The National Federation of Independent Business (NFIB) announced on April 15 that a new report details the economic benefits and tax savings resulting from the permanent 20% Small Business Tax Deduction for Oregon’s small businesses. The deduction, which was recently made permanent by federal legislation, is expected to affect more than 417,000 small businesses across the state.
According to NFIB, making the Small Business Tax Deduction permanent will provide significant financial relief and planning certainty for small business owners. The organization projects that Oregon could see an annual increase of 18,000 jobs over the next decade if the deduction remains in place. Additionally, annual gross domestic product (GDP) is forecasted to rise by $986 million each year during this period and by $2 billion per year beyond 2035.
Anthony Smith, state director for NFIB in Oregon, said: “Despite the fact that the governor signed a bill into law, just days before Oregonians filed their taxes, that effectively denies over $300 million in immediate state-level tax relief to Oregon families and businesses (SB 1507), we can still be grateful for the helpful boost small business owners received when Congress made the Small Business Deduction permanent, instead of letting it expire at the end of last year.”
Smith also said: “As rare as it sounds that something optimistic could surround Tax Day, the new permanency of the Small Business Deduction allows Main Street entrepreneurs to better plan for hiring, giving raises, and buying new equipment to expand their enterprises. More than 80% of small businesses are organized as pass-through entities for federal tax purposes and report their business earnings and expenses on their personal income tax forms. The Small Business Deduction allows them to keep more of their hard-earned money and decide how to reinvest it back into their business.”
The deduction has been available since 2017 but was set to expire at the end of 2025 without congressional action. Legislation passed by Congress was signed into law by President Trump on July 4, making this provision permanent.
NFIB describes itself as a nonprofit association advocating for independent business owners nationwide since its founding in 1943.
