Private equity industry leaders are gearing up to advocate for the inclusion of "DA" – referring to depreciation and amortization – in the formula used to calculate tax deductions for businesses with debt. This adjustment could lead to significant tax savings for heavily indebted companies, benefitting private equity firms that own them by potentially increasing returns. The move, spearheaded by influential lobbyists from firms like Blackstone Inc. and KKR & Co., could boost tax deductions by as much as 15%, generating advantages for businesses that have borrowed funds for their operations. By collaborating with organizations such as the National Association of Manufacturers, private equity lobbyists aim to secure congressional backing for the initiative, aligning their cause with broader economic interests like boosting US manufacturing, which is part of President Donald Trump's agenda. This strategic alliance allows private equity to depict the issue as extending beyond financial gains for dealmakers, thereby garnering support from a wider spectrum of stakeholders.