Accounting and Tax Preparation Washington Businesses Should Plan For Before 2029
Early in 2026, Washington passed a law that will eventually raise the annual filing threshold and double the state's small business B&O tax credit, but "eventually" is the key word. For this year's filings, nothing changes, and the upcoming change includes a genuine contingency that the majority of the bill's coverage omitted. Under Engrossed Substitute Senate Bill 6346, which Governor Bob Ferguson signed on March 30, 2026, the small business B&O credit will increase from $55 to $125 per month for nonservice businesses and from $160 to $375 per month for service businesses. Additionally, the annual B&O filing threshold will rise from $125,000 to $250,000. That won't start working until January 1, 2029. The immediate value for a company that provides accounting and tax preparation for clients in Washington today isn't applying a credit that doesn't yet exist, but anticipating it and helping clients make three-year plans instead of assuming ...