Enhanced Small Business Growth Act of 2026

The Enhanced Small Business Growth Act of 2026 increases tax benefits for domestic manufacturers by raising the qualified business income deduction rate from 20 percent to 30 percent. To qualify, a business must derive at least 85 percent of its income from manufacturing tangible property, with at least 20 percent of production costs incurred within the United States. These changes apply to taxable years beginning after December 31, 2025, and modify how the deduction is calculated to ensure it is applied correctly.