The National Federation of Independent Business announced on April 15 that a new report details the benefits of making the 20% Small Business Tax Deduction permanent for the nearly 293,000 small businesses in Arkansas. The report also outlines other federal tax relief measures that have been signed into law.
According to NFIB, keeping this deduction is expected to bring significant economic gains to Arkansas. Projections show the state could see an increase of about 10,000 jobs each year over the next decade and an annual gross domestic product boost of $440 million for ten years, rising to $909 million per year after 2035.
“The 20% Small Business Deduction helps level the playing field between Main Street and their big box store competitors, allowing small business owners to keep more of their hard-earned money and decide how to reinvest it back into their business,” said NFIB State Director Katie Burns. “Before Congress acted, small business owners were facing a massive tax hike. Now, they have long-term tax certainty. Today, they are better positioned to serve their customers, take care of their employees, and support our local communities.”
Since its introduction in 2017, this deduction has allowed qualifying businesses to deduct up to one-fifth of their income from taxes. Without recent legislative action by Congress, it was set to expire at the end of 2025. The legislation making it permanent was signed into law on July 4, 2025.
The National Federation of Independent Business – Arkansas empowers small business owners to shape policy and promote economic growth in their communities according to its official website. The organization advocates for independent businesses through resources such as legislative updates and policy support as noted online. It provides services across all states including dedicated support in Arkansas according to its website.
In addition to advocacy efforts at both state and national levels as described by NFIB, the group supplies tools and compliance guidance tailored for small businesses as stated online. Operating as an advocacy group focused on advancing policies benefiting small enterprises remains central for NFIB-Arkansas according to its website.
