FOR IMMEDIATE RELEASE
Contact: John Kabateck, California State Director, john@kabstrat.com
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

SACRAMENTO, Calif., April 15, 2026—The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released a new report outlining the economic benefits and massive tax savings the 20% Small Business Tax Deduction will bring to the 4.3 million small businesses in California now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, California is projected to gain 141,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $9.8 billion for the first decade and $20.2 million per year beyond 2035.

View the report for California here.

“Call Tax Day a day for celebration and someone is likely to summon the orderlies to escort you back to your room, but this year’s Tax Day is worth positively commemorating for the historic accomplishment Congress achieved in making the Small Business Deduction a permanent feature of the tax code, instead of letting it expire at the end of last year,” said John Kabateck, state director for NFIB in California. “It’s important to remind everyone that more than 80% of small businesses are organized as pass-through entities for federal tax purposes and report their business earnings and expenses on their personal income tax forms. The Small Business Deduction allows them to keep more of their hard-earned money and decide how to reinvest it back into their business.”

Since 2017, the Small Business Tax Deduction has allowed small businesses to deduct up to 20% of their business income. This has empowered them to grow, hire, invest in their employees, and give back to their communities. Without action by Congress, this essential tax deduction was set to expire at the end of 2025.

After being passed by Congress, President Trump signed legislation on July 4, 2025, making the Small Business Tax Deduction permanent. This permanent tax relief means America’s small businesses can use more of their hard-earned money to support their business and employees instead of sending it to their state and federal government. It also provides certainty and levels the playing field for small businesses against their large corporate competitors.

Keep up with the latest California small business news at www.nfib.com. Follow us on X @NFIB_CA and on Facebook @NFIB.CA.

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

NFIB California
915 L St. Ste C-411
Sacramento, CA 95814
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Facebook: @NFIB.CA