The Support Small Business Growth Act of 2025 creates a new tax deduction for qualifying small businesses to deduct a portion of payroll costs for their lowest-paid employees. Eligible businesses must have no more than 15 full-time employees and meet certain gross revenue thresholds, and they can designate a limited number of employees each year to receive the deduction—starting with up to 10 employees in 2026-2030, declining to zero by 2034. The deduction allows businesses to write off either 12 percent of wages paid to designated employees or a fixed cap ranging from $4,000 to $8,000 per employee, whichever is lower, with the intent of reducing labor costs for smaller employers. The provision sunsets after December 31, 2033, meaning it expires and no longer applies to future tax years. This bill directly benefits small business owners by lowering their tax burden, though the benefit phases out over time and eventually disappears entirely.
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