Small businesses in Louisiana are poised to benefit greatly from the 20% Small Business Tax Deduction now that it has been made permanent.
That’s according to the National Federation of Independent Business, which on Wednesday issued a report outlining the economic benefits and tax savings the now-permanent deduction will bring to the 511,235 small businesses in Louisiana.
In a nutshell: Louisiana is projected to gain 18,000 new jobs annually and see an annual GDP increase of $940 million over the next 10 years if the deduction remains in place. Beyond the next decade, those figures rise dramatically. The state is projected to gain 36,000 new jobs and see a GDP increase of $1.9 billion each year after 2035.
The U.S. as a whole, meanwhile, is projected to gain 1.2 million new jobs annually and see an annual GDP increase of $75 billion over the next 10 years and to gain 2.4 million new jobs and see a GDP increase of $150 billion each year after 2035.
Since 2017, the Small Business Tax Deduction has allowed small businesses to deduct up to 20% of their business income. The deduction was set to expire at the end of 2025 absent any action by Congress.
Congress did act, however, and President Donald Trump in July signed legislation making the deduction permanent.
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