Pennsylvania
For Pennsylvania, section 179 conformity is conforms; state section 179 cap is federal limit applies (effective January 1, 2023; for tax years 2003 through 2022, $25,000 with $200,000 phase-out); state section 179 phase-out is federal phase-out applies (effective January 1, 2023); bonus depreciation conformity is decouples — requires add-back; add-back rule is Pennsylvania does not conform to bonus depreciation and does not follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the CARES Act, recorded from its source on 2026-08-15.
- State
- Pennsylvania verified
- Section 179 conformity
- conforms verified
- State Section 179 cap
- federal limit applies (effective January 1, 2023; for tax years 2003 through 2022, $25,000 with $200,000 phase-out) verified
- State Section 179 phase-out
- federal phase-out applies (effective January 1, 2023)
- Bonus depreciation conformity
- decouples — requires add-back
- Add-back rule
- Pennsylvania does not conform to bonus depreciation and does not follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the CARES Act verified
- Has income tax
- yes
What the source says
State Follows Bonus Depreciation-TCJA of 2017 : No Pennsylvania 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. Nor does Pennsylvania follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT). State Follows IRC § 179-TCJA of 2017 : No Effective January 1, 2023, Pennsylvania conforms 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. For tax years 2003 through 2022, for personal income tax purposes, Pennsylvania maintained the $25,000 pre-2003 expense election limit with a phase out of the deduction property with an aggregate cost exceeding $200,000.
— 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 federal limit applies (effective January 1, 2023; for tax years 2003 through 2022, $25,000 with $200,000 phase-out), as of 2026-08-15.
State Follows Bonus Depreciation-TCJA of 2017 : No Pennsylvania 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. Nor does Pennsylvania follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT). State Follows IRC § 179-TCJA of 2017 : No Effective January 1, 2023, Pennsylvania conforms 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. For tax years 2003 through 2022, for personal income tax purposes, Pennsylvania maintained the $25,000 pre-2003 expense election limit with a phase out of the deduction property with an aggregate cost exceeding $200,000.
crosslinktax.com says state section 179 cap is federal limit applies, as of 2026-08-15.
Pennsylvania | No | Yes |
State Section 179 phase-out
accountants.intuit.com says state section 179 phase-out is federal phase-out applies (effective January 1, 2023), as of 2026-08-15.
State Follows Bonus Depreciation-TCJA of 2017 : No Pennsylvania 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. Nor does Pennsylvania follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT). State Follows IRC § 179-TCJA of 2017 : No Effective January 1, 2023, Pennsylvania conforms 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. For tax years 2003 through 2022, for personal income tax purposes, Pennsylvania maintained the $25,000 pre-2003 expense election limit with a phase out of the deduction property with an aggregate cost exceeding $200,000.
crosslinktax.com says state section 179 phase-out is federal phase-out applies, as of 2026-08-15.
Pennsylvania | No | Yes |
Add-back rule
accountants.intuit.com says add-back rule is Pennsylvania does not conform to bonus depreciation and does not follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the CARES Act, as of 2026-08-15.
State Follows Bonus Depreciation-TCJA of 2017 : No Pennsylvania 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. Nor does Pennsylvania follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT). State Follows IRC § 179-TCJA of 2017 : No Effective January 1, 2023, Pennsylvania conforms 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. For tax years 2003 through 2022, for personal income tax purposes, Pennsylvania maintained the $25,000 pre-2003 expense election limit with a phase out of the deduction property with an aggregate cost exceeding $200,000.
crosslinktax.com says add-back rule is Pennsylvania does not conform to bonus depreciation, as of 2026-08-15.
Pennsylvania | No | Yes |
Sources
- accountants.intuit.comhttps://accountants.intuit.com/support/en-us/help-article/asset-depreciation/state-conformity-special-depreciation-allowance/L27kRyetJ_US_en_US
- crosslinktax.comhttps://www.crosslinktax.com/customer-resources/tax-resource-center/tax-updates/state-compliance-with-federal-bonus-depreciation-and-section-179-expensing-2025/