The Arizona Legislature began its 2026 session on January 12. Chad Heinrich, State Director for the National Federation of Independent Business (NFIB) in Arizona, hosted a virtual event to outline legislative priorities for small business owners and highlight NFIB’s focus during this period.
“NFIB is your voice of small business in Washington, D.C. and in every state capitol. As the state director for Arizona, I’m your boots on the ground lobbyist and advocate for NFIB here in Phoenix,” Heinrich said. “Keep an eye on your inbox, where you’ll see several action alerts come through as bills make their way through the process.”
Heinrich encouraged members to identify their legislators both where they live and where their businesses are located and to discuss key issues with them.
One major priority is aligning Arizona’s tax code with recent federal reforms. If the state does not update its tax laws accordingly, small businesses may encounter higher taxes, more administrative work, and fewer resources for investment or hiring. Tax conformity is seen as a way to simplify filings and support business planning.
NFIB Arizona is working with lawmakers to bring the state tax code into line with federal changes enacted in 2025.
Another issue under review involves healthcare costs. Small business owners have long cited health insurance expenses as a primary concern. The organization is monitoring legislation that would give small employers—those with two to fifty employees—a nonrefundable $400 per employee state income tax credit if they contribute at least $400 annually to an individual coverage health reimbursement arrangement (ICHRA).
Credit card swipe fees are also being addressed. In 2023, Arizona businesses and consumers paid over $217 million annually in interchange fees to out-of-state banks when collecting taxes for government agencies. Representative Khyl Powell has introduced a bill that would restrict swipe fees so they apply only to goods or services sold by merchants—not on sales taxes collected for government entities. NFIB supports this measure.
Heinrich emphasized the importance of member advocacy: “Direct advocacy in Phoenix, along with the help of our members who actively reach out and voice their concerns with lawmakers, makes a big difference! Have questions or want to get more involved? Reach out to your Grassroots Manager, Kylie Barber.”
The National Federation of Independent Business – Arizona continues its role as an advocate by providing legislative updates and resources tailored for local entrepreneurs (official website). The organization helps small business owners navigate policy changes while promoting economic growth (official website). Through tools, research, compliance guidance, and opportunities for direct involvement (official website), NFIB enables these owners to participate actively in shaping policy decisions that affect their operations (official website).
