WASHINGTON, D.C. (July 4, 2025) – With the One Big Beautiful Bill Act being signed into law, the National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, thanked President Trump and Congress for making the 20% Small Business Tax Deduction permanent and stopping a massive tax hike on small businesses.

“President Trump and Congress have the gratitude of 33 million American small business owners, who are all breathing a huge sigh of relief. This bill provides them the certainty and level playing field needed to grow, hire new workers, provide for their employees, and give back to their communities,” said Brad Close, NFIB President. “I’m proud of the way small business owners across the country engaged in this debate and helped deliver this historic victory. With the One Big Beautiful Bill Act, President Trump and lawmakers have strengthened the foundation of our economy and provided a boost not just for small businesses, but a boost for the entire country.”

Since 2017, the Small Business Tax Deduction has allowed small businesses to deduct up to 20% of their business income. Without immediate action by Congress, this essential tax deduction was set to expire at the end of the year, raising taxes on millions of small businesses. The One Big Beautiful Bill Act provides permanent tax relief, freeing America’s small businesses to invest in their businesses and employees. Along with making the Small Business Deduction permanent, the One Big Beautiful Bill Act includes additional wins for small businesses:

• Increases Section 179, Small Business Expensing Cap from $1.25 million to $2.5 million. This will allow small businesses to fully expense business equipment purchases in the first year.

• Makes the 2017 marginal rate cuts permanent. Without this provision, five out of seven marginal (individual) income tax rates will rise at the end of the year. Nine out of 10 small businesses are organized as pass-through businesses and pay regular income tax rates rather than the C-corporation rate.

• Increases and makes permanent the Small Business Estate Tax Exemption. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers.

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.