NFIB Thanks Congress for Passing Landmark Small Business Tax Relief Bill

July 3, 2025

One Big Beautiful Bill Act Makes Small Business Deduction Permanent, Achieving NFIB’s Top Legislative Priority

WASHINGTON, D.C. (July 3, 2025) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, applauds Congress for passing the One Big Beautiful Bill Act, which includes a permanent extension of the 20% Small Business Tax Deduction, achieving NFIB’s top legislative priority to stop the small business tax hike.

“This is a landmark victory for America’s small businesses,” said Brad Close, NFIB President. “By making the Small Business Tax Deduction permanent, Congress has delivered the certainty that Main Street needs, freeing small business owners to continue to create jobs, grow their business and invest in their communities. Passing the One Big Beautiful Bill Act is a clear message that lawmakers understand the vital role small businesses play in our economy and our communities. We commend both chambers of Congress for coming together to pass this historic, pro-small business legislation and look forward to President Trump signing his Big, Beautiful Bill into law, delivering on a promise to provide permanent tax relief to over 33 million small business owners.”

The 20% Small Business Deduction, originally enacted as part of the 2017 Tax Cuts and Jobs Act, was set to expire at the end of 2025. Without Congressional action, millions of small businesses would have faced a significant tax increase. 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.

###

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.

Topics:

Taxes

State:

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida