The National Federation of Independent Business announced on Apr. 15 that a new report outlines the economic impact of making the 20% Small Business Tax Deduction permanent for Virginia’s small businesses. The organization said this change will benefit over 880,000 small businesses in the state and includes several other federal tax relief measures that have recently become law.
According to the NFIB, Virginia could see an increase of 33,000 new jobs each year for the next decade if the deduction remains in place. The report also projects an annual gross domestic product (GDP) growth of $1.9 billion during the first ten years and $3.94 billion per year after 2035.
Julia Hammond, NFIB State Director, said, “Small businesses are under a tremendous amount of financial pressure right now. The 20% Small Business Deduction eases some of the pressure and enables owners to reinvest in their businesses.” Hammond added, “Making it permanent removed a lot of uncertainty going forward and put owners in a better position to serve their employees, their customers, and their communities.”
The Small Business Tax Deduction has allowed eligible businesses to deduct up to one-fifth of their income since its introduction in 2017. Without recent legislative action by Congress, this provision was set to expire at the end of 2025.
President Trump signed legislation on July 4, 2025 that made this deduction permanent following congressional approval. The NFIB said this move provides more certainty for business owners and helps them compete with larger corporations by allowing them to retain more earnings.
For further details about advocacy efforts or access to Virginia’s full report, readers can visit SmallBusinessDeduction.com.
