The National Federation of Independent Business (NFIB) has expressed its support for the One Big Beautiful Bill Act, citing it as a significant piece of legislation for small businesses. The bill aims to prevent a substantial tax increase on over 33 million small business owners while also providing tax cuts.
Key provisions in the bill include an increase and permanence of the Small Business Deduction. The deduction, known as the section 199a deduction, will rise from 20% to 23% and will not expire. In 2021, approximately 25.9 million small businesses utilized this deduction.
Additionally, the legislation proposes an increase in the Section 179 Small Business Expensing Cap from $1.25 million to $2.5 million, allowing businesses to fully expense equipment purchases in their first year.
The bill also seeks to make permanent the marginal rate cuts established in 2017. Without this measure, five out of seven individual income tax rates are set to rise by year's end. This is particularly relevant as nine out of ten small businesses are pass-through entities that pay regular income tax rates.
Furthermore, the act increases and makes permanent the Small Business Estate Tax Exemption with new thresholds at $15 million for individual filers and $30 million for joint filers.
NFIB President Brad Close stated, “The One Big Beautiful Bill Act is one of the most pro-small business pieces of legislation in recent history.” He urged Congress to focus on small business priorities and pass the act promptly.
