A tax break that served as a lifeline and springboard for small businesses throughout the last eight years is set to expire at the end of 2025, potentially placing a larger burden on locally owned companies.
Many small businesses became eligible for a qualified business income deduction – allowing them to deduct up to 20% of their income from taxes – under the 2017 Tax Cuts and Jobs Act aimed at leveling the playing field between large corporations and small firms.
Now, nine out of 10 small businesses will face a large tax hike if the deduction expires without action from Congress, according to the National Federation of Independent Business (NFIB)…