Among other things, the U.S. tax package slashed the federal corporate income tax rate from 35 per cent to 21 per cent, allowed for full expensing of investments in machinery and equipment and introduced new international tax rules. (thebusinesscouncil.ca)
Such a incentive to borrow may be undesirable, which is why the 2005 Tax Reform Panel recommended accompanying full expensing with the elimination of the interest deduction (Howard Gleckman of the Tax Policy Center recently explained this point in more detail). (crfb.org)
Both plans have provisions that allow full expensing for all capital investment, but in general, a company would have to forgo any deduction for net interest expense. (entrepreneur.com)