Success Stories of the 20% Small Business Deduction in the Working Families Tax Cuts

20% deduction in the Working Families Tax Cut is helping Main Street employers and employees

The Working Families Tax Cuts enacted by President Trump and House and Senate Republicans is helping small businesses create jobs, purchase new equipment, raise wages, and expand operations.

In addition to permanent full business expensing, the tax cuts provided a vital 20% tax deduction for small businesses.

Below are 10 in-their-own-words examples of how the 20% deduction is helping employers and employees nationwide:

Coal River Coffee Company (St. Albans, West Virginia) — The 20% deduction has helped the company hire new employees, improve the property and enhance employee benefits:

“The 20 percent small business tax deduction has truly assisted our business in a multitude of ways. We don’t just keep the money and put it in our pockets. But rather we use it to pour back into our community and into our customers and also our employees. Because of it, we’ve been able to create a retirement program for our employees. We’ve been able to raise their wages, and we’ve also been able to do enhancements on our property to enhance the customer experience. But one of the coolest things that we’ve been able to do is buy older, dilapidated buildings on our street and revitalize them so other small business owners could chase their dreams just like we have.” – Michael Ervin, Co-founder, Coal River Coffee Company

IPS Packaging and Automation (Greenville, South Carolina) — The 20% deduction is helping the company create new jobs, purchase more equipment, and invest in new technologies:

“The Working Families Tax Cut has ensured we have certainty and peace of mind by passing permanent, pro-business tax cuts like the 199A small business deduction, 100% bonus depreciation and full expensing for research and development costs. This has meant we can invest in our business by hiring more workers, investing in new technologies, and buying more equipment. It allows us to offset the rising cost of doing business and allows us to make our customers more competitive and productive. The bill also ensures our 200 employees have more take-home pay through tax cuts like the expanded child tax credit and the no tax on overtime provision.” — Derrick Murdock, CEO of IPS Packaging and Automation, as documented by the National Association of Wholesaler-Distributors

KVG (Gettysburg, Pennsylvania) — The 20% deduction and full expensing helped the company create jobs and improve its property and operations:

“We initially came to Gettysburg, Pennsylvania, in 2017. The 20% rate on taxes attracted us to do as much as we can here in the [United States]. When we took that opportunity, we were able to then write down improvements that we made to the property we purchased here in Gettysburg, and that included machinery and updating our facility. That catalyst for us to come back here enabled us to add ten jobs, and continue to run operations as a company and be successful from here in Gettysburg and outside the continental U.S.” — John Boyer, CEO of KVG, testimonial documented by the United States Chamber of Commerce.

KPM Exceptional, LLC (Landing, New Jersey) — The 20% deduction is helping the company expand and create jobs:

“KPM was founded in 1967 as a regional distributor of outdoor power equipment based in New Jersey. We are proud of the work environment we foster for our employees and the world-class service we provide for our dealers. Tax policies enacted in the Working Families Tax Cut, like the permanent 199A small business deduction and the permanent death tax exemption will ensure we remain competitive with larger companies and will help us continue to grow, hire, and offer competitive pricing.” — Glenn Beyerl, Chairman, KPM Exceptional, LLC, as documented by the National Association of Wholesaler-Distributors

Asphalt Preservation Company (Detroit Lakes, Minnesota) — The 20% deduction is helping with equipment upgrades and crew safety and also helped with the creation of an employee profit-sharing program:

“We had 35 employees in 2025, and I just wanted to take a minute and thank you for making permanent the 20 percent small business tax deduction. It’s allowed us to update our equipment, which has led to better employee retention, which has led to a safer crew out on the road with newer hires. Also, we were able to start a profit-sharing program that is obviously a huge benefit to our employees. Huge help for my business. It is going to allow us to continue to grow and be safe out there.” – Averre Marquis, owner, Asphalt Preservation Company and member of the NFIB.

Thanks A Latte Coffee (Holly Sprints and Angier, North Carolina) — Tax savings from the 20% deduction and the full, immediate expensing helped with the building of a new store and the purchase of new equipment:

“This year I’m doing something big. I’m building a brand new store, and because of this bill, I’ll be able to write off every penny I spend on new equipment this year. It all counts. That means I can invest now without being buried in debt later.

He also made the 20% tax reduction for small business income permanent. That’s real savings, not for Wall Street, but for people like me.

That’s what common sense policy looks like. This isn’t theory, this is real relief.

We don’t want handouts, we just want a fair shot. And with this bill we have finally got it.” — Testimonial from Vicki Harry of Thanks A Latte, as documented by Americans for Prosperity.

1920 Tavern (Roswell, Georgia) — The tax savings from the 20% deduction, along with the permanent and immediate expensing provisions, helped this local restaurant purchase new equipment and floors, hire a local wood worker to make tables, and helped to raise employee pay and create new jobs:

My message is very simple. Republican tax cuts are helping reinvigorate the American dream for small businesses like mine. The Working Families Tax Cut expands and makes permanent key small business tax breaks that were set to expire at the end of last year. The law enshrines a 20% small business tax cut that is used by 26 million other business owners like myself, and it restores one hundred percent immediate expenses expensing allowing us to invest more in our equipment and my staff who I consider my family.

These tax cuts have been a game changer for all small businesses. For example, I was able to take the money saved and purchase new floors for my restaurant. I also was able to get new tabletops and use a local wood crafter allowing him to give work to his workers. They also allow us to hire more staff and also allow me to give my longtime employees a much needed raise.

These choices ripple through our community. Higher wages mean better service which brings out more customers who support more jobs and thus creates a stronger neighborhood economy. It’s a virtuous cycle and a perfect example of how good tax policy fuels American prosperity. Tax cuts have always helped my suppliers, my bakers, my butcher, my gelato maker. It keeps their costs low, allowing me to keep steady prices for my customers. That means a lot given the broader cost of living pressure many people face, and through the no tax on tips provision, the tax cut has helped my employees keep more of what they earn. — April 14, 2026 remarks at Americans for Tax Reform annual tax press conference in the U.S. Capitol

Walkabout Outfitter (Harrisonburg, Virginia) — The 20% deduction helps the company provide pay raises:

“We are very grateful for having the Small Business Deduction and with that savings this year on it, we will continue to give people raises. As owners of the business, my husband and I who own the business, we have not given ourselves any pay raises, but we do give pay raises to stay competitive, so it goes right to our employees. So, we’re very grateful, again, to have the Small Business Deduction, which to begin with, I think helped keep us in business. And, that money is actually going directly to the employees that we currently have, so they are the ones who are most benefitting from the Small Business Deduction.” — Tina Miller, owner of Walkabout Outfitter

Husco (Waukesha, Wisconsin) — The 20% deduction helped this manufacturer create jobs, increase investment in equipment, and increase philanthropic outreach:

“Permanently extending the 199A deduction has been vital for our business, providing tax certainty while ensuring that small and medium pass-through manufacturers like Husco can continue to invest in our growth, innovation, workers and the communities we operate in. With our facilities in Waukesha and Whitewater, Wisconsin, we are an economic driver for our local community and take our role as a pillar of our community seriously. Permanently extending the 199A deduction helps us continue to do that — enabling more hiring, more investment, and supporting our philanthropic efforts in Wisconsin.” — Husco President and CEO Austin Ramirez, as documented in the National Association of Manufacturers’ 2026 Manufacturing Tax Wins Across America report

Alaskan Brewing Company (Juneau, Alaska) — The 20% deduction and immediate and full expensing helped the local brewer purchase equipment and increase innovation at their facilities:

As documented by the National Association of Manufacturers: H.R. 1’s [Working Families Tax Cut/One Big Beautiful Bill Act] provisions — such as immediate R&D expensing, full expensing for capital equipment purchases, restored EBITDA interest deductibility and a permanent 20% pass-through deduction — give Alaskan Brewing the financial footing to keep pushing the envelope on sustainable manufacturing and innovation from one of America’s most remote production facilities.

“Certainty matters. If we know the rules won’t change midstream, we can take more calculated risks.” — Geoff Larson, Co-Founder of Alaskan Brewing Company, as published in the National Association of Manufacturers’ 2026 Manufacturing Tax Wins Across America report