State conformity to federal Section 179 and bonus depreciation rules
Whether each US state conforms to the federal Section 179 expensing limit and the 100% bonus depreciation deduction, and what state-specific caps or add-back rules apply when it does not. Each record is one state, stating its conformity status for both Section 179 and bonus depreciation, the state's own Section 179 dollar cap if different from federal, whether the state requires a bonus depreciation add-back, the depreciation method the state uses instead, and a statute or administrative citation. The federal Section 179 limit for 2026 is $2,560,000 with a $4,090,000 phase-out; 100% bonus depreciation was made permanent by the One Big Beautiful Bill Act (January 2025). At least a dozen states decouple from bonus depreciation (California, New York, New Jersey, Pennsylvania, Massachusetts, DC, Connecticut, Maryland, Tennessee, North Carolina, Indiana, Wisconsin among others), and several cap Section 179 far below the federal limit (California: $25,000; New Jersey: $25,000; Pennsylvania: not allowed for corporate income tax). A $480,000 equipment purchase in California produces roughly $51,000 in extra state tax in year one. Answers 'does my state allow bonus depreciation', 'what is the Section 179 limit in [state]', 'do I have to add back bonus depreciation on my state return', and 'which states decouple from federal depreciation rules'.
Records51
Sources4
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LicenceState tax conformity positions are facts derived from state statutes and revenue department publications; not copyrightable. Sources are tax software support pages, CPA educational articles, and state revenue department publications.
29 records where two or more sources state different values. Both sides are reproduced on the record page, each with its own source and quote.
The data
| State | Section 179 conformity | State Section 179 cap | State Section 179 phase-out | Bonus depreciation conformity | Add-back rule | IRC conformity date | Has income tax | Statute or guidance citation |
|---|---|---|---|---|---|---|---|---|
| Alabama | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| Alaska | N/A | N/A | N/A | N/A | N/A | N/A | no | |
| Arizonasources differ | conforms | federal limit applies | federal phase-out applies | conforms | N/A | IRC as of January 1, 2019 | yes | IRC § 168(k), in effect as of 01/01/2017 |
| Arkansassources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | state does not conform to bonus depreciation; adjustment required | IRC as of January 1, 2022 | yes | IRC §179 as in effect on January 1, 2022 |
| Californiasources differ | conforms with state cap | state cap applies (does not conform to TCJA increase to $1 million) | state phase-out applies | decouples — requires add-back | California does not conform to bonus depreciation; adjustment required | yes | ||
| Colorado | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| Connecticutsources differ | conforms with state cap | 80% of IRC § 179 deduction is disallowed; 25% of disallowed portion allowed in each of the four succeeding income years | state rules apply | decouples — requires add-back | any additional allowance for bonus depreciation under IRC § 168(k) must be added back; 25% of the disallowed deduction may be deducted for each of the four succeeding tax years | yes | ||
| Delaware | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| District of Columbia | conforms with state cap | $25,000 | state rules apply | decouples — requires add-back | District of Columbia does not conform to bonus depreciation | yes | ||
| Florida | N/A | N/A | N/A | N/A | N/A | N/A | no | |
| Georgiasources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | Georgia's IRC conformity specifically excludes IRC § 168(k) | yes | IRC § 168(k) specifically excluded | |
| Hawaiisources differ | conforms with state cap | $25,000 | $200,000 | decouples — requires add-back | Hawaii does not conform to IRC § 168(k) | yes | IRC Section 179(b)(1), IRC Section 179(b)(2) | |
| Idahosources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | Idaho does not conform to bonus depreciation; adjustment required | yes | ||
| Illinoissources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | for taxable years beginning after December 31, 2021, the state decouples from the 100% depreciation deduction | yes | ||
| Indianasources differ | conforms with state cap | $25,000 | state rules apply | decouples — requires add-back | Indiana does not conform to bonus depreciation; adjustment required | yes | ||
| Iowasources differ | conforms | federal limit applies (fully conforms beginning tax year 2020) | federal phase-out applies | decouples — requires add-back | Iowa does not conform to bonus depreciation; adjustment required | yes | IRC § 179 | |
| Kansas | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| Kentuckysources differ | conforms with state cap | $100,000 (for property placed in service on or after January 1, 2020; IRC § 179 in effect on December 31, 2003) | phase-out provisions in effect in 2003 do not apply | decouples — requires add-back | only the depreciation deduction allowed under IRC § 168 of the Internal Revenue Code in effect on December 31, 2001, exclusive of any amendments made subsequent to that date, are allowed | IRC as of December 31, 2001 (for depreciation) | yes | IRC § 168 in effect on December 31, 2001; IRC § 179 in effect on December 31, 2003 |
| Louisiana | conforms | federal limit applies | federal phase-out applies | conforms | N/A | yes | ||
| Mainesources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | addition modification applies to all property placed in service in Maine; Maine capital investment credit may be claimed | IRC as of a specified date | yes | |
| Marylandsources differ | does not conform | does not conform to TCJA increase | state rules apply | decouples — requires add-back | Maryland does not conform to bonus depreciation; adjustment required | yes | ||
| Massachusettssources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | Massachusetts specifically decoupled from the federal bonus depreciation provisions under IRC § 168(k) | rolling conformity | yes | IRC § 168(k) |
| Michigansources differ | conforms | federal limit applies (if taxpayer elects to use current IRC) | federal phase-out applies | conforms | N/A | current IRC (if taxpayer elects) | yes | |
| Minnesotasources differ | conforms | federal limit applies (full conformity beginning tax year 2020) | federal phase-out applies | decouples — requires add-back | Taxpayers must add back 80% of the federal depreciation bonus to their Minnesota return in the first year and then 20% of the addback amount can be subtracted in each of the next 5 years | yes | ||
| Mississippisources differ | conforms | federal limit applies | federal phase-out applies | partial conformity | Mississippi regulations provide that bonus depreciation is not considered 'reasonable.' However, effective July 1, 2021, Mississippi expressly provides that, for new or used aircraft, equipment, engines, or other parts and tools used for aviation, the allowance for bonus depreciation conforms to federal bonus depreciation rates. For tax years beginning after December 31, 2022, expenditures for business assets that are qualified property or qualified improvement property are eligible for 100% bonus depreciation. | yes | ||
| Missouri | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| Montana | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| Nebraska | conforms | federal limit applies | federal phase-out applies | conforms | N/A | yes | ||
| Nevada | N/A | N/A | N/A | N/A | N/A | N/A | no | |
| New Hampshiresources differ | N/A | N/A | N/A | N/A | N/A | N/A | no | |
| New Jerseysources differ | conforms with state cap | IRC as it was in effect on December 31, 2002 | state rules apply (IRC as of December 31, 2002) | decouples — requires add-back | New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001 | IRC as of December 31, 2002 (Section 179); IRC as of December 31, 2001 (depreciation) | yes | |
| New Mexico | conforms | federal limit applies | federal phase-out applies | conforms | N/A | yes | ||
| New Yorksources differ | conforms | federal limit applies (but New York disallows IRC § 179 for SUVs that are not passenger automobiles as defined in IRC § 280F(d)(5)) | federal phase-out applies | decouples — requires add-back | New York does not conform to bonus depreciation; adjustment required | yes | IRC § 280F(d)(5) | |
| North Carolinasources differ | does not conform | adjustments must be made | state rules apply | decouples — requires add-back | adjustments must be made | yes | ||
| North Dakota | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| Ohiosources differ | conforms with state cap | add back five-sixths of the excess of the IRC section 179 amount allowed over the amount which would have been allowed based upon IRC section 179 in effect on December 31, 2002; deduct 1/5 of the qualifying section 179 amounts added back on a previous year's tax report | state rules apply (IRC as of December 31, 2002) | decouples — requires add-back | Ohio has decoupled from the changes made by the TCJA to IRC § 168(k) | IRC as of a specified date | yes | |
| Oklahoma | conforms | federal limit applies | federal phase-out applies | conforms | N/A | yes | ||
| Oregon | conforms | federal limit applies | federal phase-out applies | conforms | N/A | yes | ||
| Pennsylvaniasources differ | conforms | federal limit applies (effective January 1, 2023; for tax years 2003 through 2022, $25,000 with $200,000 phase-out) | federal phase-out applies (effective January 1, 2023) | decouples — requires add-back | Pennsylvania does not conform to bonus depreciation and does not follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the CARES Act | yes | ||
| Rhode Islandsources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | Rhode Island does not conform to bonus depreciation; adjustment required | yes | ||
| South Carolinasources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | South Carolina does not allow bonus depreciation. Addition or subtraction is required for the difference in depreciation expense claimed for federal purposes and the amount allowed for state purposes. | yes | ||
| South Dakota | N/A | N/A | N/A | N/A | N/A | N/A | no | |
| Tennessee | N/A | N/A | N/A | decouples — requires add-back | Tennessee is listed among states that decouple from bonus depreciation | no | ||
| Texas | N/A | N/A | N/A | N/A | N/A | N/A | no | |
| Utah | conforms | federal limit applies | federal phase-out applies | conforms | N/A | rolling conformity | yes | |
| Vermontsources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | Vermont has decoupled from the federal bonus depreciation provision | IRC as amended through a specific date | yes | |
| Virginiasources differ | conforms | federal limit applies | federal phase-out applies | decouples — requires add-back | Virginia disallows any bonus depreciation for certain assets under IRC § 168(k) | yes | IRC § 168(k) | |
| Washington | N/A | N/A | N/A | N/A | N/A | N/A | no | |
| West Virginiasources differ | conforms | federal limit applies | federal phase-out applies | conforms | N/A | IRC as amended in 2019 | yes | |
| Wisconsinsources differ | does not conform | does not conform to TCJA increase | state rules apply | decouples — requires add-back | Wisconsin does not conform to bonus depreciation; adjustment required | yes | ||
| Wyoming | N/A | N/A | N/A | N/A | N/A | N/A | no |
Where this came from
Every record above links the page it was taken from and quotes the sentence that states it. These are the 4 sources this dataset was assembled from.
- crosslinktax.comhttps://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/
- accountants.intuit.comhttps://accountants.intuit.com/support/en-us/help-article/asset-depreciation/state-conformity-special-depreciation-allowance/L27kRyetJ_US_en_US
- section179.orghttps://www.section179.org/section_179_by_state/
- ecomcpa.comhttps://ecomcpa.com/when-federal-100-bonus-depreciation-doesnt-travel-the-state-conformity-headache-for-ecommerce-sellers-in-2026/
Machine-readable
- data.jsonThe whole dataset — every record with its source URL and source quote.
- Open Knowledge Format bundleOne JSON object per line — every record's frontmatter and quoted span exactly as it is held here, in one fetch.
- How this is made and checkedWhat "verified against source" does and does not mean.