PHOENIX (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 706,640 small businesses in Arizona now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, Arizona is projected to gain 26,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $1.4 billion for the first decade and $2.9 billion per year beyond 2035.

View the report for Arizona here.

“Making the 20% Small Business Deduction permanent was a landmark win for Main Street — and Arizona small businesses are already seeing that benefit,” NFIB State Director Chad Heinrich said. ”But the conformity fight isn’t over, and every provision Arizona fails to adopt is a tax increase on hardworking small business owners.”

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.

For more information about NFIB’s advocacy efforts and to access Arizona’s report CLICK HERE.