Small businesses are the foundation of the American economy. But 9 out of 10 small businesses will face a massive tax hike at the end of the year if Congress fails to act.
The 20% Small Business Deduction was created as part of the 2017 tax law to level the playing field between small businesses and larger corporations.
As of May 2025, the Budget Resolution, named the One Big Beautiful Bill, passed the House of Representatives. The bill renews the 20% Small Business Deduction, makes it permanent, and increases its value from 20% to 23%. The bill now goes to the Senate, where additional debate will take place. For this to become law, there is still work to be done.
Thank you for continuing to send the message that the most important action that Congress can take this year is to make the Small Business Deduction permanent!
Personalized Messages Get the Attention of Lawmakers
Nearly half (48%) of small business owners report the uncertainty of the expiring 20% Small Business Deduction impacting current or future business plans. Is this you? Use the optional space provided to share your personal message about how you invested your tax savings and how the tax increase resulting from expiration will negatively impact your business!
In addition to the letter provided by NFIB, consider sharing:
- How much more you could owe in federal income taxes in 2026 if the 20% Small Business Tax Deduction and other current tax relief policies expire at the end of the year? Look at Line 13 on Form 1040 , ask your tax advisor, or use NFIB's Small Business Tax Hike calculator by clicking here https://www.nfib.com/calculator/.
- If the 20% Small Business Deduction goes away:
- What impact does that have on your cash flow? I've used my tax savings to help cover the rising cost of utilities.
- How does that impact your ability to grow? I've used my tax savings to invest in a new truck, which has helped expand my business.
- What would be the impact on your employees? I've used my tax savings to invest in retirement savings for my employees.