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NFIB Launches New State-Specific Tools to Highlight Benefits of 20% Small Business Tax Deduction in California

NFIB Launches New State-Specific Tools to Highlight Benefits of 20% Small Business Tax Deduction in California

May 22, 2025

Interactive map and calculator

FOR IMMEDIATE RELEASE
Contact: John Kabateck, California State Director, john@kabstrat.com
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

SACRAMENTO, Calif., May 22, 2025—The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, has released two new digital tools to help small business owners, policymakers, and the public in California understand the significant economic impact of the 20% Small Business Tax Deduction and what’s at stake if Congress fails to make it permanent.

The new tools include an interactive map that allows users to explore how extending the Small Business Deduction would power job creation and GDP growth in every congressional district across California. NFIB also launched a tax calculator to provide small business owners in California with personalized estimates of how much more they could owe in federal income taxes in 2026 if the deduction expires.

View the interactive map here and the calculator here.

“These new tools give small business owners and elected leaders in California real data about the economic stakes,” said John Kabateck, state director for NFIB in California. “If Congress fails to act, millions of small businesses across the country—including right here in California—will face a massive tax hike. That means fewer jobs, less investment, and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.

“We also applaud the United States House of Representatives passing the One Big Beautiful Act this morning. The One Big Beautiful Bill Act is one of the most pro-small business pieces of legislation in recent history, and Congress has a historic opportunity to provide over 33 million small business owners with permanent tax relief.”

According to NFIB’s interactive map, if the deduction is extended, California could see an increase of 272,292 jobs and $20.2 billion in GDP over the next decade. The district-level data allow lawmakers and local leaders to understand exactly how small businesses in their communities stand to gain when the tax deduction is made permanent—or lose if it is not.

The tax calculator helps individual small business owners project their potential tax increase if the deduction is not extended. For example, a California small business owner with a personal income of $75,000 and qualified business income of $150,000 could see a tax increase of more than $13,000, depending on their full financial profile.

To explore the tools and learn more about how NFIB is working to protect California’s small businesses, visit: www.SmallBusinessDeduction.com

Keep up with the latest California small-business news at www.nfib.com. Follow us on X @NFIB_CA and on Facebook @NFIB.CA.

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For more than 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 a nonprofit, nonpartisan, and member-driven association. 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.

NFIB California
915 L St. Ste C-411
Sacramento, CA 95814
916-448-9904
NFIB.com
X: @NFIB_CA
Facebook: @NFIB.CA

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NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

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