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 880,366 small businesses in Virginia now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, Virginia is projected to gain 33,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $1.9 billion for the first decade and $3.94 billion per year beyond 2035.

View the report for Virginia here.

“Small businesses are under a tremendous amount of financial pressure right now. The 20% Small Business Deduction eases some of the pressure and enables owners to reinvest in their businesses,” NFIB State Director Julia Hammond said. “Making it permanent removed a lot of uncertainty going forward and put owners in a better position to serve their employees, their customers, and their 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 Virginia’s report visit SmallBusinessDeduction.com.