FOR IMMEDIATE RELEASE

TRENTON, NJ (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 1.1 million small businesses in New Jersey now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, New Jersey is projected to gain 38,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $2.3 billion for the first decade and $4.8 billion per year beyond 2035.

View the report for New Jersey HERE.

“New Jersey small business owners can breathe a sigh of relief this Tax Day when it comes to their federal tax burden,” said NFIB New Jersey State Director Eileen Kean. “For the past eight years, small businesses’ top priority in Congress was to make the federal 20% Small Business Tax Deduction permanent and prevent a massive tax hike on Main Street businesses. Locking it in last year gave local New Jersey small businesses the freedom and certainty they needed to reinvest in their shops and hometown communities. It also levels the playing field for small businesses against their large corporate competitors “

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 Jersey’s report, visit here.

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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 nonprofit, nonpartisan, and member-driven. 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.