The National Federation of Independent Business (NFIB) has introduced two digital tools aimed at illustrating the economic impact of the 20% Small Business Tax Deduction in Minnesota. The NFIB, a prominent small business advocacy group, hopes these resources will assist business owners, policymakers, and the public in understanding the potential effects if Congress does not make this deduction permanent.
One tool is an interactive map that shows how extending the Small Business Deduction could influence job creation and GDP growth across Minnesota’s congressional districts. Another is a tax calculator designed to provide personalized estimates for small business owners regarding their potential federal income tax obligations if the deduction expires in 2026.
“These new tools give small business owners and elected leaders in Minnesota real data about the economic stakes,” stated Jon Boesche, NFIB Minnesota State Director. “If Congress fails to act, millions of small businesses across the country—including right here in Minnesota—will face a massive tax hike. That means fewer jobs, less investment, and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.”
According to NFIB’s interactive map, extending the deduction could lead to an increase of 48,626 jobs and $2.946 billion in GDP over ten years in Minnesota. This district-level data helps lawmakers understand how local businesses might benefit from making this tax deduction permanent—or what they might lose if it is not.
The tax calculator offers projections on potential tax increases for individual small business owners if the deduction ends. For instance, a Minnesota small business owner with a personal income of $75,000 and qualified business income of $150,000 might see their taxes rise by over $13,000 based on their complete financial profile.
NFIB also expressed approval for the recent passage of the One Big Beautiful Act by the U.S. House of Representatives. This legislation is considered one of the most supportive measures for small businesses in recent times and presents an opportunity for lasting tax relief for over 33 million small business owners.
For further information on these tools or NFIB’s efforts to support Minnesota’s small businesses, visit www.SmallBusinessDeduction.com.
