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 1.4 million small businesses in Illinois now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, Illinois is projected to gain 48,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $3.2 Billion for the first decade and $6.6 Billion per year beyond 2035.

View the report for Illinois here.

“Illinois small business owners can breathe a huge sigh of relief this Tax Day,” said NFIB Illinois State Director Noah Finley. “For the past eight years, small businesses’ top priority has been to make the federal 20% Small Business Tax Deduction permanent and prevent a massive tax hike on Main Street businesses. Locking it in last year gave local Illinois shops and service providers the freedom and certainty they needed to reinvest in their hometown 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 Illinois’ report, visit: https://www.nfib.com/news/press-release/2026-state-specific-reports-detail-benefits-of-20-small-business-tax-deduction-becoming-permanent/