Many businesses will benefit this year from the new 20 percent qualified business income deduction. This deduction applies to "pass-through entities:" partnerships, S-corporations, sole proprietorships, and most LLCs. However, if your taxable income from all sources exceeds $157,500 for an individual or $315,000 for a married couple filing jointly, your 20 percent deduction could be phased out. For these higher-income business owners, the deduction is limited to your share of your most advantageous calculation:

• 50 percent of the W-2 wages your company pays OR
• 2.5 percent of the purchase price of business fixed assets (with some limitations), plus 25 percent of W-2 wages paid.

The above assumes you are not a "Specified Service Trade or Business," but few construction-related companies are.

PRO TIP: If your company files a partnership return, beware the guaranteed income trap. Guaranteed income paid to the partners is not considered pass-through income eligible for the 20 percent deduction. Neither is the S-corp owner's W-2 pay, but at least that counts toward the 50 percent/25 percent W-2 wages in the above calculations, so it can help the owner qualify for the 20 percent deduction.

For more information, consult your CPA. There’s still time for last-minute tax strategies involving owner payroll, paying a spouse, or retroactive S-corp elections, among others.

 

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Brooke Witt is a CPA at Duncan Witt CPA Group PLLC, a Bothell-based accounting firm specializing in tax advice for families and small businesses in Snohomish and King counties looking for someone to trust. For high-quality, comprehensive accounting and tax services, visit their website or reach out to them at 425.501.9000.

On December 11, 2025, the U.S. House of Representatives passed the National Association of Home Builders (NAHB)-supported Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act. The legislation focuses on reforming federal permitting requirements under the Clean Water Act with the goal of reducing delays and uncertainty that can slow housing and infrastructure projects.

The vote moves the bill to the U.S. Senate, where lawmakers will continue debating how to balance environmental protections with the need to build homes and infrastructure more efficiently.

What the PERMIT Act Does

The PERMIT Act is intended to streamline environmental permitting and reduce regulatory uncertainty that builders and infrastructure providers say contributes to rising costs and project delays. Key provisions of the bill include:

• Clarifying Clean Water Act jurisdiction by redefining “waters of the United States” and codifying exclusions for features such as waste treatment systems, ephemeral streams, and groundwater.

• Extending and improving nationwide permits to provide longer, more predictable authorization timelines.

• Establishing limits on judicial review timelines to reduce prolonged litigation and project delays.

• Addressing backlogs and inefficiencies in the issuance of jurisdictional determinations.

• Restoring a clearer pathway for states to assume control of their own wetlands permitting programs.

Lawmakers also adopted an NAHB-supported amendment on the House floor that would reduce compensatory mitigation costs through targeted, commonsense reforms. The amendment is intended to maintain environmental protections while improving predictability and supporting economic growth.

Supporters argue these reforms will create regulatory certainty, lower development costs, and help accelerate housing and infrastructure production at a time of acute national need.

What Happens Next

With House passage secured, the PERMIT Act now moves to the U.S. Senate, where its future remains uncertain. The legislation is expected to be part of a broader debate over federal permitting reform, infrastructure delivery, and housing affordability. For homebuilders and policymakers focused on reducing costs and delays, the outcome could have meaningful implications for how quickly new housing and infrastructure projects can move from proposal to construction.

For more details, view the NAHB blog or contact Dylan Sluder, State Government Affairs Manager, at MBAKS via 425.451.7920 for additional information.

FOR IMMEDIATE RELEASE
Media Contact:
Sharon Couts
Master Builders Association of King and Snohomish Counties
425.499.1723

10-Point Action Plan to Fight the Housing Affordability Crisis in the Puget Sound Region to be Announced at 2017 Housing Summit

Free event on Tuesday, October 17, to focus on housing attainability solutions

Bellevue, Wash—October 4, 2017—The Puget Sound area's housing market is in crisis. The demand for housing in our region continues to significantly outpace residential housing supply, making it difficult to purchase reasonably priced homes near job centers. In response, the Master Builders Association of King and Snohomish Counties (MBAKS) has identified a 10-point action plan to help provide attainable housing for our growing population.

"Our region's housing attainability crisis is a big problem that demands bold solutions," said Nick Harper, MBAKS senior director of strategy and policy. "We need to come together to implement a legislative agenda that helps ensure housing opportunities for everyone."

Witness live the unveiling of this bold legislative agenda at the fourth annual MBAKS Housing Summit October 17, at the Meydenbauer Center in Bellevue. The Housing Summit begins at 8:30 a.m. This free event will be emceed by Pat Cashman and will include presentations by top housing experts and area leaders. Featured speakers include:

• Clay White, Principal Planner, LDC Inc
• Elliot Eisenberg, nationally renowned economist
• Jon Nehring, Marysville Mayor
• Gail Luxenberg, executive director, Habitat for Humanity Seattle-King County
• Joe Fitzgibbon, Representative, 34th District
• Brian Bonlender, agency director, Washington State Department of Commerce
• Pat Cashman, emcee, local TV and radio personality

Space is limited. Register online at mbaks.com or by calling (425) 451-7920.

 

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About MBAKS

Founded in 1909, the Master Builders Association of King and Snohomish Counties (MBAKS) has grown to become the largest residential homebuilders association in the United States. With 2,900 member companies, the association is dedicated to membership value, housing advocacy, community service, and financial stewardship throughout the Puget Sound region.