L. 92–178, §304(a)(2)(B), added par. (7). · (d)

1969

• Pub. L. 91–172 added subsec. (d). Former subsec. (d) redesignated (e). · (d), (e)

1964

• Pub. L. 88–272 included the purchase of educational services, and defined "educational services". · (b)

1963

• Pub. L. 88–9, §1(a), (c), added subsec. (c), redesignated former subsec. (c) as (d) and added par. (5). · (c), (d)