As members of the Indiana General Assembly convene for session today, small business owners again remind lawmakers of the importance of several federal tax provisions, including the Small Business Deduction. With Congress making the Small Business Deduction permanent, Indiana can see an increase of 52,546 jobs and $2,793,000,000 in GDP over the next decade.

Lawmakers will be considering legislation that would conform Indiana’s tax code with the new federal tax provisions to adopt for Tax Year 2025. The Small Business Deduction allows small businesses nationwide to deduct up to 20% of their business income and was a top federal priority for NFIB members.

“Small business owners understand the importance of conforming Indiana’s tax code with the new federal provisions, but not at the expense of Main Street,” said NFIB Indiana State Director Natalie Carroll. “It is crucial that the General Assembly allows Indiana’s small businesses to take full advantage of the Small Business Deduction and the other beneficial tax provisions that will allow Indiana’s Main Street to thrive.”

Randy Ballinger, owner of Walnut Creek Golf Courses in Marion said, “The 20% tax break for small businesses will help our children continue to operate and invest in our 36-hole operation in a positive financial way to keep our family business to transfer from generation to generation and continue to help Grant County financially.”

The federal tax legislation also allowed all research and development costs to be immediately deducted, which allows small businesses to immediately deduct domestic research or experimental expenditures paid or incurred in the tax years beginning after Dec. 31, 2024.

Mike Sponseller, Indiana small business owner of Precision Fabrication Inc., said, “The R&D tax credits Congress passed this summer are a huge win for small businesses. Thank you to Senator Jim Banks and Senator Todd Young for working to make it retroactive for Indiana’s small businesses.”

NFIB will remain engaged as the session begins to ensure Indiana’s conformity decisions will allow small businesses to grow and thrive. We will keep members updated and provide opportunities for input as lawmakers prepare to debate these provisions.

NFIB launched several advocacy campaigns urging Congress to make the Small Business Deduction permanent.