# North Carolina — State conformity to federal Section 179 and bonus depreciation rules For North Carolina, section 179 conformity is does not conform; state section 179 cap is adjustments must be made; state section 179 phase-out is state rules apply; bonus depreciation conformity is decouples — requires add-back; add-back rule is adjustments must be made, recorded from its source on 2026-08-15. - **State:** North Carolina _(verified: appears in the quote below)_ - **Section 179 conformity:** does not conform _(verified: appears in the quote below)_ - **State Section 179 cap:** adjustments must be made _(verified: appears in the quote below)_ - **State Section 179 phase-out:** state rules apply - **Bonus depreciation conformity:** decouples — requires add-back - **Add-back rule:** adjustments must be made _(verified: appears in the quote below)_ - **Has income tax:** yes ## What the source says > State Follows Bonus Depreciation-TCJA of 2017 : No North Carolina 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. Adjustments must be made. State Follows IRC § 179-TCJA of 2017 : No North Carolina 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. Adjustments must be made. ## 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. ### Section 179 conformity accountants.intuit.com says section 179 conformity is **does not conform**, as of 2026-08-15. > State Follows Bonus Depreciation-TCJA of 2017 : No North Carolina 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. Adjustments must be made. State Follows IRC § 179-TCJA of 2017 : No North Carolina 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. Adjustments must be made. Source: https://accountants.intuit.com/support/en-us/help-article/asset-depreciation/state-conformity-special-depreciation-allowance/L27kRyetJ_US_en_US crosslinktax.com says section 179 conformity is **conforms with state cap**, as of 2026-08-15. > North Carolina | Over 6 years | Over 6 years | Bonus Depreciation & Sec 179– 15% 1 st yr, 20% each year for next 5 years 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 cap accountants.intuit.com says state section 179 cap is **adjustments must be made**, as of 2026-08-15. > State Follows Bonus Depreciation-TCJA of 2017 : No North Carolina 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. Adjustments must be made. State Follows IRC § 179-TCJA of 2017 : No North Carolina 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. Adjustments must be made. 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 **15% first year, 20% each year for next 5 years**, as of 2026-08-15. > North Carolina | Over 6 years | Over 6 years | Bonus Depreciation & Sec 179– 15% 1 st yr, 20% each year for next 5 years 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 **adjustments must be made**, as of 2026-08-15. > State Follows Bonus Depreciation-TCJA of 2017 : No North Carolina 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. Adjustments must be made. State Follows IRC § 179-TCJA of 2017 : No North Carolina 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. Adjustments must be made. 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 **Bonus Depreciation & Sec 179– 15% 1st yr, 20% each year for next 5 years**, as of 2026-08-15. > North Carolina | Over 6 years | Over 6 years | Bonus Depreciation & Sec 179– 15% 1 st yr, 20% each year for next 5 years 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/).