SANTA FE (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 172,113 small businesses in New Mexico now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, New Mexico is projected to gain 7,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $308 million for the first decade and $636 million per year beyond 2035.

View the report for New Mexico here.

“Small businesses tend to pay more in taxes than their large corporate competitors, but the 20% Small Business Deduction allows them to keep more of their hard-earned money and decide how to reinvest it back into their business,” NFIB State Director Jason Espinoza said. “Before Congress acted, small business owners were facing a massive tax hike. Now, they have long-term tax certainty. Today, Main Street New Mexicans are better positioned to serve their customers, take care of their employees, and support our local communities.”

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 New Mexico’s report, CLICK HERE.