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NEW Tools to Highlight 20% Small Business Tax Deduction Benefits in Minnesota

NEW Tools to Highlight 20% Small Business Tax Deduction Benefits in Minnesota

May 22, 2025

NFIB Launches New State-Specific Tools to Highlight Benefits of 20% Small Business Tax Deduction in Minnesota

The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, has released two new digital tools to help small business owners, policymakers, and the public in Minnesota understand the significant economic impact of the 20% Small Business Tax Deduction and what’s at stake if Congress fails to make it permanent.

The new tools include an interactive map that allows users to explore how extending the Small Business Deduction would power job creation and GDP growth in every congressional district across Minnesota. NFIB also launched a tax calculator to provide small business owners in Minnesota with personalized estimates of how much more they could owe in federal income taxes in 2026 if the deduction expires.

Click here to explore job growth and GDP impact across Minnesota. View the interactive map here and the calculator here.

“These new tools give small business owners and elected leaders in Minnesota real data about the economic stakes,” said NFIB Minnesota State Director Jon Boesche. “If Congress fails to act, millions of small businesses across the country—including right here in Minnesota—will face a massive tax hike. That means fewer jobs, less investment, and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.”

According to NFIB’s interactive map, if the deduction is extended, Minnesota could see an increase of 48,626 jobs and $2,946,000,000 in GDP over the next decade. The district-level data allows lawmakers and local leaders to understand exactly how small businesses in their communities stand to gain when the tax deduction is made permanent —or lose if it is not.

The tax calculator helps individual small business owners project their potential tax increase if the deduction is not extended. For example, a Minnesota small business owner with a personal income of $75,000 and qualified business income of $150,000 could see a tax increase of more than $13,000, depending on their full financial profile.

NFIB also applauds the U.S. House of Representatives’ passage of the One Big Beautiful Act this morning. The One Big Beautiful Bill Act is one of the most pro-small business pieces of legislation in recent history. Congress has a historic opportunity to provide over 33 million small business owners with permanent tax relief.

To explore the tools and learn more about how NFIB is working to protect Minnesota’s small businesses, visit: www.SmallBusinessDeduction.com

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NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

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