WASHINGTON, D.C. (April 15, 2024) – The National Federation of Independent Business (NFIB), representing small business owners, has called on Congress to prioritize the Small Business Deduction on Tax Day 2024. In a statement issued by NFIB President Brad Close, small business owners emphasized the importance of making the 20% Small Business Deduction permanent.
President Close stated, "On this Tax Day, small business owners want to see Congress take action and make the 20% Small Business Deduction permanent. Unlike their larger competitors, small business owners are at risk of a significant tax hike if the Small Business Deduction expires in 2025. As small businesses represent nearly half of the GDP, passing the Main Street Tax Certainty Act should be a top priority for Congress and the administration. We are encouraged that this important bipartisan legislation has been introduced in both Chambers and urge Congress to pass it."
The Small Business Deduction, also known as Section 199A, allows small businesses organized as pass-throughs such as S corporations, LLCs, sole proprietorships, or partnerships to deduct up to 20% of qualified business income. This deduction is currently scheduled to expire in 2025.
NFIB has outlined its "Top 10 Policy Priorities for 2024," with making the Small Business Deduction permanent listed as the top priority. The Main Street Tax Certainty Act, introduced in the U.S. Senate by Senator Steve Daines (R-MT) and in the U.S. House by Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX), aims to make the 20% Small Business Deduction a permanent fixture.
Small business owners are hopeful that Congress will heed their call and take action to secure the future of the Small Business Deduction, recognizing the vital role that small businesses play in the nation's economy.
