FOR IMMEDIATE RELEASE
Contact: Michael Iosua, Hawaii State Director, miosua@mkadvocacy.com
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

HONOLULU, 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 144,375 small businesses in Hawaii now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, Hawaii is projected to gain 4,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $210 million for the first decade and $433 million per year beyond 2035.

View the report for Hawaii here.

“It’s important for policymakers in Honolulu to remember that more than 80% of small businesses are organized as pass-through entities for federal tax purposes and report their business earnings and expenses on their personal income tax forms,” said Michael Iosua, state director for NFIB in Hawaii. “The 20% Small Business Tax Deduction has been a tremendous benefit, enabling Main Street entrepreneurs the ability to hire more workers, give raises to ones currently under their employ, purchase new equipment, and for some, the ability just to remain solvent. This is why it is so very vital the Hawaii Legislature pass and the governor sign House Bill 2329, which would conform the state’s tax code to the benefits offered in the federal deduction.”

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.

Keep up with the latest Hawaii small business news at www.nfib.com or by following NFIB Hawaii on X @NFIB_HI.

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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 a nonprofit, nonpartisan, and member-driven association. Since its 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 Hawaii
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