The National Federation of Independent Business announced on April 15 a new report detailing the economic impact and tax savings resulting from the now-permanent 20% Small Business Tax Deduction for Illinois’ 1.4 million small businesses.
This development is significant for many local business owners, as it provides ongoing financial relief and certainty. The deduction’s permanence is expected to support job creation, economic growth, and investment in communities across the state.
According to the report, Illinois could see an increase of 48,000 new jobs annually over the next decade if the deduction remains in place. The state’s gross domestic product is projected to grow by $3.2 billion each year during that period and by $6.6 billion per year after 2035.
“Illinois small business owners can breathe a huge sigh of relief this Tax Day,” said NFIB Illinois State Director Noah Finley. “For the past eight years, small businesses’ top priority has been to make the federal 20% Small Business Tax Deduction permanent and prevent a massive tax hike on Main Street businesses. Locking it in last year gave local Illinois shops and service providers the freedom and certainty they needed to reinvest in their hometown communities.”
Since its introduction in 2017, this deduction has allowed eligible businesses to deduct up to one-fifth of their income from taxes—helping them expand operations, hire staff, invest in employees, and contribute locally. The measure was set to expire at the end of 2025 but was made permanent when President Trump signed legislation passed by Congress on July 4, 2025.
The National Federation of Independent Business bolsters community well-being by promoting the role of small businesses in Illinois according to its official website. The organization represents more than 10,000 members statewide through advocacy at both legislative levels according to its official website. Its efforts extend throughout Illinois as it engages with lawmakers on issues affecting entrepreneurs according to its official website.
Looking ahead, NFIB continues offering advocacy programs designed for member support while advancing priorities important for independent enterprises according to its official website.
