NFIB, the nation’s leading small business advocacy organization, released a new report outlining the benefits the 20% Small Business Tax Deduction will bring to Georgia if made permanent.

The report also spotlights that the 1.3 million small businesses in Georgia could face significantly higher taxes if Congress does not make the 20% Small Business Tax Deduction permanent this year. The report outlines the severe consequences for small businesses in Georgia and the broader U.S. economy that would result from the provision’s expiration, highlighting potential economic slowdown and increased financial strain on local businesses.

The report also highlights a stark contrast in tax rates between small businesses and their larger corporate competitors if the deduction is not made permanent. In Georgia, the C-Corp tax rate would remain at 26.39%, while the small business rate would surge to 45.09%.

However, making the deduction permanent would lead to significant economic benefits, leaving the small business tax rate on a level playing field with its competitors. Additionally, Georgia is projected to gain 39,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $2.01 billion for the first decade and $4.16 billion per year beyond 2035.

View the report for Georgia here.

“Main Street businesses cannot afford to lose this deduction,” NFIB State Director Hunter Loggins said. “Small businesses are dealing with rising prices, labor issues, and growing economic uncertainty. If this deduction is allowed to expire at the end of 2025, they would be faced with a big increase in taxes that would make it harder for them to operate and create jobs. This dedication has been in place since 2017, so many small businesses have never operated without it.”

The 20% Small Business Tax Deduction, a key provision of the Tax Cuts and Jobs Act of 2017, has empowered millions of small business owners to expand, hire employees, and increase wages. If Congress does not act to make it permanent this year, nine out of 10 small businesses will face a significantly higher tax burden, threatening jobs and economic stability nationwide.