With the signing of the One Big Beautiful Bill Act into law, the National Federation of Independent Business (NFIB) expressed gratitude to President Trump and Congress for making the 20% Small Business Tax Deduction permanent. This move prevents a significant tax increase on small businesses.
Brad Close, NFIB President, stated, "President Trump and Congress have the gratitude of 33 million American small business owners, who are all breathing a huge sigh of relief. This bill provides them the certainty and level playing field needed to grow, hire new workers, provide for their employees, and give back to their communities." He added that this legislation strengthens the economy's foundation and benefits not only small businesses but also the entire country.
The Small Business Tax Deduction has been in place since 2017, allowing small businesses to deduct up to 20% of their business income. Without action from Congress, this deduction was set to expire at year's end. The new act ensures permanent tax relief for America's small businesses.
In addition to making the deduction permanent, the One Big Beautiful Bill Act includes other provisions beneficial to small businesses:
- It increases Section 179 Small Business Expensing Cap from $1.25 million to $2.5 million.
- It makes permanent the marginal rate cuts introduced in 2017.
- It increases and makes permanent the Small Business Estate Tax Exemption with thresholds set at $15 million for individual filers and $30 million for joint filers.
For over eight decades, NFIB has advocated for America's small and independent business owners across Washington D.C., and all state capitals. As a nonprofit organization founded in 1943, NFIB remains dedicated exclusively to supporting these enterprises.
