# Hawaii — State conformity to federal Section 179 and bonus depreciation rules

For Hawaii, section 179 conformity is conforms with state cap; state section 179 cap is $25,000; state section 179 phase-out is $200,000; bonus depreciation conformity is decouples — requires add-back; add-back rule is Hawaii does not conform to IRC § 168(k), recorded from its source on 2026-08-15.

- **State:** Hawaii _(verified: appears in the quote below)_
- **Section 179 conformity:** conforms with state cap
- **State Section 179 cap:** $25,000 _(verified: appears in the quote below)_
- **State Section 179 phase-out:** $200,000 _(verified: appears in the quote below)_
- **Bonus depreciation conformity:** decouples — requires add-back
- **Add-back rule:** Hawaii does not conform to IRC § 168(k) _(verified: appears in the quote below)_
- **Has income tax:** yes
- **Statute or guidance citation:** IRC Section 179(b)(1), IRC Section 179(b)(2)

## What the source says

> State Follows Bonus Depreciation-TCJA of 2017 : No Hawaii does not conform to the provision of the Tax Cuts and Jobs Act that provides a 100% first-year deduction for the adjusted basis that is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Hawaii does not conform to IRC § 168(k). State Follows IRC § 179-TCJA of 2017 : No Hawaii does not conform to the provision in the Tax Cuts and Jobs Act that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation. The aggregate cost provided in IRC Section 179(b)(1) which may be taken into account for IRC Section 179(a) for any taxable year cannot exceed $25,000. The amount at which the reduction limitation provided in IRC Section 179(b)(2) begins must exceed $200,000 for any taxable year.

## 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.

### State Section 179 phase-out

accountants.intuit.com says state section 179 phase-out is **$200,000**, as of 2026-08-15.

> State Follows Bonus Depreciation-TCJA of 2017 : No Hawaii does not conform to the provision of the Tax Cuts and Jobs Act that provides a 100% first-year deduction for the adjusted basis that is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Hawaii does not conform to IRC § 168(k). State Follows IRC § 179-TCJA of 2017 : No Hawaii does not conform to the provision in the Tax Cuts and Jobs Act that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation. The aggregate cost provided in IRC Section 179(b)(1) which may be taken into account for IRC Section 179(a) for any taxable year cannot exceed $25,000. The amount at which the reduction limitation provided in IRC Section 179(b)(2) begins must exceed $200,000 for any taxable year.

Source: https://accountants.intuit.com/support/en-us/help-article/asset-depreciation/state-conformity-special-depreciation-allowance/L27kRyetJ_US_en_US

crosslinktax.com says state section 179 phase-out is **state rules apply**, as of 2026-08-15.

> Hawaii | No | No | Sec 179 limit – $25,000 | Idaho | No | Yes |

Source: https://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/


### Add-back rule

accountants.intuit.com says add-back rule is **Hawaii does not conform to IRC § 168(k)**, as of 2026-08-15.

> State Follows Bonus Depreciation-TCJA of 2017 : No Hawaii does not conform to the provision of the Tax Cuts and Jobs Act that provides a 100% first-year deduction for the adjusted basis that is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Hawaii does not conform to IRC § 168(k). State Follows IRC § 179-TCJA of 2017 : No Hawaii does not conform to the provision in the Tax Cuts and Jobs Act that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation. The aggregate cost provided in IRC Section 179(b)(1) which may be taken into account for IRC Section 179(a) for any taxable year cannot exceed $25,000. The amount at which the reduction limitation provided in IRC Section 179(b)(2) begins must exceed $200,000 for any taxable year.

Source: https://accountants.intuit.com/support/en-us/help-article/asset-depreciation/state-conformity-special-depreciation-allowance/L27kRyetJ_US_en_US

crosslinktax.com says add-back rule is **Hawaii does not conform to bonus depreciation**, as of 2026-08-15.

> Hawaii | No | No | Sec 179 limit – $25,000 | Idaho | No | Yes |

Source: https://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/


## Source

- https://accountants.intuit.com/support/en-us/help-article/asset-depreciation/state-conformity-special-depreciation-allowance/L27kRyetJ_US_en_US
- https://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/

Last verified: 2026-08-15. Review by: 2027-08-15.
Part of [State conformity to federal Section 179 and bonus depreciation rules](https://referencesource.org/state-section-179-bonus-depreciation-conformity/).