The National Federation of Independent Business (NFIB) announced on April 15 that a new report details the economic benefits and significant tax savings resulting from the permanent 20% Small Business Tax Deduction for Montana’s small businesses. The organization said this change will affect more than 141,000 small businesses in the state.
According to NFIB, making the deduction permanent is expected to create about 5,000 new jobs annually over the next decade in Montana. The state’s gross domestic product is projected to increase by $244 million each year for the first ten years and by $503 million per year after 2035.
Ronda Wigger, state director for NFIB in Montana, said, “Tax Days are rarely causes for celebration, but this year’s is a little bit brighter for small business owners thanks to Montana’s congressional delegation, especially Sen. Steve Daines, which succeeded in making the Small Business Tax Deduction permanent, instead of letting it expire at the end of last year.” Wigger also noted that changes made by both Congress and the Montana Legislature provide more certainty for local business owners when making decisions related to hiring or expansion. “Most of the elected officials Montanans send to Helena and Washington, D.C., know that more than 80% of small businesses are organized as pass-through entities for federal tax purposes and report their business earnings and expenses on their personal income tax forms. That distinction is so vital in producing the right policies,” she said.
The Small Business Tax Deduction has been available since 2017 and allows eligible businesses to deduct up to one-fifth of their income. Without recent legislative action from Congress—signed into law by President Trump on July 4—the deduction was set to expire at the end of 2025.
NFIB states that this measure provides stability for America’s small businesses as they compete with larger corporations while supporting investment in employees and communities. The group encourages those interested in further updates on local business news to visit its website or follow its social media channels.
