The National Federation of Independent Business (NFIB) announced on April 15 that a new report details the economic benefits and tax savings for Maine’s small businesses now that the 20% Small Business Tax Deduction has been made permanent. The report highlights projected job growth and increases in gross domestic product (GDP) as a result of this federal tax relief.
The issue is important because the deduction affects over 160,000 small businesses in Maine, providing them with long-term financial certainty. According to NFIB, maintaining this deduction could help local business owners invest more in their companies and communities.
“Maine small business owners are appreciative this tax season now that the 20% Small Business Deduction has been made permanent and owners can take full advantage of the long-term tax certainty,” said NFIB Maine State Director David Clough. “Making the Small Business Deduction permanent was a historic accomplishment for Main Street businesses, but owners caution Maine legislative actions could derail these tax savings at the state level.”
According to NFIB, if the deduction remains in place, Maine could see an average gain of 6,000 jobs each year over the next decade. The state’s annual GDP is also expected to increase by $305 million during that period and by $629 million per year after 2035.
The Small Business Tax Deduction has allowed eligible businesses to deduct up to one-fifth of their income since it was introduced in 2017. Without recent congressional action, it would have expired at the end of 2025. President Trump signed legislation on July 4, 2025, making this provision permanent for America’s small businesses.
NFIB says this change provides stability for business planning and helps smaller firms compete with larger corporations. The organization continues its advocacy efforts on behalf of independent business owners across all states.
