Section 163(j) of the Internal Revenue Code (Code) was added in connection with the 2017 tax reforms and imposes limits on business interest deductions. Troutman Pepper recently hosted a webinar examining how Section 163(j) applies to partnerships generally and in the context of trading partnerships specifically. The panelists also discussed the potential impact of new legislative proposals. The program featured Troutman Pepper attorneys Steven D. Bortnick and Morgan Klinzing. This first article in a two-part series discusses how the tax provisions seek to limit U.S. earnings stripping, new limitations on business interest deductions and ways they are applied in the context of different types of partnership structures. The second article will provide an overview of how Section 163 applies to deductions in connection with trading partnerships, as well as the application of recent legislative proposals to controlled foreign corporations. For additional commentary from Bortnick, see “Tax Expert Provides Insight Into Recent U.S. Tax Court Decision on Taxation of Foreign Investments in U.S. Partnerships” (Dec. 7, 2017).