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ICYMI: New State-Specific Tools Highlight Benefits of 20% Small Business Tax Deduction in Indiana

ICYMI: New State-Specific Tools Highlight Benefits of 20% Small Business Tax Deduction in Indiana

May 30, 2025

Small business owners urge Congress to make the deduction permanent

The National Federation of Independent Business (NFIB), Indiana’s leading small business advocacy organization, has released two new digital tools to help small business owners, policymakers, and the public in Indiana understand the significant economic impact of the 20% Small Business Tax Deduction and what’s at stake if Congress fails to make it permanent.

The new tools include an interactive map that allows users to explore how extending the Small Business Deduction would power job creation and GDP growth in every congressional district across Indiana. NFIB also launched a tax calculator to provide small business owners in Indiana with personalized estimates of how much more they could owe in federal income taxes in 2026 if the deduction expires.

View the interactive map here and the calculator here.

“These new tools give both small business owners and local elected leaders in Indiana a resource to demonstrate the economic stakes of making the Small Business Deduction permanent,” said NFIB Indiana State Director Natalie Robinson. “If Congress fails to act, millions of small businesses nationwide—including right here in Indiana—will face a massive tax hike. That means fewer jobs, less investment, and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.”

According to NFIB’s interactive map, if the deduction is extended, Indiana could see an increase of 52,546 jobs and $2,793,000,000 in GDP over the next decade. The district-level data allow lawmakers and local leaders to understand exactly how small businesses in their communities stand to gain when the tax deduction is made permanent — or lose if it is not.

The tax calculator helps individual small business owners project their potential tax increase if the deduction is not extended. For example, an Indiana small business owner with a personal income of $75,000 and qualified business income of $150,000 could see a tax increase of more than $13,000, depending on their full financial profile.

To explore the tools and learn more about how NFIB is working to protect Indiana’s small businesses, visit: www.SmallBusinessDeduction.com.

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

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