The National Federation of Independent Business (NFIB) supports the One Big Beautiful Bill Act because it is one of the most pro-small business pieces of legislation in recent history.

The bill prevents a massive tax hike on over 33 million small business owners, while also providing a tax cut for most small business owners. Here are four major wins in the legislation that will specifically impact America’s small businesses:

Increases and makes permanent the Small Business Deduction. The 20% small business tax deduction (also known as the section 199a deduction), which was scheduled to expire at the end of the year, is increased to 23% and made permanent in the bill. In 2021, 25.9 million small businesses claimed the deduction.

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, 5 out of 7 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.

“The One Big Beautiful Bill Act is one of the most pro-small business pieces of legislation in recent history,” said NFIB President Brad Close. “NFIB urges Congress to continue to focus on small business, especially the permanent and expanded Small Business Deduction that is in the One Big Beautiful Bill Act and pass it as soon as possible.”