California
For California, section 179 conformity is conforms with state cap; state section 179 cap is disputed: state cap applies (does not conform to TCJA increase to $1 million) per accountants.intuit.com, $25,000 per ecomcpa.com; state section 179 phase-out is disputed: state phase-out applies per accountants.intuit.com, $200,000 per ecomcpa.com; bonus depreciation conformity is decouples — requires add-back; add-back rule is disputed: California does not conform to bonus depreciation; adjustment required per accountants.intuit.com, The state requires the addback. California allows the asset to depreciate over its MACRS life per ecomcpa.com, recorded from its source on 2026-08-15; source re-checked 2026-10-01.
- State
- California verified
- Section 179 conformity
- conforms with state cap our reading
- State Section 179 cap
- state cap applies (does not conform to TCJA increase to $1 million) sources disagree
- State Section 179 phase-out
- state phase-out applies our reading sources disagree
- Bonus depreciation conformity
- decouples — requires add-back our reading
- Add-back rule
- California does not conform to bonus depreciation; adjustment required our reading sources disagree
- Has income tax
- yes our reading
Values marked our reading are our classification of what the source says — the source does not print them in those words. The quote below is the evidence for each one; judge it yourself.
What the source says
State Follows Bonus Depreciation-TCJA of 2017 : No California does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after 09/27/2017, and before 01/01/2023. State Follows IRC § 179-TCJA of 2017: No California does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
— accountants.intuit.com, retrieved 2026-08-15
Sources disagree
More than one authority states this, and they do not state the same thing. Both are reproduced with the source each came from — deciding between them is yours, not ours.
State Section 179 cap
accountants.intuit.com says state section 179 cap is state cap applies (does not conform to TCJA increase to $1 million), as of 2026-08-15.
State Follows Bonus Depreciation-TCJA of 2017 : No California does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after 09/27/2017, and before 01/01/2023. State Follows IRC § 179-TCJA of 2017: No California does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
ecomcpa.com says state section 179 cap is $25,000, as of 2026-08-15.
California caps Section 179 at $25,000 with a $200,000 phase-out.
State Section 179 phase-out
accountants.intuit.com says state section 179 phase-out is state phase-out applies, as of 2026-08-15.
State Follows Bonus Depreciation-TCJA of 2017 : No California does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after 09/27/2017, and before 01/01/2023. State Follows IRC § 179-TCJA of 2017: No California does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
ecomcpa.com says state section 179 phase-out is $200,000, as of 2026-08-15.
California caps Section 179 at $25,000 with a $200,000 phase-out.
Add-back rule
accountants.intuit.com says add-back rule is California does not conform to bonus depreciation; adjustment required, as of 2026-08-15.
State Follows Bonus Depreciation-TCJA of 2017 : No California does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after 09/27/2017, and before 01/01/2023. State Follows IRC § 179-TCJA of 2017: No California does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
ecomcpa.com says add-back rule is The state requires the addback. California allows the asset to depreciate over its MACRS life, as of 2026-08-15.
California caps Section 179 at $25,000 with a $200,000 phase-out.
Sources
- accountants.intuit.comhttps://accountants.intuit.com/support/en-us/help-article/asset-depreciation/state-conformity-special-depreciation-allowance/L27kRyetJ_US_en_US
- ecomcpa.comhttps://ecomcpa.com/when-federal-100-bonus-depreciation-doesnt-travel-the-state-conformity-headache-for-ecommerce-sellers-in-2026/