The One Big Beautiful Bill Act makes the 20% qualified business income (QBI) deduction permanent starting in 2026, ending its scheduled 2025 expiration. It also widens the phase-out thresholds for high earners and service businesses and guarantees a minimum $400 deduction for anyone with at least $1,000 of QBI.
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QBI pass-through deduction made permanent at 20% with new $400 minimum for 2026
Why this matters for founders
Pass-through founders (LLCs, S-corps, sole props) can now plan around the 20% deduction long-term instead of a cliff, and even small side-income now clears a $400 floor.
Source: Carr, Riggs & Ingram
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