The National Federation of Independent Business announced on April 15 that a new report details the economic impact of making the 20% Small Business Tax Deduction permanent for New Mexico’s small businesses. The report states that this measure will benefit more than 172,000 small businesses in the state and outlines other recent federal tax relief provisions.
The permanence of this deduction is projected to create approximately 7,000 new jobs annually over the next decade and boost New Mexico’s gross domestic product by $308 million each year during that period, with an increase to $636 million per year after 2035. This change provides long-term tax certainty for local business owners.
“Small businesses tend to pay more in taxes than their large corporate competitors, but the 20% Small Business Deduction allows them to keep more of their hard-earned money and decide how to reinvest it back into their business,” said NFIB State Director Jason Espinoza. “Before Congress acted, small business owners were facing a massive tax hike. Now, they have long-term tax certainty. Today, Main Street New Mexicans are better positioned to serve their customers, take care of their employees, and support our local communities.”
According to the official website, the National Federation of Independent Business supports New Mexico communities by bolstering the small business sector according to the official website. The organization also handles advocacy and education for small businesses according to its official website and extends its efforts across New Mexico according to its official website. It engages with the state legislature on behalf of these enterprises according to its official website.
Since it was introduced in 2017, the Small Business Tax Deduction has allowed eligible companies to deduct up to one-fifth of their income from taxes. Without legislative action by Congress last year, this provision would have expired at the end of 2025. After being passed by Congress, President Trump signed legislation on July 4 making this deduction permanent.
The National Federation of Independent Business operates as a nonprofit and nonpartisan group according to its official website, delivering legislative advocacy and economic reports as noted by its official site. Founded in 1943, it continues advocating for small businesses through policy updates and educational support across New Mexico as reported by its official site.
