BATON ROUGE, La. (April 15, 2026) — The National Federation of Independent Business released a report Wednesday outlining projected economic gains for Louisiana following the permanent extension of the federal 20% Small Business Tax Deduction.
According to the report, the policy is expected to benefit more than 511,000 small businesses across the state. The organization said making the deduction permanent will provide long-term tax certainty and support business planning, hiring and investment.
The report projects Louisiana could add approximately 18,000 jobs annually over the next decade if the deduction remains in place. It also estimates an annual increase in state gross domestic product of $940 million during the first 10 years, rising to $1.9 billion per year after 2035.
“Small business owners need predictability,” NFIB State Director Leah Long said. “By making the Small Business Deduction permanent, Congress and President Trump replaced the threat of a massive tax increase with tax certainty.”
The deduction, first enacted in 2017, allows eligible small businesses to deduct up to 20% of qualified business income. It had been scheduled to expire at the end of 2025 before Congress approved legislation to make it permanent.
President Donald Trump signed the measure into law on July 4, 2025, ensuring the continuation of the tax provision. NFIB said the change allows small businesses to retain more earnings for reinvestment, employee compensation and operational expenses, while improving their ability to compete with larger corporations.
The report also highlights additional federal tax relief measures included in the legislation, though specific provisions were not detailed in the summary.
NFIB said the findings underscore the broader economic impact of small business tax policy and its role in driving job creation and state-level growth.