Louisiana small business owners have seen a significant policy change following congressional action to make the 20% Small Business Deduction permanent. The move, championed by House Speaker Mike Johnson and Majority Leader Steve Scalise, has been described as a crucial victory for local entrepreneurs.
Leah Long, State Director of the National Federation of Independent Business (NFIB) in Louisiana, expressed appreciation for the lawmakers’ roles in passing the recent tax bill. The deduction, first introduced in 2017 under the Tax Cuts and Jobs Act, allows small businesses to deduct up to 20% of their business income from federal taxes. According to Long, this provision “helps put them on equal footing with their larger corporate competitors, expand, and create jobs.”
Previously, the deduction was scheduled to expire at the end of 2025. “That meant nearly every small business in Louisiana—99.5% of all businesses in the state—was staring down the possibility of higher taxes in just a matter of months,” Long wrote. The uncertainty around tax policy had led many business owners to hesitate on hiring or investing due to unclear future obligations.
Long emphasized that without legislative intervention, about nine out of ten small businesses nationwide would have faced higher taxes compared to larger corporations. She said, “That would have tilted the playing field against local businesses and made it harder for them to survive.”
The column highlighted the broader impact on communities: “Louisiana’s economy depends on small businesses. They aren’t just job creators, they’re community builders. They sponsor youth sports teams, support local charities, and provide opportunities that keep our towns and cities strong.”
The permanent extension provides these businesses with long-term tax certainty, allowing them more stability and planning capability. Long credited Johnson and Scalise for their efforts: “They listened to the voices of small business owners in Louisiana and across the country and helped steer the provision through Congress and to President Trump’s desk.”
Concluding her statement, Long said, “On behalf of the thousands of NFIB members in Louisiana, I want to thank Speaker Johnson and Leader Scalise for standing with Main Street. Their leadership has helped secure a stronger future for Louisiana’s small businesses, their employees, and their communities.”
