Trump Administration Implements Tax Cuts to Boost Small Businesses

The Federal Government of the United States is implementing a series of tax and regulatory measures designed to stimulate American entrepreneurship and small-business growth. Central to these efforts is the permanent establishment of the 20% qualified business income deduction, known as Section 199A, and the expansion of bonus depreciation for equipment and research and development.

To provide long-term tax certainty, the administration signed the One Big Beautiful Bill into law in 2025. Complementing these tax changes, the Small Business Administration has increased lending and established the SBA Deregulation Strike Force to lower regulatory costs for business owners.

These policy shifts follow a period of volatility for the sector driven by the 2008 Great Recession and COVID-19 lockdowns. Recent data suggests a recovery is underway; the National Federation of Independent Business reported that its Small Business Optimism Index jumped to 97.4 in June. Additionally, the Ewing Marion Kauffman Foundation noted that rates of new entrepreneurship and job creation in 2025 remained above pre-pandemic levels.