The National Federation of Independent Business announced on Apr. 15 a new report detailing the economic impact of making the 20% Small Business Tax Deduction permanent for South Carolina’s more than 530,000 small businesses.
The topic is significant as it affects job growth, economic output, and long-term certainty for small business owners across the state. The deduction’s permanence is expected to provide stability and financial benefits to thousands of entrepreneurs.
According to the report, South Carolina could see an increase of about 18,000 new jobs each year over the next decade if the deduction remains in place. The state’s gross domestic product is projected to rise by $838 million annually during this period and by $1.7 billion per year after 2035.
Ben Homeyer, State Director for NFIB, said: “Small business owners want predictability, especially when it comes to taxes. By making the Small Business Deduction permanent, Congress and President Trump replaced the threat of a massive tax increase with long-term tax certainty.”
Since its introduction in 2017, the Small Business Tax Deduction has allowed eligible businesses to deduct up to one-fifth of their income. This provision was set to expire at the end of 2025 until legislation signed on July 4, 2025 made it permanent. The change aims to let small businesses keep more earnings for reinvestment rather than paying higher taxes.
The National Federation of Independent Business – South Carolina supports community well-being through its backing of local enterprises according to its official website. It offers advocacy and educational resources statewide according to its official website and engages with state lawmakers on behalf of small business priorities according to its official website. Founded in 1943 as a nonprofit and nonpartisan organization according to its official website, NFIB continues efforts across South Carolina assisting independent businesses through legislative support and policy guidance according to its official website.
Homeyer said that by securing this federal tax relief permanently into law “America’s small businesses can use more of their hard-earned money to support their business and employees instead of sending it to their state and federal government.”
