Owners explain how they use the tax deduction to invest in their employees and businesses
WASHINGTON, D.C. (Aug. 24, 2023) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released a new video featuring small business owners from across the country explaining the importance of the 20% Small Business Deduction.
The 20% Small Business Deduction (Section 199A) allows small businesses organized as pass-throughs (S corporations, LLCs, sole proprietorships, or partnerships) the ability to deduct up to 20% of qualified business income and is scheduled to expire in 2025.
Watch NFIB’s new In Their Own Words video here:
“The impact of losing the 20% just means that much less for the growth and development of our company, for hiring staff, benefits, and everything else. We’ll just have to make different choices or raise fees,” said Scott George of Missouri.
“The 20% deduction is critical for our business because over the last year we’ve invested $35,000 back into our business. That’s been able to bump up our inventory, it’s been able to add some infrastructure that was lacking, it’s been able to do some improvements into what we’re trying to do for the good of the community and our customers,” said Jeff Hastings of North Carolina.
NFIB recently launched a campaign urging Congress to pass the Main Street Tax Certainty Act, which would make the 20% Small Business Deduction permanent for small businesses. Learn more at www.SmallBizDeduction.com.