Yellowhammer Times

The National Federation of Independent Business (NFIB) has introduced two digital tools aimed at assisting small business owners, policymakers, and the public in Alabama. These tools focus on understanding the economic implications of the 20% Small Business Tax Deduction and highlight potential outcomes if Congress does not make it permanent.

The first tool is an interactive map that enables users to see how extending the Small Business Deduction could influence job creation and GDP growth across Alabama's congressional districts. Additionally, NFIB has developed a tax calculator designed to give small business owners personalized estimates of potential federal income tax increases in 2026 if the deduction expires.

“These tools show Alabama’s small business owners exactly what’s on the line for them and their communities,” stated NFIB State Director Rosemary Elebash. “This deduction is critical to our economy, and letting it expire would do serious harm to Main Street businesses.”

According to NFIB's data, maintaining the deduction could result in over 33,000 new jobs and a $1.7 billion increase in GDP for Alabama over the next decade. The district-level information helps lawmakers and local leaders assess how small businesses might benefit from making the tax deduction permanent or suffer if it lapses.

The tax calculator provides projections for individual small business owners regarding potential tax hikes should the deduction not be extended. For instance, an owner with a personal income of $75,000 and qualified business income of $150,000 might face a tax increase exceeding $13,000 based on their complete financial situation.

NFIB also commended the U.S. House of Representatives for passing the One Big Beautiful Act recently. The act is considered one of the most supportive pieces of legislation for small businesses in recent times, offering Congress a chance to deliver lasting tax relief to over 33 million small business owners.

For further details on these tools and NFIB's efforts to support Alabama's small businesses, visit www.SmallBusinessDeduction.com.