The Small Business Tax Deduction has been a top priority for NFIB and small business owners across the country since its implementation with the Tax Cuts & Jobs Act in 2017. The deduction was set to expire at the end of this year, and the signing of the One Big Beautiful Bill Act into law prevents a huge tax hike for small businesses.  

Small business owners will now have significant tax relief and freedom to invest in their businesses and employees. The One Big Beautiful Bill Act also includes several additional wins for small business owners: 

• Increases Section 179, Small Business Expensing Cap from $1.25 million to $2.5 million. This allows small businesses to fully expense business equipment purchases in the first year. 

• Makes the 2017 marginal rate cuts permanent. Without this provision, five out of seven marginal (individual) income tax rates will rise at the end of the year. 

• Increases and makes permanent the Small Business Estate Tax Exemption. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers. 

Getting this bill across the finish line was only made possible by the tireless efforts and advocacy from small business owners nationwide. More than 33 million small businesses will be impacted by this legislation, and no small businesses will see a tax hike next year due to the passing of the One Big Beautiful Bill Act.  

Learn more about the economic impact the Small Business Deduction will have in its first ten years. Take Action: Let Congress know what this landmark win to make the Small Business Tax Deduction permanent means for your small business.