One Big Beautiful Bill provides multiple tax wins for small businesses, small business organizations say

Small business organizations are celebrating two changes to the tax code written into the “One Big Beautiful Bill” signed by President Donald Trump Friday. 

This includes making the 2017 Small Business Tax Deduction, or 199A 20% deduction, permanent.

“President Trump and Congress have the gratitude of 33 million American small business owners, who are all breathing a huge sigh of relief,” Brad Close, National Federation of Independent Business (NFIB) president, said in a press release. “This bill provides them the certainty and level playing field needed to grow, hire new workers, provide for their employees, and give back to their communities. I’m proud of the way small business owners across the country engaged in this debate and helped deliver this historic victory. With the One Big Beautiful Bill Act, President Trump and lawmakers have strengthened the foundation of our economy and provided a boost not just for small businesses, but a boost for the entire country.”

The Small Business Association (SBA) says preserving the 199A deduction will generate $750 billion in economic growth and create more than 1 million new Main Street jobs. 

“Without the One Big Beautiful bill, 26 million small businesses would have seen their top tax rate double to 43%,” the SBA release says. 

NFIB says other tax wins include the increase of Section 179, or the 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,” the NFIB release says. 

The 2017 marginal rate cuts also were made permanent, it says. 

“Without this provision, five out of seven marginal (individual) income tax rates will rise at the end of the year,” the release says. “Nine out of 10 small businesses are organized as pass-through businesses and pay regular income tax rates rather than the C-corporation rate.”

The bill also makes the Small Business Estate Tax Exemption permanent. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers. 

An email sent by the Family Business Coalition (FBC) to members praised the estate tax, or death tax, exemption. It notes that the exemption thresholds are indexed for inflation. 

“Importantly, this change is made permanent, which means we will no longer face a fiscal cliff where the exemption is scheduled to automatically snap back,” said Palmer Schoenig, FBC president, in the email. “We have made great progress over the past two decades on the death tax (in 2001, the exemption was $675,000 and the rate was 55%), and this latest change ushers in the least-burdensome death tax policy since we constituted the Family Business Coalition.”

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