The National Federation of Independent Business announced on Apr. 15 a new report detailing the economic impact of making the 20% Small Business Tax Deduction permanent for Delaware’s small businesses. The organization said this change will benefit over 111,000 small businesses in the state and outlines additional federal tax relief measures recently signed into law.
The topic is important because it affects how much money small business owners can retain and reinvest, as well as broader economic growth in Delaware. According to projections cited by NFIB, if the deduction remains in place, Delaware could see an increase of about 4,000 jobs annually over the next decade. Additionally, annual gross domestic product (GDP) could rise by $233 million during that period and by $482 million per year after 2035.
Mike O’Halloran, NFIB Delaware State Director, said: “By making the Small Business Deduction permanent, Delaware small business owners can now keep more of their hard-earned money and decide how to reinvest it back into their business.” O’Halloran also said: “Small business owners have more tax certainty this Tax Day, and we are hopeful that Delaware lawmakers don’t impose new tax hikes that will undermine this historic small business achievement.”
Since its introduction in 2017, the Small Business Tax Deduction has allowed eligible businesses to deduct up to one-fifth of their income. This policy was set to expire at the end of 2025 without further legislative action. The deduction was made permanent after Congress passed legislation that President Trump signed into law on July 4, 2025.
The National Federation of Independent Business advocates for small and independent business owners by promoting growth-oriented policies and offering resources according to the official website. The organization extends its efforts across Delaware to tackle local concerns according to its website. It mobilizes members on key legislation and addresses challenges such as taxes and labor issues according to its website. Members receive educational materials, assistance with running their businesses, and legislative alerts according to its website. The group operates within the advocacy sector specifically supporting smaller enterprises according to its website, with primary operations throughout Delaware according to its website.
Looking ahead, NFIB says these changes provide long-term certainty for entrepreneurs facing competition from larger corporations. More information about advocacy efforts related to these policies is available through NFIB’s resources.
