by Ethan Faverino | Oct 13, 2025 | Economy, News
By Ethan Faverino |
In a landmark victory for small businesses, Congress has made the 20% Small Business Tax Deduction, also known as Section 199A, a permanent qualified business deduction, ensuring long-term tax certainty for Main Street.
This critical provision allows small businesses to deduct up to 20% of their income, empowering mom-and-pop shops to grow, invest in their workforce, and play their part in giving back to the community.
The decision, signed into law by President Trump, averts a massive tax hike that would have impacted over 33 million small business owners nationwide at the end of 2025.
Making the Small Business Tax Deduction permanent changes the game for Main Street. The tax certainty provided by Congress ensures small businesses can thrive, hire more workers, and compete with larger corporations.
Since its introduction in 2017, the deduction has leveled the playing field for nine out of ten small businesses that file as pass-through entities. Recent NFIB surveys show growing confidence, with small business optimism reaching a five-month high.
The new tax law also includes pro-small business provisions, such as permanent extensions of the 2017 marginal tax rates, preventing up to a 4% tax hike for small businesses and employees.
Enhanced expense and depreciation rules under Section 179 and 168(k) enable business owners to confidently invest in growth, such as making large purchases. Additionally, increased reporting thresholds for IRS forms 1099-K, 1099-NEC, and 1099-MISC reduce paperwork burdens for businesses using platforms like Venmo or PayPal or engaging independent contractors.
The permanent estate tax exemption further supports owners looking to pass their businesses to the next generation or keep them locally owned.
National Federation of Independent Business (NFIB) State Director Chad Heinrich said, “An NFIB-commissioned study by EY found that the Small Business Tax Deduction will increase Arizona’s economic activity by more than $1.4 billion annually, resulting in the creation of 26,000 jobs each year. That means more, good-paying jobs for hardworking Arizonans.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Aug 17, 2025 | Economy, News
By Jonathan Eberle |
Main Street confidence ticked upward in July, with the NFIB Small Business Optimism Index rising 1.7 points to 100.3, edging above its long-term average for the first time in months. The lift was driven largely by more owners reporting better business conditions and viewing it as a good time to expand.
The latest figures, however, paint a mixed picture. While sentiment improved, NFIB’s Uncertainty Index climbed eight points to 97, and labor quality has re-emerged as the top challenge, cited by 21% of owners, the highest share since early spring.
Survey results show growing confidence in day-to-day operations. Thirteen percent of owners rated their business health as “excellent,” up five points from June, and 52% said it was “good,” up three points. Reports of “fair” or “poor” conditions declined. Owners’ outlook on the economy also improved: the net share expecting better business conditions jumped 14 points to 36%, well above historical norms. Sixteen percent said it is a good time to expand, up from 11% last month.
Even with the improved outlook, sales remain a point of concern. Eleven percent named poor sales as their most pressing problem — the highest since February 2021. Inflation worries held steady at 11%, the lowest level since September 2021, though 28% plan to raise prices in the months ahead, a sign that cost pressures persist.
Worker shortages remain acute. Thirty-three percent of owners reported job openings they could not fill, the lowest since December 2020 but still well above average. Of those hiring, 84% said they had few or no qualified applicants. Plans to boost pay are cooling: 27% reported raising compensation in July, down six points, and 17% plan to do so in the next three months. Labor costs were named the top concern by 9% of respondents.
Capital investment showed modest improvement. Fifty-five percent of owners reported spending in the past six months, with the largest share buying new equipment. Still, plans for future capital outlays remain below long-term averages. Borrowing conditions are relatively stable, with only 4% saying their last loan was harder to get. Interest rate concerns remain low, though 25% of owners borrow regularly — a historically small share.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | May 7, 2025 | Economy, News
By Matthew Holloway |
The latest job report from the National Federation of Independent Business (NFIB) shows that 34% of small business owners (seasonally adjusted) reported that despite having open positions in April, they could not find employees to fill them. Chad Heinrich, state director for NFIB in Arizona, offered some suggestions for Arizona lawmakers to address the situation and urged the passage of AZ Senate Bills 1069 and 1215.
“Arizona’s small businesses are the foundation of our economy, and our state has a chance to lead the way in empowering them,” Heinrich said in a statement. “Lawmakers have already done good work keeping taxes and regulations in check. Now, I urge them to pass Senate Bills 1069 and 1215. These two measures will lift a significant recordkeeping burden from Arizona’s smallest businesses and safeguard legal proceedings from foreign entity involvement.”
Senate Bill 1069 sponsored by AZ Senator JD Mesnard (R-LD13) would, if enacted, increase the Business Personal Property Tax exemption to $500,000 per taxpayer, relieving the tax burden on small business owners and “reduce record-keeping and compliance costs enormously,” according to the NFIB.
The bill was passed by the Senate 17-9 with four Senators not voting and passed the House Ways and Means Committee on March 5th.
The second measure, Senate Bill 1215, proposed by AZ Senate President Pro Tempore Vince Leach would require the disclosure of third-parties sponsoring predatory lawsuits against Arizona small business owners and was passed by the House Judiciary Committee on March 26th and is pending consideration by the House Rules Committee. The bill is also supported by the Arizona Chamber of Commerce & Industry, the Arizona Manufacturers Council, the Arizona Lodging & Tourism Association, and the Arizona Trucking Association.
Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry said in a February statement, “Third party litigation funding has grown to an estimated $15 billion industry in the U.S. Essentially what happened is funders pour money into lawsuits in exchange for the settlement. This is a simple transparency bill to ensure transparency in our courts, protect litigants and safeguard against foreign influence. This is not just an Arizona issue; several states have passed this with bipartisan support.”
Chief Economist Bill Dunkelberg explained the NFIB report’s findings saying, “Small business owners remained open to hire and grow their workforce in April. While the percent of open positions decreased a bit, Main Street firms are still struggling to find qualified applicants for their plentiful open positions.” Per the NFIB report, the percentage of unfilled job openings spiked in 2021-22 and have returned to the lowest level observed since January 2021.
Per the NFIB report, the percentage of unfilled job openings spiked in 2021-22 and have returned to the lowest level observed since January 2021 with the largest concentration of openings in construction, transportation, and manufacturing.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Daniel Stefanski | Sep 24, 2024 | Economy, News
By Daniel Stefanski |
A leading small business advocacy organization has presented several Arizona lawmakers with its top award.
Earlier this summer, the National Federation of Independent Business (NFIB) presented a handful of Arizona legislators with its Guardian of Small Business Award. The individuals recognized with the award were as follows:
- Speaker of the House Ben Toma
- Representative David Livingston
- Representative Travis Grantham
- Senate President Warren Petersen
- Senator J.D. Mesnard
- Senator T.J. Shope
“These six lawmakers have gone above and beyond on behalf of Main Street Arizonans,” NFIB State Director Chad Heinrich said. “In this difficult economy, where costs continue to go up and open positions remain unfilled, it’s incumbent on lawmakers to not make it more difficult to own and operate a small business here in Arizona. Our members are grateful for each of these lawmakers’ commitment to free enterprise and sound policy.”
NFIB presented the award to Petersen in August.
NFIB presented the award to Shope in August.
NFIB presented the award to Mesnard in August.
NFIB presented the award to Toma earlier this month.
Toma responded to the award, stating, “Thank you. It is a great honor to be recognized by those dedicated to protecting and promoting small businesses.”
According to its website, “NFIB is the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Sep 23, 2024 | Economy, News
By Daniel Stefanski |
Dozens of Arizona Republicans running for the state legislature received endorsements from a key organization for their support of small businesses.
Late last month, the National Federation for Independent Business Arizona PAC endorsed 51 individuals for their General Election races in the upcoming November contests.
“Locally-owned businesses are the foundation of our state’s economy, creating good-paying jobs and thriving communities,” NFIB State Director Chad Heinrich said. “A recent NFIB survey found that inflation and health care costs are taking a serious toll on our small business owners. These candidates understand the challenges small business owners face and support policies that will make it easier to do business in our state.
Heinrich added, “On behalf of our small business owner members, I’m proud to announce these endorsements for the 2024 general election, and ask all Arizonans to support these pro-small business candidates.”
Senator J.D. Mesnard, one of the Republicans who received an endorsement, said, “I’m proud to have been among a small group of Arizona legislators to receive the Guardian of Small Business Award from the National Federation of Independent Business (NFIB), the state’s leading small business advocacy organization. My colleagues, President Petersen and Senator Shope, also received this award for their work. NFIB holds legislators accountable for the way they vote on important small business issues. I believe that state government should follow the same financial guidelines that any responsible individual or family would follow: spend only what’s necessary, don’t rack up debt, invest in your learning, save for the future, and when times get tough, find responsible ways to trim. We should also create and protect policies that allow small businesses to thrive in our state. I have always voted on legislation with those beliefs in mind. This session, I received a 100% on the NFIB Arizona voting record.”
The NFIB endorsements are as follows:
Endorsed candidates:
Senate
District 01 Mark Finchem
District 02 Shawnna Bolick
District 03 John Kavanagh
District 04 Carine Werner
District 07 Wendy Rogers
District 10 David Farnsworth
District 13 J.D. Mesnard
District 14 Warren Petersen
District 15 Jake Hoffman
District 16 T.J. Shope
District 17 Vince Leach
District 19 David Gowan
District 25 Tim Dunn
District 27 Kevin Payne
District 28 Frank Carroll
District 29 Janae Shamp
House
District 01 Selina Bliss
District 01 Quang Nguyen
District 02 Ari Bradshaw
District 02 Justin Wilmeth
District 03 Joseph Chaplik
District 03 Alexander Kolodin
District 04 Pamela Carter
District 04 Matt Gress
District 07 Walt Blackman
District 07 David Marshall
District 09 Kylie Barber
District 10 Justin Olson
District 13 Jeff Weninger
District 13 Julie Willoughby
District 14 Laurin Hendrix
District 14 Khyl Powell
District 15 Neal Carter
District 15 Michael Way
District 16 Chris Lopez
District 16 Teresa Martinez
District 17 Rachel Jones
District 17 Cory McGarr
District 19 Lupe Diaz
District 19 Gail Griffin
District 23 Michele Peña
District 25 Michael Carbone
District 25 Nick Kupper
District 27 Lisa Fink
District 27 Tony Rivero
District 28 Beverly Pingerelli
District 28 David Livingston
District 29 Steve Montenegro
District 29 James Taylor
District 30 Leo Biasiucci
District 30 John Gillette
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
