# New Jersey — State conformity to federal Section 179 and bonus depreciation rules For New Jersey, section 179 conformity is conforms with state cap; state section 179 cap is IRC as it was in effect on December 31, 2002; state section 179 phase-out is state rules apply (IRC as of December 31, 2002); bonus depreciation conformity is decouples — requires add-back; add-back rule is New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001, recorded from its source on 2026-08-15. - **State:** New Jersey _(verified: appears in the quote below)_ - **Section 179 conformity:** conforms with state cap - **State Section 179 cap:** IRC as it was in effect on December 31, 2002 _(verified: appears in the quote below)_ - **State Section 179 phase-out:** state rules apply (IRC as of December 31, 2002) _(verified: appears in the quote below)_ - **Bonus depreciation conformity:** decouples — requires add-back - **Add-back rule:** New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001 _(verified: appears in the quote below)_ - **IRC conformity date:** IRC as of December 31, 2002 (Section 179); IRC as of December 31, 2001 (depreciation) _(verified: appears in the quote below)_ - **Has income tax:** yes ## What the source says > State Follows Bonus Depreciation-TCJA of 2017 : No New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001. Thus, New Jersey does not conform to the provision of the Tax Cuts and Jobs Act of 2017. State Follows IRC § 179-TCJA of 2017 : No New Jersey does not conform to the Tax Cuts and Jobs Act provision 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. New Jersey conforms to the IRC as it was in effect on December 31, 2002 and does not conform to the enhanced expenses set forth in the Tax Cuts and Jobs Act of 2017. ## 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 **IRC as it was in effect on December 31, 2002**, as of 2026-08-15. > State Follows Bonus Depreciation-TCJA of 2017 : No New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001. Thus, New Jersey does not conform to the provision of the Tax Cuts and Jobs Act of 2017. State Follows IRC § 179-TCJA of 2017 : No New Jersey does not conform to the Tax Cuts and Jobs Act provision 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. New Jersey conforms to the IRC as it was in effect on December 31, 2002 and does not conform to the enhanced expenses set forth in the Tax Cuts and Jobs Act of 2017. 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 **$25,000**, as of 2026-08-15. > Yes | | New Hampshire | No | No | Sec 179 limit – $500,000 | New Jersey | No | No | Sec 179 limit – $25,000 | Source: https://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/ ecomcpa.com says state section 179 cap is **$25,000**, as of 2026-08-15. > New Jersey caps it at $25,000 too. Source: https://ecomcpa.com/when-federal-100-bonus-depreciation-doesnt-travel-the-state-conformity-headache-for-ecommerce-sellers-in-2026/ ### State Section 179 phase-out accountants.intuit.com says state section 179 phase-out is **state rules apply (IRC as of December 31, 2002)**, as of 2026-08-15. > State Follows Bonus Depreciation-TCJA of 2017 : No New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001. Thus, New Jersey does not conform to the provision of the Tax Cuts and Jobs Act of 2017. State Follows IRC § 179-TCJA of 2017 : No New Jersey does not conform to the Tax Cuts and Jobs Act provision 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. New Jersey conforms to the IRC as it was in effect on December 31, 2002 and does not conform to the enhanced expenses set forth in the Tax Cuts and Jobs Act of 2017. 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 | | New Hampshire | No | No | Sec 179 limit – $500,000 | New Jersey | No | No | Sec 179 limit – $25,000 | Source: https://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/ ecomcpa.com says state section 179 phase-out is **state rules apply**, as of 2026-08-15. > New Jersey caps it at $25,000 too. Source: https://ecomcpa.com/when-federal-100-bonus-depreciation-doesnt-travel-the-state-conformity-headache-for-ecommerce-sellers-in-2026/ ### Add-back rule accountants.intuit.com says add-back rule is **New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001**, as of 2026-08-15. > State Follows Bonus Depreciation-TCJA of 2017 : No New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001. Thus, New Jersey does not conform to the provision of the Tax Cuts and Jobs Act of 2017. State Follows IRC § 179-TCJA of 2017 : No New Jersey does not conform to the Tax Cuts and Jobs Act provision 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. New Jersey conforms to the IRC as it was in effect on December 31, 2002 and does not conform to the enhanced expenses set forth in the Tax Cuts and Jobs Act of 2017. 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 **New Jersey does not conform to bonus depreciation**, as of 2026-08-15. > Yes | | New Hampshire | No | No | Sec 179 limit – $500,000 | New Jersey | No | No | Sec 179 limit – $25,000 | Source: https://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/ ecomcpa.com says add-back rule is **state requires add-back of bonus depreciation**, as of 2026-08-15. > New Jersey caps it at $25,000 too. Source: https://ecomcpa.com/when-federal-100-bonus-depreciation-doesnt-travel-the-state-conformity-headache-for-ecommerce-sellers-in-2026/ ## 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/ - https://ecomcpa.com/when-federal-100-bonus-depreciation-doesnt-travel-the-state-conformity-headache-for-ecommerce-sellers-in-2026/ 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/).