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May 6, 2026
Increasing the Small Business Deduction would benefit small businesses, their employees, and local communities
What it means: NFIB celebrates the success of the 20% Small Business Tax Deduction being made permanent and supports new legislation to increase it to 23%.
Our take: Making the Small Business Tax Deduction permanent provided much-needed tax certainty for small businesses. Increasing the deduction and providing additional tax relief for more small businesses will boost economic growth and investments for millions of small businesses.
Take Action: Share with lawmakers how the 20% Small Business Tax Deduction benefits your small business!
The benefits small businesses across the nation are experiencing due to the Small Business Tax Deduction being made permanent are integral to job creation and economic growth. Results from NFIB’s state-specific report show that making the Small Business Tax Dedication permanent frees up resources for small business owners to better serve their business, employees, and the local communities they support.
NFIB President Brad Close wrote in-depth on the impact of making the Small Business Tax Deduction permanent in an opinion editorial in the Washington Times. “By leveling the playing field for small businesses and allowing them to keep more of their hard-earned money in the business, the Small Business Deduction did what it was intended to do,” Close wrote.
To add to the momentum of last year’s historic win, NFIB sent a letter to the U.S. House urging members of Congress to support the Small Business Tax Cut Act of 2026. This tax relief bill would increase the Small Business Tax Deduction from 20% to 23% and expand eligibility to claim the deduction. This expansion will bolster investments small business owners are making following last year’s tax package and will allow more money to stay in the business instead of being sent to Washington, D.C. by way of taxes.
Making the Small Business Deduction permanent was NFIB’s top priority for the past seven years, and this historic victory impacted more than 33 million small businesses nationwide.
Take Action: Record a short video to send to Congress on how your business plans to use tax savings from the Small Business Tax Deduction.
Get to know NFIB
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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