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BY NFIB,
WASHINGTON, D.C. (May 13, 2025) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, sent a letter [6] to leaders of the U.S. House Committee on Ways and Means in support of the Committee’s budget reconciliation proposal ahead of the bill’s markup.
As written, this legislation increases and makes permanent the Small Business Deduction, provides a tax cut for small business owners through lower individual rates, encourages new capital investments, and helps small business owners provide greater health care benefits to their employees.
“Since its inception in 2018, the Small Business Deduction (Section 199a) has empowered 25.9 million small businesses to hire more employees, expand operations, and invest in their local communities,” said Adam Temple, Senior Vice President for Advocacy. “This legislation would renew the deduction, make it permanent, and increase its value from 20%-23%. This bill would not only prevent a massive tax hike on small businesses, but it would also provide a tax cut for tens of millions of small business owners. Making the Small Business Deduction permanent is NFIB’s number one legislative priority and the most important thing Congress can do to help small businesses and their workers.”
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“NFIB is also pleased to see a doubling of Section 179 small business expensing threshold from $1.25 million to $2.5 million. This will encourage small businesses to make new capital investments in their companies. NFIB also commends the committee for making the small business estate tax exemption permanent.
“Lastly, this legislation will, for the first time, help small business owners provide greater health care benefits to their employees, by establishing a small employer health care tax credit of up to $1,200 per employee. This new credit supports small businesses who want to provide health care benefits through an employee contribution without the cost or complexity of a group plan.
“Over 91% of NFIB members support making the expiring small business Tax Cuts and Jobs Act provisions permanent. This legislation will prevent a tax hike on more than 33 million small business owners and reduce the effective tax rates of most small business owners. NFIB applauds the Committee for making small businesses a priority and encourages passage of this important legislation.”
Read the full letter here. [6]