State-Specific Tools Highlight Small Business Tax Deduction Benefits
May 28, 2025 05:00PM ● By National Federation of Independent Business News ReleaseNORTHERN CALIFORNIA (MPG) - The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, has released two new digital tools to help small business owners, policymakers and the public in California. These tools help with understanding the significant economic impact of the 20% Small Business Tax Deduction and what’s at stake if Congress fails to make it permanent.
The new tools include an interactive map that allows users to explore how extending the Small Business Deduction would power job creation and gross domestic product (GDP) growth in every Congressional district across California. The National Federation of Independent Business also launched a tax calculator to provide small business owners in California with personalized estimates of how much more they could owe in federal income taxes in 2026 if the deduction expires.
“These new tools give small business owners and elected leaders in California real data about the economic stakes,” said John Kabateck, state director for National Federation of Independent in California. “If Congress fails to act, millions of small businesses across the country, including right here in California, will face a massive tax hike. That means fewer jobs, less investment and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.”
“We also applaud the United States House of Representatives passing the One Big Beautiful Act this morning. The One Big Beautiful Bill Act is one of the most pro-small business pieces of legislation in recent history, and Congress has a historic opportunity to provide more than 33 million small business owners with permanent tax relief,” said Kabateck.
According to National Federation of Independent Business’ interactive map, if the deduction is extended, California could see an increase of 272,292 jobs and $20.2 billion in gross domestic product more than the next decade. The district-level data allow lawmakers and local leaders to understand exactly how small businesses in their communities stand to gain when the tax deduction is made permanent or lose if it is not.
The tax calculator helps individual small business owners project their potential tax increase if the deduction is not extended. For example, a California small business owner with a personal income of $75,000 and qualified business income of $150,000 could see a tax increase of more than $13,000, depending on their full financial profile.
To explore the tools and learn more about how National Federation of Independent Business is working to protect California’s small businesses, visit SmallBusinessDeduction.com.
View the interactive map at nfib.com/tcja-state/ca/ and the calculator nfib.com/calculator/.
Keep up with the latest California small-business news at nfib.com. Follow the National Federation of Independent Business on X @NFIB_CA and on Facebook @NFIB.CA.
The National Federation of Independent Business is a nonprofit, nonpartisan and member-driven association. Since our founding in 1943, the National Federation of Independent Business has been exclusively dedicated to small and independent businesses and remains so today. For more information, visit nfib.com.

















