FOR IMMEDIATE RELEASE

HARTFORD, CT (April 15, 2026) – 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 381,129 small businesses in Connecticut now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, Connecticut is projected to gain 14,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $887 million for the first decade and $1.8 billion per year beyond 2035.

View the report for Connecticut HERE.

“Connecticut small business owners are appreciative this tax season now that the 20% Small Business Deduction has been made permanent and owners can take full advantage of the long-term tax certainty,” said NFIB Connecticut State Director Andy Markowski. “Making the Small Business Deduction permanent was a historic accomplishment for Main Street businesses, but owners caution Connecticut lawmakers to avoid legislation that would derail these tax savings at the state level.”

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 Connecticut’s report, visit here.

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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.