The National Federation of Independent Business (NFIB) has introduced two digital tools aimed at helping small business owners, policymakers, and the public in North Carolina understand the economic impact of the 20% Small Business Tax Deduction. The tools also highlight potential consequences if Congress does not make this deduction permanent.
The first tool is an interactive map that shows how extending the Small Business Deduction could boost job creation and GDP growth across North Carolina’s congressional districts. The second tool is a tax calculator designed to provide personalized estimates for small business owners on how much more they might owe in federal income taxes in 2026 if the deduction expires.
“Losing this essential deduction would be a major blow to North Carolina’s small businesses,” said NFIB State Director Gregg Thompson. “That’s why Congress needs to act soon to make the 20% Small Business Deduction permanent.”
According to NFIB’s data, extending the deduction could result in over 70,000 new jobs and $3.8 billion added to North Carolina’s GDP over ten years. This district-level information helps lawmakers and local leaders understand the potential gains or losses for small businesses in their areas.
The tax calculator allows individual business owners to estimate their potential tax increase if the deduction is not extended. For instance, a small business owner with a personal income of $75,000 and qualified business income of $150,000 might face a tax increase exceeding $13,000 based on their financial profile.
Additionally, NFIB praised the U.S. House of Representatives for passing the One Big Beautiful Act earlier today. This legislation is considered one of the most pro-small business measures recently passed and offers Congress an opportunity to provide permanent tax relief for over 33 million small business owners.
For more information about these tools and NFIB’s efforts to support North Carolina’s small businesses, visit www.SmallBusinessDeduction.com.
