Shelby Review

John James, the House Representative from Michigan, announced that new legislation aims to expand the Small Business Deduction and Opportunity Zones to stimulate small business growth and rural investment. This statement was made on X.

"Small businesses are what makes the economy thrive," said James. "The One Big Beautiful Bill is a huge win for our small businesses! It increases and makes permanent the Small Business Deduction to 23% for 30 million small businesses. It also renews the Opportunity Zone program to spur over $100 billion in new investment with enhancements to target rural communities."

Congressional leaders are currently advancing bipartisan bills intended to extend the federal Opportunity Zone program beyond its 2026 expiration date. These bills also aim to enhance transparency requirements. Meanwhile, small business advocates are urging lawmakers to make the 20% Small Business Deduction permanent. According to OpportunityZones.com, these discussions highlight concerns regarding tax fairness, economic growth, and the future of incentives for businesses in underserved areas as essential components of federal economic policy.

Approximately 90% of small businesses in the United States organized as pass-through entities—including S corporations, partnerships, and sole proprietorships—are eligible for the Qualified Business Income Deduction. The Internal Revenue Service (IRS) reports that this deduction, established by the 2017 tax law, offers a tax break of up to 20% on qualified business income. It is set to expire after 2025 unless Congress renews it.

By the end of 2020, more than 48% of the nation’s 8,764 designated Opportunity Zones had received investments compared to just 26% in 2019. According to the Economic Innovation Group, Qualified Opportunity Funds had raised at least $75 billion by 2019. These funds have directed capital into projects within low-income communities and sparked debate about their impact on local development.

James is a Republican U.S. Representative for Michigan’s 10th District and was first elected in 2022 following previous Senate campaigns. His official biography states that he is a West Point graduate, former Army helicopter pilot, and former president of his family’s logistics business. His legislative priorities include small business tax relief, supply chain security, and supporting Michigan’s economic competitiveness.