The National Federation of Independent Business announced on April 15 that a new report details the economic impact of making the 20% Small Business Tax Deduction permanent for Connecticut’s small businesses. The organization said this change will benefit over 381,000 small businesses in the state and lead to significant tax savings.
According to the NFIB, Connecticut could see an increase of 14,000 new jobs each year for the next decade if the deduction remains in place. The state’s gross domestic product is projected to grow by $887 million annually during this period and by $1.8 billion per year after 2035.
Andy Markowski, NFIB Connecticut State Director, said, “Connecticut small business owners are appreciative this tax season now that the 20% Small Business Deduction has been made permanent and owners can take full advantage of the long-term tax certainty.” Markowski also cautioned lawmakers: “Making the Small Business Deduction permanent was a historic accomplishment for Main Street businesses, but owners caution Connecticut lawmakers to avoid legislation that would derail these tax savings at the state level.”
The deduction has allowed small businesses since 2017 to deduct up to one-fifth of their business income. This measure was set to expire at the end of 2025 before Congress passed legislation signed by President Trump on July 4, 2025, making it permanent. The NFIB said this provides more financial certainty and helps smaller companies compete with larger corporations.
The National Federation of Independent Business Connecticut addresses workforce challenges and promotes economic trends to support community vitality according to its official website. It advocates for policies fostering growth among small businesses according to its official website, with leadership from a state director overseeing advocacy efforts according to its official website. The group serves businesses throughout Connecticut according to its official website, influences policies on taxation and regulations affecting these companies according to its official website, and focuses specifically on supporting the state’s small business sector according to its official website.
For more information about NFIB’s advocacy efforts or access to Connecticut’s report, visit their site.
