State Conformity with Federal Bonus Depreciation Rules

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Need an easy, accurate way to comply with state depreciation across multiple states? Expertly manage the largest expenditure on your company’s balance sheet with efficiency and confidence.

Your Guide Through the State Depreciation Maze

Calculating state bonus depreciation can be a full-time job. For an easy, accurate way to comply with depreciation across multiple states—from California bonus depreciation to New York bonus depreciation, rely on Advantage Fixed Assets State Books – your solution to handling complex calculations for non-conforming states that goes far beyond simple “no-bonus” calculations.

State Conformity Resources

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Three Ways to Detangle State Conformity

Calculating state depreciation has long been a source of frustration and stress, with tax accountants going cross-eyed staring at complicated spreadsheets while under the looming threat of audits or fines.

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Unpacking the Challenges of State Tax Depreciation

As tax practitioners, we sometimes wish states would all follow the federal treatment when it comes to calculating taxable income. But alas, states have a choice to conform or not conform to the Internal Revenue Code, and the result is added complexity. In the area of fixed assets, state non-conformity isn’t as simple as “bonus/no-bonus”, and practitioners need to be aware of the various (and sometimes downright strange) treatment of fixed assets depreciation across the 50 states.

State Conformity With Federal Bonus Depreciation Rules

Alabama

Corporate: Partial conformity. While Alabama conforms to the federal treatment of bonus depreciation, Alabama does not permit bonus depreciation for property acquired after Dec. 31, 2007 and placed in service before Jan. 1, 2009. Ala. Code § 40-18-33; Alabama Analysis of Federal Tax Law Revisions on the State of Alabama (July 30, 2018); CITN AL 5.3.1.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Alaska

Corporate: Partial conformity. While Alaska conforms to the federal treatment of bonus depreciation, including amendments made by the 2017 tax act, oil and gas producers are required to follow I.R.C. § 167 as was in effect on June 30, 1981. Alaska Stat. § 43.20.021(a)Alaska Stat. § 43.20.144(b)(4)Alaska Admin. Code tit. 15, § 20.480(b)AK CITN 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Arizona

Corporate: Arizona does not conform to the federal treatment of bonus depreciation and requires an addition modification for any bonus depreciation taken, but then allows a corresponding deduction, which is computed as if the taxpayer had not elected bonus depreciation. Ariz. Rev. Stat. Ann. § 43-1121(4)as amended by 2018 Ariz. S.B. 1294effective March 20, 2018; Ariz. Rev. Stat. Ann. § 43-1122(22)as amended by 2018 Ariz. S.B. 1294effective March 20, 2018; Arizona Dept. of Rev., Income Tax Notice for Corporate Taxpayers (June 4, 2019); CITN AZ 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. Arizona has a static I.R.C. conformity date of Jan. 1, 2019, for taxable years beginning from and after Dec. 31, 2018, and Jan. 1, 2018, for taxable years beginning from and after Dec. 31, 2017, through Dec. 31, 2018. I.R.C. § 168(k).

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Arkansas

Corporate: Arkansas does not conform to the federal treatment of bonus depreciation and requires taxpayers to add back any bonus depreciation deducted at the federal level. Ark. Code Ann. § 26-51-428(a)as amended by 2019 Ark. H.B. 1953effective for taxable years beginning on or after Jan. 1, 2019; Arkansas Schedule 1100REC: Corporation Income Tax Reconciliation ScheduleCITN AR 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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California

Corporate: California does not conform to the federal treatment of bonus depreciation. California provides its own set of rules for calculating depreciation and requires an addition modification for bonus depreciation deducted at the federal level. Cal. Rev. & Tax. Code § 24349CITN CA 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Colorado

Corporate: Colorado conforms to the federal treatment of bonus depreciation. Colo. Rev. Stat. § 39-22-304CITN CO 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Connecticut

Corporate: Connecticut does not conform to the federal treatment of bonus depreciation, because Connecticut has passed legislation decoupling from I.R.C. § 168(k). Taxpayers are required to add back any bonus depreciation deduction taken at the federal level in computing Connecticut net income, but 25 percent of the amount added back in the prior year may be subtracted in each of the four succeeding years. Connecticut has decoupled from I.R.C. § 168(k), and therefore does not conform to the amendments to I.R.C. § 168(k) made by the 2017 tax act. Conn. Gen. Stat. § 12-217(b)(1)as amended by 2018 Conn. S.B. 11effective May 31, 2018; Connecticut Office of the Commissioner Guidance OCG-5 (June 14, 2018); Connecticut Special Notice SN 2018(9.1) (March 1, 2019) (provides conformity information for Connecticut state income tax purposes); CITN CT 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Delaware

Corporate: Delaware conforms to the federal treatment of bonus depreciation. Del. Code Ann. tit. 30, § 1901(10)Del. Code Ann. tit. 30, § 1903(a)CITN DE 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered he Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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District of Columbia

Corporate: The District of Columbia does not conform to the federal treatment of bonus depreciation. D.C. Code Ann. § 47-1803.03(a)(7)CITN DC 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Florida

Corporate: Florida does not conform to the federal treatment of bonus depreciation. Amounts deducted as bonus depreciation under I.R.C. § 168(k) for assets placed in service after Dec. 31, 2007, but before Jan. 1, 2027, must be added back; however, a state deduction is permitted over the next seven years for one-seventh of the amounts that were added back. Fla. Stat. § 220.13(1)(e)(1)as amended by 2018 Fla. H.B. 7093effective retroactively to Jan. 1, 2018; Florida Tax Information Publication 15C01-04CITN FL 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. Florida has a static conformity date, and has passed 2019 Fla. H.B. 7127 conforming to the amended provisions, with certain exceptions. I.R.C. § 168(k).

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Georgia

Corporate: Partial conformity. Georgia specifically decouples from I.R.C. § 168(k), however the state conforms to the federal treatment of bonus depreciation related to qualified property under I.R.C. Section 168(k)(2)(A)(i), Section 168(k)(2)(D)(i), and Section 168(k)(2)(E)). Ga. Code Ann. § 48-1-2(14)as amended by 2019 Ga. H.B. 419effective for taxable years beginning on or after Jan. 1, 2018; CITN GA 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Georgia has a static conformity date, and has passed 2019 Ga. H.B. 419, conforming to the version of the Internal Revenue Code in effect on Jan. 1, 2019, with certain exceptions.

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Hawaii

Corporate: Hawaii does not conform to the federal treatment of bonus depreciation. Hawaii specifically does not adopt I.R.C. § 168(k)Haw. Rev. Stat. § 235-2.4(m)CITN HI 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Idaho

Corporate: Idaho does not conform to the federal treatment of bonus depreciation. Idaho provides an exception for property placed into service in 2008 and 2009. Idaho Code § 63-3022O(1)Idaho Admin. Rules § 35.01.01.105.06Idaho Regs. § 35.01.01.125; Idaho State Tax Comn., Web Publication – Bonus Depreciation (2013); Idaho State Tax Comn., Conformity to Federal Internal Revenue Code(2013); CITN ID 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Illinois

Corporate: Illinois conforms to the federal treatment of bonus depreciation. 35 ILCS 5/203(b)(2)(T)35 ILCS 5/203(b)(2)(E-10); Illinois Dept. of Rev., Instructions for Special Depreciation; Illinois Dept. of Rev., Explanation of the Impact on Illinois Tax Revenue Resulting From the Federal Tax Cuts and Jobs Act (March 1, 2018); CITN IL 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Indiana

Corporate: Indiana does not conform to the federal treatment of bonus depreciation. Indiana requires an addition modification to federal taxable income for bonus depreciation taken at the federal level. Ind. Code Ann. § 6-3-1-3.5(b)(5)Ind. Code Ann. § 6-3-1-33as amended by2019 Ind. S.B. 565effective retroactively to Jan. 1, 2019; CITN IN 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Iowa

Corporate: Iowa does not conform to bonus depreciation, except that bonus depreciation is allowed for certain qualified property acquired after May 5, 2003 and prior to Jan. 1, 2005. Iowa Code Ann. § 422.35(19)Iowa Admin. Code r. 701–53.22(422)CITN IA 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Iowa has a static conformity date, and has passed 2018 Iowa S.F. 2417 conforming, for tax years beginning on or after Jan. 1, 2019, to amendments made by Pub. L. 115-97.

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Kansas

Corporate: Kansas conforms to the federal treatment of bonus depreciation. Kan. Stat. Ann. § 79-32,138CITN KS 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Kentucky

Corporate: Kentucky does not conform to the federal treatment of bonus depreciation. For property placed in service after Sept. 10, 2001, Kentucky conforms to the depreciation deduction under I.R.C. § 168 as was in effect on Dec. 31, 2001. Ky. Rev. Stat. Ann. § 141.0101(16)(a)as amended by 2019 Ky. H.B. 354effective for taxable years beginning on or after Jan. 1, 2019; CITN KY 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Louisiana

Corporate: Louisiana conforms to the federal treatment of bonus depreciation. La. Rev. Stat. Ann. § 47:65La. Rev. Stat. Ann. § 47:287.65Louisiana Revenue Information Bulletin 08-008La. Rev. Stat. Ann. § 47:287.701(A)CITN LA 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Maine

Corporate: Maine does not conform to the federal treatment of bonus depreciation. Maine requires an addback for the net increase in depreciation attributable to the deduction claimed under I.R.C. § 168(k). However, Maine offers a capital investment tax credit up to an amount equal to 9 percent of the amount claimed for the federal bonus depreciation deduction. Me. Rev. Stat. Ann. tit. 36, § 5200-A(1)(CC)Me. Rev. Stat. Ann. tit. 36, § 5219-NN; Me. Rev. Svcs., Guidance Document, Modifications Related to Bonus Depreciation & Section 179 ExpensingCITN ME 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Maryland

Corporate: Maryland does not conform to the federal treatment of bonus depreciation. Maryland requires an addition modification for bonus depreciation taken at the federal level in computing state adjusted gross income. Md. Code Ann., Tax-Gen. § 10-210.1(b)(1)Md. Code Ann., Tax-Gen. § 10-310Md. Code Ann., Tax-Gen. § 10-305(d)(2); Md. Comp. of the Treas., Maryland Administrative Release No. 38 (Sept. 2010); Md. Comp. of the Treas., Instructions Maryland Form 500DM: Decoupling Modification; CITN MD 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Massachusetts

Corporate: No, Massachusetts does not conform to the federal treatment of bonus depreciation. Mass. Gen. L. ch. 63, § 30(4)(iv)Massachusetts Technical Information Release TIR 02-11Massachusetts Technical Information Release TIR 03-25CITN MA 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

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Michigan

Corporate: Michigan does not conform to the federal treatment of bonus depreciation. However from Jan. 1, 2008 through Dec. 31, 2011, Michigan provided a MBT credit for bonus depreciation claimed on the federal return. Mich. Comp. Laws § 206.607(1)Mich. Comp. Laws § 208.1461CITN MI 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Minnesota

Corporate: Minnesota does not conform to the federal treatment of bonus depreciation and requires an addition modification to federal taxable income of 80 percent of bonus depreciation taken at the federal level in computing state taxable income. Minn. Stat. § 290.0133(11)Minn. Stat. § 290.0134(13)CITN MN 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Mississippi

Corporate: Mississippi disallows a deduction for bonus depreciation. Miss. Code Ann. § 27-7-17(1)(f)Miss. Regs. § 35.III.05.04.100 et seq.Mississippi Notice 80-19-001 (Jan. 28, 2019); Mississippi Form 83-100: Instructions to Corproate Income and Fanchise Tax ReturnCITN MS 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Missouri

Corporate: Partial conformity. Missouri conforms to the federal treatment of bonus depreciation, except that bonus depreciation is not allowed for property purchased on or after July 1, 2002 and prior to July 1, 2003. Mo. Rev. Stat. § 143.431(2)Mo. Rev. Stat. § 143.121(2)(3)CITN MO 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Montana

Corporate: Montana conforms to the federal treatment of bonus depreciation. Mont. Code Ann. § 15-31-113Mont. Code Ann. § 15-31-114Mont. Code Ann. § 15-31-114(1)(b)(i)CITN MT 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Nebraska

Corporate: Nebraska conforms to the federal treatment of bonus depreciation. However, Nebraska requires a percentage-based modification for any bonus depreciation deducted for property placed in service after Sept. 10, 2001 and prior to Dec. 31, 2005. Neb. Rev. Stat. § 77-2714Neb. Rev. Stat. § 77-2716(9)CITN NE 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Nevada

Corporate: Nevada does not impose a corporate income tax.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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New Hampshire

Corporate: No, New Hampshire does not conform to the federal treatment of bonus depreciation. New Hampshire decouples from I.R.C. § 168(k)N.H. Rev. Stat. Ann. § 77-A:3-bN.H. Rev. Stat. Ann. § 77-A:1(XX)(l)CITN NH 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

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New Jersey

Corporate: New Jersey does not conform to the federal treatment of bonus depreciation. New Jersey requires an addition to net income for any 30 percent or 50 percent depreciation amounts and federal depreciation calculations deducted in calculating federal taxable income for property placed in service on and after Jan. 1, 2002 for which federal 30 percent or 50 percent bonus depreciation was taken. N.J. Rev. Stat. § 54:10A-4(k)(12)N.J. Admin. Code tit. 18, § 7-5.2(a)(2)(iv)New Jersey Form CBT-100: Instructions for Corporation Business Tax ReturnCITN NJ 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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New Mexico

Corporate: New Mexico conforms to the federal treatment of bonus depreciation. N.M. Stat. Ann. § 7-2A-2(C)(H)effective until Jan. 1, 2020; N.M. Stat. Ann. § 7-2A-2(C)as amended by 2019 N.M. H.B. 6effective for taxable years beginning on or after Jan. 1, 2020; CITN NM 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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New York

Corporate: No, New York does not conform to the federal treatment of bonus depreciation. However, New York allows for bonus depreciation of qualified resurgence zone property and qualified New York Liberty Zone property. N.Y. Tax Law § 208(9)(b)(17)N.Y. Tax Law § 208(9)(q)CITN NY 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

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New York City

Corporate: New York City does not conform to the federal treatment of bonus depreciation, because New York City has enacted legislation decoupling from I.R.C. § 168(k). New York City requires an addback to federal taxable income for any bonus depreciation taken at the federal level. However, New York City allows for bonus depreciation of qualified resurgence zone property and qualified New York Liberty Zone property. N.Y.C. Admin. Code § 11-641(b)(13)CITN NYC 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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North Carolina

Corporate: North Carolina does not conform to the federal treatment of bonus depreciation and requires taxpayers to add back 85 percent of the bonus depreciation taken at the federal level, which then may be deducted on the state level over a five year period. N.C. Gen. Stat. § 105-130.5(a)(24)N.C. Gen. Stat. § 105-130.5BCITN NC 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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North Dakota

Corporate: North Dakota conforms to the federal treatment of bonus depreciation. N.D. Cent. Code § 57-38-01(5)(c)N.D. Cent. Code § 57-38-01(13)N.D. Cent. Code § 57-38-01.1N.D. Cent. Code § 57-38-01.3(1)CITN ND 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Ohio

Corporate: Ohio does not conform to the federal treatment of bonus depreciation. Ohio imposes a Commercial Activity Tax based on gross receipts in lieu of a corporate income or franchise tax. Ohio Rev. Code Ann. § 5751.02Ohio Rev. Code Ann. § 5751.01(F)CITN OH 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Oklahoma

Corporate: Oklahoma conforms to the federal treatment of bonus depreciation. However, for assets placed in service after Dec. 31, 2007 and before Jan. 1, 2010, Oklahoma requires an addition modification to the federal taxable income for any bonus depreciation taken at the federal level. Okla. Stat. Ann. tit. 68, § 2353(3)Okla. Stat. Ann. tit. 68, § 2353(10)Okla. Stat. Ann. tit. 68, § 2358.6CITN OK 5.3.1.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Oregon

Corporate: Oregon conforms to the federal treatment of bonus depreciation. Note for tax years 2009 and 2010 Oregon did not allow bonus depreciation. Or. Rev. Stat. § 317.301(2)Or. Rev. Stat. § 317.010(8)(9)CITN OR 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. Oregon has a static conformity date of Dec. 31, 2018, but has a rolling reconnect for provisions related to taxable income. I.R.C. § 168(k).

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Pennsylvania

Corporate: Pennsylvania does not conform to the federal treatment of bonus depreciation and requires companies calculate depreciation under the modified accelerated cost recovery system. 72 Pa. Stat. § 7401(3)(1)(r)(2)as amended by 2018 Pa. S.B. 1056effective for property placed in service after Sept. 27, 2017; 72 Pa. Stat. § 7401(3)(1)(q)as repealed by 2018 Pa. S.B. 1056effective June 28, 2018, applicable for tax years beginning on or after Jan. 1, 2017 and to property placed into service after Sept. 27, 2017; Pennsylvania Corporate Tax Bulletin No. CT 2018-03 (July 6, 2018); Pennsylvania Tax Bulletin: Tax Cuts and Jobs Act 2017 – What does it mean for Pennsylvania Taxpayers?CITN PA 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

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Rhode Island

Corporate: Rhode Island does not conform to the federal treatment of bonus depreciation and requires an addition modification for bonus depreciation taken at federal level. R.I. Gen. Laws § 44-61-1CITN RI 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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South Carolina

Corporate: South Carolina does not conform to the federal treatment of bonus depreciation. South Carolina specifically does not adopt I.R.C. § 168(k)S.C. Code Ann. § 12-6-50(4)CITN SC 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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South Dakota

Corporate: South Dakota does not impose a corporate income tax.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Tennessee

Corporate: Tennessee does not conform to the federal treatment of bonus depreciation. Tennessee requires taxpayers to add back bonus depreciation taken at federal level in computing Tennessee taxable income. Tenn. Code Ann. § 67-4-2006(b)(1)(H)CITN TN 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Texas

Corporate: No, Texas does not conform to the federal treatment of bonus depreciation. Current federal bonus depreciation rules are not part of the Internal Revenue Code in effect on Jan. 1, 2007. Tex. Tax Code Ann. § 171.0001(9)Tex. Tax Code Ann. § 171.1012(c)(6)Tex. Tax Code Ann. § 171.1012(h)CITN TX 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Utah

Corporate: Utah conforms to the federal treatment of bonus depreciation, including amendments made by the 2017 tax act. Utah Code Ann. § 59-7-101(31)as renumbered by 2019 Utah S.B. 28, and 2019 Utah H.B. 268effectivefor taxable years beginning on or after Jan. 1, 2019; Utah Admin. Code § R865-6F-14(2)CITN UT 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Vermont

Corporate: Vermont does not conform to the federal treatment of bonus depreciation. Vermont specifically does not adopt I.R.C. § 168(k)Vt. Stat. Ann. tit. 32, § 5811(18)CITN VT 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Virginia

Corporate: Virginia does not conform to the federal treatment of bonus depreciation. Va. Code Ann. § 58.1-301(B)(1)as amended by 2019 Va. H.B. 2529effectiveFeb. 15, 2019 and applicable to tax years beginning on or after Jan. 1, 2018; Virginia Tax Bulletin VTB 19-1 (Feb. 15, 2019) (explains Virginia’s advancement of the conformity date from Feb. 9, 2018 to Dec. 31, 2018); CITN VA 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. For tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, the act amends I.R.C. § 165 to limit the personal casualty loss itemized deduction under 165(h) to property losses incurred as a result of a federally-declared disaster, and change the definition of losses from wagering transactions under 165(d) to include any otherwise allowable deduction incurred in carrying on wagering transactions. I.R.C. § 165.

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Washington

Corporate: Washington does not impose a corporate income tax.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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West Virginia

Corporate: West Virginia conforms to the federal treatment of bonus depreciation. W.Va. Code § 11-24-2W.Va. Code § 11-24-3(a)W.Va. Code § 11-24-3aW. Va. Code § 11-24-6CITN WV 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Wisconsin

Corporate: Wisconsin does not conform to the federal treatment of bonus depreciation and specifically decouples from amendments to I.R.C. § 168(k) made by Pub. L. 115-97Wis. Stat. § 71.22(4)(L)as amended by 2018 Wis. A.B. 259effective April 5, 2018; Wis. Stat. § 71.26(3)(y)Wis. Stat. § 71.01(7r)(a)Wis. Stat. § 71.98(3)Wisconsin Adoption of IRC Provisions in the Federal Tax Cuts and Jobs Act (April 27, 2018); CITN WI 5.3.1.2.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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Wyoming

Corporate: Wyoming does not impose a corporate income tax.

Editors’ Note: Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

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