Taxes Just Got Permanently Lower: The 20% Small Business Deduction Is Now Law Forever
On April 15th, the National Federation of Independent Business (NFIB) officially released state-by-state data confirming that the 20% Small Business Tax Deduction (previously scheduled to expire at the end of 2025) has been made permanent as part of the federal tax package signed into law. For the 292,728 small businesses in Arkansas, this translates to an estimated $440 million in annual tax savings statewide. The deduction applies to all pass-through entities — sole proprietors, LLCs, S-Corps, and partnerships — allowing them to deduct up to 20% of qualified business income from their federal taxable income.
This is the single biggest recurring tax win for Conway and Little Rock small business owners in at least a decade. Before Congress acted, nine out of ten Arkansas small businesses were facing a 43.5% combined top rate (federal 39.6% + state 3.9%). Now that rate is effectively reduced by 20% for every dollar of qualified business income. NFIB Arkansas State Director Katie Burns put it simply: "The 20% Small Business Deduction helps level the playing field between Main Street and their big box store competitors, allowing small business owners to keep more of their hard-earned money and decide how to reinvest it back into their business." On top of this, the Section 179 expensing cap was permanently doubled to $2.5 million, and 100% Bonus Depreciation was restored for eligible assets. Meaning every dollar you invest in AI tools, equipment, or technology can be fully deducted in year one.
To benefit from this new advantage, you can contact your business accountant and make sure that you’re set up as the right entity type to maximize the 20% deduction. Ask them, should you be accelerating any equipment or software purchases this year to capture both the deduction and 100% bonus depreciation? These two questions could identify thousands in savings you're currently leaving behind.
Source: https://www.nfib.com/wp-content/uploads/2026/04/AR-Small-Business-Deduction-Impact-Sheet.pdf
University of Arkansas Joins Landmark AI Research Consortium and Your Business Could Benefit
On April 20th, 2026, the University of Arkansas signed a formal agreement in Memphis with the University of Memphis, the University of Mississippi, and UT Health Science Center to launch the Mid-South AI Research Consortium, a first-of-its-kind regional network unifying more than 300 PhD-level AI researchers across four Carnegie R1 institutions. The consortium is targeting five applied research areas: health care, supply chains, energy, agriculture, and national defense, all of which have direct implications for industries in Central Arkansas. The consortium will also jointly pursue major federal grant applications and offer upskilling programs for regional workers and businesses.
This consortium is essentially a free research partner coming online in your backyard. The U of A's supply chain AI research is directly relevant to retail, food service, and distribution businesses that make up the economic backbone of Central Arkansas. University of Arkansas Chancellor Charles Robinson said the goal is to "help establish the region as a leader in AI innovation while strengthening key industries, preparing students for success." Practically, this means access to AI-trained graduates, potential research partnerships, grant co-sponsorship opportunities, and business engagement programs — all flowing through the U of A in Fayetteville.
Go to uark.edu and navigate to the Office of Entrepreneurship and Innovation (or call the U of A's industry engagement office at 479-575-2000). Ask specifically how your small business can participate in supply chain or agribusiness AI research partnerships emerging from the new Mid-South AI Consortium.
Congress Wants to Raise Your Deduction to 23%: The Small Business Tax Cut Act Filed This Week
On April 23rd, 2026 — just days after the 20% deduction was confirmed permanent — the Small Business Tax Cut Act of 2026 (H.R. 8415) was introduced in the U.S. House of Representatives, proposing to increase the deduction from 20% to 23% and expand eligibility to additional small business owners. NFIB sent a formal letter to Congress on April 23rd in support of the bill, noting it would "provide vital tax relief to tens of millions of small businesses" and build on the landmark 2025 permanency win. Rep. David Kustoff introduced the bill and has active NFIB advocacy support behind it.
A 3-percentage-point increase in the deduction rate would add meaningful additional savings for every Arkansas LLC, S-Corp, and sole proprietor, on top of the $440 million in annual savings already locked in. This bill is in early stages and not guaranteed to pass, but NFIB's aggressive early support signals serious congressional momentum. For Conway and Little Rock small business owners, the smart move is to understand now what a 23% deduction would mean for your 2026 tax picture so you're positioned to act quickly if it passes mid-year.
Use the free NFIB Small Business Tax Calculator at nfib.com to estimate your personal savings under both the current 20% deduction and the proposed 23% rate. Then forward the results to your accountant so they can model the difference for your Q3 and Q4 estimated payments.
Arkansas Homestead Credit Rising to $675: Free Money for Every Business-Owning Homeowner
On April 16th, 2026, the Arkansas House of Representatives voted 92-0 to advance a resolution to raise the Arkansas Homestead Property Tax Credit from $600 to $675. The bill now moves to the Arkansas Senate for approval during the ongoing 2026 Fiscal Session. If passed, the increased credit would apply to assessment years beginning January 1, 2026, meaning eligible homeowners would see the benefit on this year's tax bills. This follows a $100 increase in the credit last year, and a similar increase the year prior, representing three consecutive years of property tax relief for Arkansas homeowners.
For a Conway or Little Rock small business owner who also owns their home, this is straightforward: $675 back in your pocket on your property tax bill this year with zero action required beyond filing the homestead credit application with your county assessor, a one-time filing that then applies automatically each year. The real play here is for business owners who have not yet filed for the homestead credit at all, potentially missing out on up to $675 per year. With the state budget flush enough to fund three consecutive increases, this credit is only going up.
Call your county assessor's office today, for Faulkner County owners, that's 501-450-4905, and ask if your homestead credit is on file. If not, file the one-page application before the October 15th deadline. It takes 10 minutes and saves you $675 starting this tax year.
Conagra’s $220M Fayetteville Expansion: What 100 New Jobs Mean for NW Arkansas Small Business
The AEDC confirmed this week that Conagra Brands will invest approximately $220 million to expand its existing food manufacturing facility in Fayetteville, Arkansas, the company's largest capital investment in the state in decades. The project, announced March 6th but entering active construction preparation this month, will create more than 100 new jobs over five years and "significantly increase chicken production capacity" at the Fayetteville facility, which currently produces 15 million cases of ready-to-eat meals annually. Conagra employs approximately 2,000 Arkansans across its Fayetteville and Russellville plants.
Every major manufacturing expansion in Arkansas creates an invisible downstream economy for small businesses: staffing agencies, safety equipment suppliers, food vendors, accounting firms, HR consultants, commercial cleaning services, and more. Conagra's Fayetteville expansion is live construction starting this year, meaning NW Arkansas small business owners are now inside the supplier opportunity window, not waiting for it. For Conway-area business owners in professional services, this is also a signal: Russellville's existing Conagra plant (a neighbor to Conway's market area) is equally positioned for supplier engagement, and the company's multi-year Fayetteville commitment signals long-term stability in Arkansas operations.
Reach out to Conagra's Arkansas procurement or facilities team through their supplier portal at conagrabrands.com/suppliers or contact AEDC's supplier development team at 501-682-1121 to ask how to be included in the Fayetteville project's local vendor list.
📅 Editor's Calendar: What's Coming Next
Date | Event / Deadline | Action |
|---|---|---|
Now | 20% Small Business Deduction confirmed permanent | Call your accountant about entity type and bonus depreciation[1][2] |
April 24–26 | Venture Center JOLT Cyber Challenge, Little Rock[19] | Register at Eventbrite — tickets still available |
April 30 | Arkansas Fiscal Session ends (30-day limit)[20] | Watch for special session announcement on income tax cut |
May (early) | Government deadline to appeal $165B tariff refund order[21] | Contact a customs broker if you import goods |
May 7 | ASBTDC Lender Quick Connect, Little Rock[22] | Register if you need capital access coaching |
Oct 15 | Homestead Property Tax Credit filing deadline[13] | File with your county assessor now to avoid missing deadline |
The convergence of permanent federal tax relief, a proposed 23% deduction expansion, Arkansas state income tax cuts in a pending special session, and the Mid-South AI Consortium launch makes April 2026 one of the most consequential months for Arkansas small business policy in years. Owners who engage with their accountants and ASBTDC advisors now will be positioned to capture every dollar of advantage before competitors realize what's available.
Thumbnail photo by Suzy Hazelwood: https://www.pexels.com/photo/stack-of-newspapers-3866816/