The National Federation of Independent Business (NFIB) has expressed approval following Congress's passage of the One Big Beautiful Bill Act. This legislation includes a permanent extension of the 20% Small Business Tax Deduction, which was NFIB’s primary legislative goal to prevent an increase in taxes for small businesses.
Brad Close, President of NFIB, stated, "This is a landmark victory for America’s small businesses. By making the Small Business Tax Deduction permanent, Congress has delivered the certainty that Main Street needs, freeing small business owners to continue to create jobs, grow their business and invest in their communities." He further emphasized that this move by Congress sends a message about the importance of small businesses in both the economy and local communities.
Initially part of the 2017 Tax Cuts and Jobs Act, the deduction was due to expire at the end of 2025. Without intervention from Congress, many small businesses would have faced increased tax burdens. The new act not only makes this deduction permanent but also introduces additional measures beneficial to small businesses:
- The Section 179 Small Business Expensing Cap is raised from $1.25 million to $2.5 million. This change allows businesses to fully expense equipment purchases within the first year.
- Marginal rate cuts from 2017 are made permanent; without this provision, most individual income tax rates would increase by year's end.
- The Small Business Estate Tax Exemption is increased and made permanent with new thresholds set at $15 million for individuals and $30 million for joint filers.
NFIB has been representing independent business owners across America for over eight decades as a nonprofit and nonpartisan organization dedicated solely to advocating on behalf of these enterprises.
