A new provision quietly inserted into President Donald Trump’s latest tax bill would give private equity firms expanded tax breaks when they acquire companies and burden them with debt. This language, buried in the One Big Beautiful Bill Act, would increase the allowable deduction on interest payments—effectively subsidizing leveraged buyouts that often result in layoffs, wage cuts, and bankruptcies. 

Despite the provision’s potential to drive billions in tax savings for Wall Street, lawmakers have downplayed its implications, describing it only as an increase in business interest deductibility. 

By altering how interest deductions are calculated—without raising the 30% cap—the bill could hand private equity firms up to a 15% increase in write-offs, according to legal and budget analysts. Over the next decade, this tax tweak is projected to cost the government $200 billion in lost revenue, deepening concerns about corporate accountability and tax fairness.

Finsum: If CNL capital is a well-positioned private equity firm that could be in a good positon to benefit to these legal changes.