Clinton Budget Proposal Does Not Include Section 133 Repeal

The Administration's proposed budget does not include repeal of section 133 of the Internal Revenue Code. Section 133 allows commercial lenders to deduct 50% on the interest income they receive on loans to majority ESOPs that pass through full voting rights. The repeal is included in the budget passed by Congress. The fate of the proposal now hangs on the broader budget negotiations currently underway.