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.

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.

Kimberley Martin is the owner of Cyneburg Scapes. The company creates woodscapes to attain the homeowner’s vision and allow them to enjoy the outdoors at home. Kimberley is actively involved on our PWB Executive Council.

I, Luellen Smith, own Rhino Wine Cellars & Cooling Systems with my husband. Our company designs and installs custom wine cellars and cooling systems for clients around the world. We strive to be the market leader in custom wine cellar design and enjoy turning our clients' wine cellar dreams into a reality. I am honored to be the PWB Council chair this year.

Please join with us in celebrating all PWB tradeswomen this week! We encourage you to share your story with us.

Learn more about PWB at mbaks.com/pwb. Share your story and get involved at facebook.com/groups/MBAKSPWB.

Puget Sound Energy (PSE) is asking the Washington Utilities and Transportation Commission (UTC) to approve significant increases to electric and natural gas rates.

If approved as filed, residential customers would see higher bills beginning in 2027, with additional increases in 2028 and 2029.

These increases deserve scrutiny.

As housing costs continue to rise, we should be asking whether PSE has done everything possible to control costs and whether the costs being passed on to customers are justified.

If approved as filed, the proposed changes would mean an estimated 17.75% increase in the average residential electric bill in January 2027, followed by additional increases in 2028 and 2029. Natural gas customers would see an estimated 12.93% increase in January 2027, with additional increases to follow.

Washington families are already struggling with the cost of housing. Higher utility costs only make it more expensive to build, buy and own a home.

TAKE ACTION

Tell the UTC to scrutinize PSE’s proposed rate increases and hold the utility accountable for the costs it is asking customers to pay.

Please make your voice heard.

Email your comments: comment@utc.wa.gov

Participate directly in one of two upcoming public comment hearings:

• Tuesday, September 29 at 6 p.m. — In person

Utilities and Transportation Commission

621 Woodland Square Loop S.E., Room 110

Lacey, WA 98503

• Wednesday, October 7 at 6 p.m. — Virtual via Zoom or telephone

Join Zoom Meeting: https://utc-wa-gov.zoom.us/j/82213518474?pwd=BmsrsNzVWp6WmOpoBdLBoxxvxD6Qb0.1

Join by Telephone: (253) 215-8782

Meeting ID: 822 1351 8474#

Passcode: 226995#

Your voice matters. The UTC needs to hear directly from customers, businesses and the housing industry about the real-world impact of rising utility costs.

• Require accountability and transparency for costs passed on to customers.
• Protect customers from unnecessary increases that make it harder to afford buying and maintaining a home.
• Ensure PSE is doing everything possible to operate cost-effectively before additional costs are placed on ratepayers.

Please take action today and tell the UTC: Don’t rubber-stamp these burdensome increases. Demand accountability and cost-effectiveness before asking customers to pay more.

Additional information on the filing can be found at www.utc.wa.gov by selecting “Dockets Search” and entering the docket number 260005 for the electric general rate case, 260006 for the natural gas general rate case, or 260113 for transmission network interest expense case into the search bar.

If you have questions on how to participate, please contact andrew.roberts@utc.wa.gov or (360) 664-1101.