This bill, titled the "Enhanced Small Business Growth Act of 2026," aims to significantly boost the qualified business income (QBI) deduction for eligible domestic manufacturers. It proposes to increase the deduction rate from 20 percent to 30 percent for these businesses, providing a greater tax benefit and encouraging domestic production. Furthermore, the bill enhances the wage and property limitation for the deduction, allowing it to be based on 100 percent of W-2 wages, up from the current 50 percent, which could further increase the deductible amount for qualifying businesses. To qualify for these enhanced benefits, a taxpayer must be a "qualified domestic manufacturer," meaning at least 85 percent of their combined QBI must originate from a "qualified domestic manufacturing trade or business." This specific type of business is defined as one that manufactures tangible property and incurs at least 20 percent of its cost of goods sold, allocable to qualified gross receipts, from labor and overhead expenses within the United States. These provisions are designed to incentivize manufacturing activities and job creation domestically, with the amendments applying to taxable years beginning after December 31, 2025.