by Jackie Navarrete
Let’s be real—when you run a small business in Illinois, every dollar counts. That’s not just a cliché, it’s your profit margin talking. And if you’ve been relying on the 20% small business tax deduction to make those books balance, we’ve got news for you: it might not be around much longer. So how do you secure your 20% tax deduction?
But here’s the good part—there’s still time to fight for it. The National Federation of Independent Business (NFIB) just released powerful new digital tools to help small business owners like you visualize your savings—and understand what’s at stake if this deduction disappears.
Let’s break down what this deduction is, why it matters, what the NFIB is offering, and what you can do right now to protect your business (and bank account).
What is the 20% Small Business Tax Deduction?
This deduction was born from the Tax Cuts and Jobs Act of 2017. Known formally as the Qualified Business Income (QBI) Deduction, it allows certain pass-through entities—sole proprietorships, S corps, LLCs, and partnerships—to deduct up to 20% of their business income from their taxable income.
Translation: If your business made $100,000, you could deduct $20,000 from your taxable income. That’s real cash back in your pocket. This deduction is a financial safety net for countless small businesses, especially in high-cost states like Illinois.
But here’s the kicker: unless Congress acts, this deduction will vanish after 2025. Poof.
Why This Deduction Matters for Illinois
1. The Numbers Don’t Lie
NFIB’s new data reveals:
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Illinois could gain over 92,000 jobs and $6.5 billion in GDP by extending the deduction.
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Without it, the average small business could face an additional $13,000 in annual taxes.
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That’s not just accounting stress—that’s lost inventory, cut hours, or saying no to hiring that much-needed staff member.
For many entrepreneurs, this isn’t a “nice-to-have.” It’s make-or-break.
2. Illinois is Already Tough for Small Biz
Let’s be honest—Illinois isn’t exactly a tax haven. Small businesses here are navigating rising costs, minimum wage hikes, inflation, and now this? Cutting the 20% tax break would throw another wrench into already tight margins.
NFIB President Brad Close didn’t mince words:
“If Congress fails to act, millions of small business owners—especially in states like Illinois—will face a tax hike they simply can’t afford.”
What Tools Did NFIB Release?
NFIB just dropped a suite of digital resources tailor-made for small business owners in Illinois. These tools go beyond generic advice—they show your numbers and your savings.
Interactive Map Tool
This lets you see state-by-state data on how the deduction impacts job growth, GDP, and small business formation.
Savings Calculator
Plug in your numbers and see how much the deduction is saving you today—and how much you’ll owe if it disappears.
Downloadable Advocacy Toolkit
Includes pre-written emails, phone scripts, and social posts so you can make your voice heard on Capitol Hill. No guesswork—just action.
Economic Impact Reports
NFIB commissioned economic studies showing that failure to renew this deduction could:
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Shrink the U.S. economy by $63 billion
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Slash 847,000 jobs nationwide
Yes, this is national policy—but Illinois would feel the heat.
Real Talk: Why Should You Care?
You’re not just a business owner. You’re a job creator, a community builder, a dream chaser. And tax policy should reward—not punish—that hustle.
If this deduction disappears:
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You might be paying thousands more in taxes
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Your ability to hire, expand, or even stay afloat could be threatened
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Meanwhile, massive corporations keep their loopholes and perks
Yeah… not exactly a fair fight.
And yet, here’s the thing: Congress listens to constituents who show up. That’s where you come in.
What Can You Do Right Now?
Here’s how to go from informed to impactful in 3 steps:
Step 1: Use NFIB’s Calculator
Head to NFIB’s website and punch in your info. The savings will surprise you—and so will the potential hit if the deduction ends.
Step 2: Call Your Rep
Use NFIB’s advocacy toolkit to call or email your U.S. representative. Tell them you want the QBI Deduction made permanent for small businesses.
Bonus points if you personalize it. Tell them your business name, your zip code, and how the deduction has helped you.
Step 3: Spread the Word
Post your support on social media. Tag your local representatives. Rally fellow business owners. This isn’t just about your shop—it’s about keeping the Illinois small biz economy alive.
How VMS Helps Small Business Owners Thrive—Tax or No Tax
At Velocity Merchant Services, we get it—tax breaks are helpful, but they’re not the whole game.
We support small businesses with:
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Cash Discount Programs that reduce your credit card processing fees to near-zero
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Clover POS systems that simplify accounting (and make tax time easier!)
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Working capital solutions to help you invest in your growth without waiting on policy changes
We believe small businesses deserve more than just a chance—they deserve every advantage possible. This deduction is one of them. But whether it stays or goes, we’ve got your back.
Final Thoughts: Don’t Wait Until It’s Too Late
You wouldn’t ignore a $13,000 invoice—so don’t ignore a $13,000 tax hike.
The fight to make the 20% small business tax deduction permanent is happening right now. If you’re an Illinois small business owner, your voice matters more than ever.
Use the NFIB tools. Call your reps. Share your story. Then come talk to us at Velocity Merchant Services about how we can keep your business running lean, smart, and strong—no matter what Congress decides.
Want help navigating your taxes, POS systems, or cash flow?
Give us a call or schedule a call with one of our small business specialists today.
Because we believe in small business. And we believe in you.
For more insights like this, keep up with the VMS blog—where small business meets big tech without the fluff.
