# Kentucky — State conformity to federal Section 179 and bonus depreciation rules For Kentucky, section 179 conformity is conforms with state cap; state section 179 cap is $100,000 (for property placed in service on or after January 1, 2020; IRC § 179 in effect on December 31, 2003); state section 179 phase-out is phase-out provisions in effect in 2003 do not apply; bonus depreciation conformity is decouples — requires add-back; add-back rule is 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, recorded from its source on 2026-08-15. - **State:** Kentucky _(verified: appears in the quote below)_ - **Section 179 conformity:** conforms with state cap - **State Section 179 cap:** $100,000 (for property placed in service on or after January 1, 2020; IRC § 179 in effect on December 31, 2003) - **State Section 179 phase-out:** phase-out provisions in effect in 2003 do not apply - **Bonus depreciation conformity:** decouples — requires add-back - **Add-back rule:** 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 _(verified: appears in the quote below)_ - **IRC conformity date:** IRC as of December 31, 2001 (for depreciation) - **Has income tax:** yes _(verified: appears in the quote below)_ - **Statute or guidance citation:** IRC § 168 in effect on December 31, 2001; IRC § 179 in effect on December 31, 2003 ## What the source says > Yes Kansas conforms to the IRC as amended and therefore conforms to the provision of the Tax Cuts and Jobs Act 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. State Follows Bonus Depreciation-TCJA of 2017 : No Kentucky 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 September 27, 2017, and before January 1, 2023. For property placed in service after September 10, 2001, 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. ## 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 cap accountants.intuit.com says state section 179 cap is **$100,000 (for property placed in service on or after January 1, 2020; IRC § 179 in effect on December 31, 2003)**, as of 2026-08-15. > Yes Kansas conforms to the IRC as amended and therefore conforms to the provision of the Tax Cuts and Jobs Act 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. State Follows Bonus Depreciation-TCJA of 2017 : No Kentucky 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 September 27, 2017, and before January 1, 2023. For property placed in service after September 10, 2001, 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. 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 cap is **$100,000**, as of 2026-08-15. > Yes | | Kentucky | No | No | Sec 179 limit – $100,000 | Source: https://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/ ### State Section 179 phase-out accountants.intuit.com says state section 179 phase-out is **phase-out provisions in effect in 2003 do not apply**, as of 2026-08-15. > Yes Kansas conforms to the IRC as amended and therefore conforms to the provision of the Tax Cuts and Jobs Act 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. State Follows Bonus Depreciation-TCJA of 2017 : No Kentucky 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 September 27, 2017, and before January 1, 2023. For property placed in service after September 10, 2001, 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. 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. > Yes | | Kentucky | No | No | Sec 179 limit – $100,000 | 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 **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**, as of 2026-08-15. > Yes Kansas conforms to the IRC as amended and therefore conforms to the provision of the Tax Cuts and Jobs Act 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. State Follows Bonus Depreciation-TCJA of 2017 : No Kentucky 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 September 27, 2017, and before January 1, 2023. For property placed in service after September 10, 2001, 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. 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 **Kentucky does not conform to bonus depreciation**, as of 2026-08-15. > Yes | | Kentucky | No | No | Sec 179 limit – $100,000 | 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/).