The National Federation of Independent Business (NFIB) is emphasizing the positive impact of making the 20% Small Business Tax Deduction permanent in Arizona. In a column published in the Phoenix Business Journal, NFIB State Director Chad Heinrich explained that this measure is expected to significantly benefit the state’s economy.
“An NFIB-commissioned study by EY found that the Small Business Tax Deduction will increase Arizona’s economic activity by more than $1.4 billion annually, resulting in the creation of 26,000 jobs each year,” Heinrich wrote. “That means more good-paying jobs for hardworking Arizonans.”
Heinrich noted that earlier this year, Congress and President Trump took action to prevent a planned tax increase that would have affected over 33 million small business owners nationwide at the end of 2025. He described the permanent extension of the deduction as a key element of the new tax law, aimed at fostering economic growth for Arizonans.
Heinrich also pointed out that, unlike tax cuts for large corporations, the Small Business Tax Deduction was previously set to expire at the end of the year without Congressional intervention. He said that providing long-term tax certainty has been a top priority for NFIB members for nearly ten years.
According to Heinrich, the legislation not only made the deduction permanent but also extended the 2017 marginal tax rates, preventing potential tax increases of up to 4% for small businesses and their employees.
Heinrich concluded by thanking Congress and President Trump for their support of small business owners and encouraged others to reach out to elected officials about the importance of the deduction.
