Extension of critical tax provisions serving of the Small-Business community is an NSBA Priority Issue for the 119th Congress.
Yesterday, the House passed the NSBA-supported H.Con.Res.14 by a count of 217-215. This major vote represents the first, and best, opportunity for Congress to unlock the Budget Reconciliation process and allow for consideration of tax policy this year.
There are a handful of critical small-business tax provisions, like 199A, the Qualified Business Income Deduction, that were passed as part of the Tax Cuts and Jobs Act (TCJA) of 2017, which will expire, if Congress fails to act this year.
For years, NSBA has been warning policymakers about the challenges posed by various sunsetting laws and how those create additional hardships that fall squarely on the shoulders of small business. Today, that fear is front-and-center.
The biggest tax relief provisions afforded to small business in the TCJA are set to expire at the end of 2025, giving Congress limited time to extend those cuts for small businesses. Unfortunately, the original law made permanent only those tax cuts that were for the largest companies in the U.S. – leaving small business in today’s tenuous position.
“Given that the majority of small-business owners pay business taxes at the personal income level—83 percent are pass-through entities—it’s no wonder small businesses are very concerned about potential and significant tax hikes if Congress fails to address the expiring tax cuts,” NSBA President and CEO Todd McCracken said following passage of the budget blueprint. “I urge lawmakers of every stripe to seek solutions to ensure that small businesses are afforded tax stability, predictability, and permanency, not to mention parity with larger businesses.”
Earlier today, NSBA released its 2025 Small Business Taxation Survey, which shows the significant impact federal taxes have on America’s smallest businesses. The major take-away: expiration of the TCJA tax cuts will be a significant issue for the overwhelming majority of small businesses.
Click here to view the survey.
NSBA was cited in House Budget Committee materials in the lead up to the vote, see here.
