Hawkeye Reporter

The National Federation of Independent Business (NFIB) has introduced two digital tools aimed at assisting small business owners, policymakers, and the public in Iowa to understand the potential economic impact of the 20% Small Business Tax Deduction. These tools also highlight what could be at stake if Congress does not make this deduction permanent.

The newly released resources include an interactive map that allows users to explore how extending the Small Business Deduction could stimulate job creation and GDP growth across Iowa's congressional districts. Additionally, a tax calculator is available to provide personalized estimates for small business owners in Iowa, indicating how much more they might owe in federal income taxes in 2026 if the deduction expires.

“These new tools give small business owners and elected leaders in Iowa real data about the economic stakes,” said NFIB Iowa State Director Matt Everson. “If Congress fails to act, millions of small businesses across the country—including right here in Iowa—will face a massive tax hike. That means fewer jobs, less investment, and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.”

According to NFIB’s interactive map, extending the deduction could result in an increase of 23,503 jobs and $1.16 billion in GDP for Iowa over the next decade. The district-level data provides lawmakers and local leaders with insights into how their communities might benefit from making the tax deduction permanent or what they might lose if it is not extended.

The tax calculator offers individual small business owners projections on potential tax increases if the deduction is not continued. For instance, a small business owner in Iowa with a personal income of $75,000 and qualified business income of $150,000 could face a tax increase exceeding $13,000 based on their complete financial profile.

NFIB has also expressed approval for the U.S. House of Representatives’ recent passage of the One Big Beautiful Act. This legislation is regarded as one of the most pro-small business measures in recent history and presents Congress with an opportunity to provide over 33 million small business owners with lasting tax relief.

To explore these tools and learn more about NFIB's efforts to support Iowa’s small businesses, visit: www.SmallBusinessDeduction.com