The National Federation of Independent Business announced on April 15 that a new report details the economic benefits and tax savings resulting from the permanent 20% Small Business Tax Deduction for North Dakota’s small businesses.
The organization said this deduction will affect more than 78,000 small businesses in the state, providing significant relief and stability. The report also outlines other federal tax relief measures that have been signed into law.
According to NFIB, if the deduction remains in place, North Dakota is expected to see an increase of about 4,000 new jobs each year over the next decade. The state’s annual gross domestic product could rise by $226 million during this period and by $467 million per year after 2035.
Don Larson, NFIB North Dakota State Director, said: “A permanent Small Business Tax Deduction means North Dakota’s entrepreneurs can move forward with big plans for capital investments and expansion. Small businesses across our state can continue to deduct up to 20% of their qualified income, which provides the stability necessary to give back to the communities they serve. This is a win for every corner of our state.”
Since its introduction in 2017, the Small Business Tax Deduction has allowed qualifying businesses to deduct up to one-fifth of their income. Without congressional action, it was set to expire at the end of 2025. President Trump signed legislation on July 4, 2025 making this deduction permanent after it passed Congress.
The NFIB said that making this provision permanent offers certainty for business owners and helps level competition with larger corporations. More information about these advocacy efforts and access to North Dakota’s full report are available on the NFIB website.
