Michigan’s leading advocate for small business, the National Federation of Independent Business (NFIB), expressed disappointment today when the House chose to pass HB 4961, a bill that would “decouple” several provisions of the federal tax code from state taxes contained in the OBBB (One Big Beautiful Bill), causing small businesses to lose tax savings on equipment and property they purchase.

“While we know that this action is due to the unfortunate reality that the Governor and Senate Majority Leader are holding the state budget hostage in order to get additional revenue for roads, we are, nonetheless, dismayed that small businesses got caught in the middle,” said Amanda Fisher, NFIB Michigan State Director.

While many of the items “decoupled” apply to larger businesses, NFIB pointed to Section 179a as being of particular concern. Section 179 allows businesses to deduct the full cost of qualifying equipment or property in the year it is purchased, rather than over time through depreciation. The amount small businesses are able to deduct on their federal taxes doubled from $1.25 million to $2.5 million earlier this year.

“Unfortunately, the tax savings small businesses experience on their federal taxes will be wiped out when filing their state taxes, as well as making state taxes more confusing,” continued Fisher.

NFIB has been instrumental in passing increases in the 179a expensing cap in Congress.