A new poll released by the National Federation of Independent Business (NFIB) reveals overwhelming support among small business owners for the 20% Small Business Deduction, a tax benefit that has significantly reduced income tax burdens since it was introduced under the 2017 Tax Cuts and Jobs Act (TCJA).
As Congress debated whether to make this deduction permanent, small business owners, CPAs, and tax professionals were closely watching. The One Big Beautiful Bill Act ultimately made the deduction permanent, delivering the outcome the small business community had lobbied for. This blog breaks down what the deduction is, who qualifies, and why this benefit has become a lifeline for entrepreneurs nationwide.
The Section 199A deduction, commonly known as the Qualified Business Income (QBI) deduction, allows eligible owners of pass-through entities—including sole proprietors, LLCs, S-corporations, and partnerships—to deduct up to 20% of their qualified business income on their personal tax return.
For example, if a qualifying small business reports $100,000 in QBI, they may be able to deduct $20,000 before calculating their individual income tax liability.
Business owners structured as S-corporations should also be aware of the at-risk rules for partnerships and S-corporations, which interact with pass-through income and can limit the losses you are able to deduct.
The NFIB's latest polling data reveals:
These findings shaped the conversation in Congress, especially as lawmakers evaluated broader tax code revisions heading into the 2026 tax year.
If you own a small business, especially one structured as a pass-through entity, the 20% QBI deduction can provide:
By reducing your taxable income, the deduction effectively lowers your personal income tax burden without changing your business structure.
Many small business owners use tax savings to reinvest in staff, equipment, or expansion.
Knowing this deduction is permanent helps with long-term financial forecasting and estimated tax payment planning under the extended TCJA framework.
Whether you're launching a business or already running one, Bizora helps you:
Take Action: Plan Ahead for 2026 and Beyond
Now that the 20% Small Business Deduction has been made permanent, it's an ideal time to work with a tax professional to optimize your entity structure and maximize this benefit year after year.
Visit bizora.ai to learn more about our small business compliance tools and how we work with CPAs to optimize your financial outcomes.
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