State Conformity with Federal Bonus Depreciation Rules
Our Bloomberg Tax resources provide insight on how each state conforms to the federal treatment of bonus depreciation.
What qualifies for bonus depreciation?
Bonus depreciation allows taxpayers to deduct a specified percentage (30, 50, or 100%) of depreciation in the year the qualifying property is placed in service. Qualified property is defined as property that meets three requirements:
It is MACRS property with a recovery period of 20 years or less (including qualified improvement property), depreciable computer software, water utility property, qualified film production, qualified television production, qualified live theatrical production, or an IRC §743(b) basis adjustment in qualified property.
Either its original use begins with the taxpayer, or it was not used by the taxpayer or a predecessor in the five years before the taxpayer’s current placed-in-service year and it meets certain other used property acquisition requirements.
It is placed in service before 2027 (or before 2028 for certain longer production period property that is acquired before 2027, or acquired pursuant to a written binding contract that became binding before 2027).
Calculating state depreciation has long been a source of frustration and stress for tax accountants. Learn three ways you can navigate the tangled web of state conformity.
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IRC State Conformity Chart Builder
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State conformity with federal bonus depreciation rules lookup tool
Download: Comparison chart of state conformity with federal bonus depreciation rules.
Download the full list of state charts to easily compare how each state (plus D.C. and New York City) conforms to the federal treatment of bonus depreciation.
State conformity with bonus depreciation rules
Bonus Depreciation (after 2007 and before 2020)
Current Year Computation of Taxable Income § 168(k)
Alabama
State Website
Conformity Status
Partial conformity
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Alabama Conformity Resources
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Corporate Income Tax Navigator, at Alabama 5.3.2.1
I.R.C. § 168(k): Alabama Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Alaska
State Website
Conformity Status
Partial conformity
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Alaska Conformity Resources
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Corporate Income Tax Navigator, at Alaska 5.3.2.1
I.R.C. § 168(k): Alaska Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Arizona
State Website
Conformity Status
Does not conform
Description
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); Ariz. Rev. Stat. Ann. § 43-1122(20); Arizona Dept. of Rev., Income Tax Notice for Corporate Taxpayers (June 4, 2019); CITN AZ 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Arizona Conformity Resources
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Corporate Income Tax Navigator, at Arizona 5.3.2.1
I.R.C. § 168(k): Arizona Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Arkansas
State Website
Conformity Status
Does not conform
Description
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. 1953, effective for taxable years beginning on or after Jan. 1, 2019; Arkansas Schedule 1100REC: Corporation Income Tax Reconciliation Schedule; CITN AR 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Arkansas Conformity Resources
REPORT
Survey of State Tax Departments
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Corporate Income Tax Navigator, at Arkansas 5.3.2.1
I.R.C. § 168(k): Arkansas Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
California
State Website
Conformity Status
Does not conform
Description
Corporate: California disallows a deduction for bonus depreciation. Cal. Rev. & Tax. Code § 24349; California Tax Publication FTB 1001; CITN CA 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
California Conformity Resources
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Survey of State Tax Departments
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Corporate Income Tax Navigator, at California 5.3.2.1
I.R.C. § 168(k): California Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Colorado
State Website
Conformity Status
Conforms
Description
Corporate: Colorado conforms to the federal treatment of bonus depreciation. Colo. Rev. Stat. § 39-22-304; CITN CO 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Colorado Conformity Resources
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Corporate Income Tax Navigator, at Colorado 5.3.2.1
I.R.C. § 168(k): Colorado Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Connecticut
State Website
Conformity Status
Does not conform
Description
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% 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. 11, effective 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Connecticut Conformity Resources
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Corporate Income Tax Navigator, at Connecticut 5.3.2.1
I.R.C. § 168(k): Connecticut Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Delaware
State Website
Conformity Status
Conforms
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Delaware Conformity Resources
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Corporate Income Tax Navigator, at Delaware 5.3.2.1
I.R.C. § 168(k): Delaware Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
District of Columbia
State Website
Conformity Status
Does not conform
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
District of Columbia Conformity Resources
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Corporate Income Tax Navigator, at District of Columbia 5.3.2.1
I.R.C. § 168(k): District of Columbia Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Florida
State Website
Conformity Status
Does not conform
Description
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); Florida Tax Information Publication 20C01-01 (Sept. 24, 2020); Florida Tax Information Publication 19C01-02 (July 31, 2019); CITN FL 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Florida Conformity Resources
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Corporate Income Tax Navigator, at Florida 5.3.2.1
I.R.C. § 168(k): Florida Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Georgia
State Website
Conformity Status
Does not conform
Description
Corporate: Georgia disallows a deduction for bonus depreciation. Ga. Code Ann. § 48-1-2(14), as amended by 2021 Ga. H.B. 265, effective for taxable years beginning on or after Jan. 1, 2020; Georgia Dept. of Rev., Income Tax Federal Tax Changes (last updated May 6, 2021); CITN GA 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Georgia Conformity Resources
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Corporate Income Tax Navigator, at Georgia 5.3.2.1
I.R.C. § 168(k): Georgia Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Hawaii
State Website
Conformity Status
Does not conform
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Hawaii Conformity Resources
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Corporate Income Tax Navigator, at Hawaii 5.3.2.1
I.R.C. § 168(k): Hawaii Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Idaho
State Website
Conformity Status
Does not conform
Description
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 § 35.01.01.105.06; Idaho 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Idaho Conformity Resources
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Corporate Income Tax Navigator, at Idaho 5.3.2.1
I.R.C. § 168(k): Idaho Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Illinois
State Website
Conformity Status
Partial conformity
Description
Corporate: Illinois allows a deduction for 100% bonus depreciation under I.R.C. § 168(k), and disallows a deduction for 40% bonus depreciation under I.R.C. § 168(k)(8) for qualified property acquired before Sept. 27, 2017, and placed in service in 2018. 35 ILCS 5/203(b)(2)(E-10); 35 ILCS 5/203(b)(2)(U); 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Illinois Conformity Resources
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Corporate Income Tax Navigator, at Illinois 5.3.2.1
I.R.C. § 168(k): Illinois Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Indiana
State Website
Conformity Status
Does not conform
Description
Corporate: Indiana disallows a deduction for bonus depreciation. Ind. Code Ann. § 6-3-1-3.5(b)(5); Ind. Code Ann. § 6-3-1-33; Indiana Tax Information Income Tax Bulletin 118; Indiana Dept. of Rev., Tax Chapter 2020 for the 2019 Filing Year; CITN IN 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Indiana Conformity Resources
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Corporate Income Tax Navigator, at Indiana 5.3.2.1
I.R.C. § 168(k): Indiana Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Iowa
State Website
Conformity Status
Does not conform
Description
Corporate: Iowa does not conform to bonus depreciation and requires an addition modification for any bonus depreciation taken at the federal level. Iowa Code Ann. § 422.35(19); Iowa Admin. Code r. 701–53.22; Iowa Dept. of Rev., Iowa Nonconformity: Coronavirus Aid, Relief, and Economic Security Act of 2020; CITN IA 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Iowa Conformity Resources
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Corporate Income Tax Navigator, at Iowa 5.3.2.1
I.R.C. § 168(k): Iowa Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Kansas
State Website
Conformity Status
Conforms
Description
Corporate: Kansas conforms to the federal treatment of bonus depreciation. Kan. Stat. Ann. § 79-32,138; CITN KS 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Kansas Conformity Resources
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Corporate Income Tax Navigator, at Kansas 5.3.2.1
I.R.C. § 168(k): Kansas Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Kentucky
State Website
Conformity Status
Does not conform
Description
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); CITN KY 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Kentucky Conformity Resources
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Corporate Income Tax Navigator, at Kentucky 5.3.2.1
I.R.C. § 168(k): Kentucky Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Louisiana
State Website
Conformity Status
Conforms
Description
Corporate: Louisiana conforms to the federal treatment of bonus depreciation. La. Rev. Stat. Ann. § 47:65; La. Rev. Stat. Ann. § 47:287.65; Louisiana Revenue Information Bulletin 08-008; La. Rev. Stat. Ann. § 47:287.701(A); CITN LA 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Louisiana Conformity Resources
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Three Ways to Detangle State Conformity
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Corporate Income Tax Navigator, at Louisiana 5.3.2.1
I.R.C. § 168(k): Louisiana Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Maine
State Website
Conformity Status
Does not conform
Description
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 in an amount equal to 9% of the amount claimed for the federal bonus depreciation deduction. Me. Rev. Stat. Ann. tit. 36, § 5200-A(1)(CC), (2)(FF); Me. Rev. Stat. Ann. tit. 36, § 5219-NN(1)(A); Maine Guidance Document: Modifications Related to Bonus Depreciation & Section 179 Expensing; CITN ME 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Maine Conformity Resources
REPORT
Survey of State Tax Departments
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Corporate Income Tax Navigator, at Maine 5.3.2.1
I.R.C. § 168(k): Maine Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Maryland
State Website
Conformity Status
Does not conform
Description
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. § 10-310; Md. 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Maryland Conformity Resources
REPORT
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Corporate Income Tax Navigator, at Maryland 5.3.2.1
I.R.C. § 168(k): Maryland Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Massachusetts
State Website
Conformity Status
Does not conform
Description
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 02-11; Massachusetts Technical Information Release TIR 03-25; CITN MA 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Massachusetts Conformity Resources
REPORT
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Corporate Income Tax Navigator at Massachusetts 5.3.2.1
I.R.C. § 168(k): Massachusetts Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Michigan
State Website
Conformity Status
Does not conform
Description
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 § 208.1461; CITN MI 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Michigan Conformity Resources
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Corporate Income Tax Navigator, at Michigan 5.3.2.1
I.R.C. § 168(k): Michigan Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Minnesota
State Website
Conformity Status
Does not conform
Description
Corporate: Minnesota does not conform to the federal treatment of bonus depreciation and requires an addition modification to federal taxable income of 80% 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Minnesota Conformity Resources
REPORT
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Corporate Income Tax Navigator, at Minnesota 5.3.2.1
I.R.C. § 168(k): Minnesota Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Mississippi
State Website
Conformity Status
Does not conform
Description
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 Corporate Income and Franchise Tax Return; CITN MS 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Mississippi Conformity Resources
REPORT
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Corporate Income Tax Navigator, at Mississippi 5.3.2.1
I.R.C. § 168(k): Mississippi Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Missouri
State Website
Conformity Status
Partial conformity
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Missouri Conformity Resources
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Corporate Income Tax Navigator, at Missouri 5.3.2.1
I.R.C. § 168(k): Missouri Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Montana
State Website
Conformity Status
Conforms
Description
Corporate: Montana conforms to the federal treatment of bonus depreciation. Mont. Code Ann. § 15-31-113; Mont. Code Ann. § 15-31-114; Mont. Code Ann. § 15-31-114(1)(b)(i); CITN MT 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Montana Conformity Resources
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Corporate Income Tax Navigator, at Montana 5.3.2.1
I.R.C. § 168(k): Montana Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Nebraska
State Website
Conformity Status
Conforms
Description
Corporate: Nebraska conforms to the federal treatment of bonus depreciation, including amendments made by the 2017 tax act and the CARES Act. Neb. Rev. Stat. § 77-2714; Neb. Rev. Stat. § 77-2716(9); Nebraska Dept. of Rev., Effects of the Coronavirus Aid, Relief, and Economic Security Act on the State of Nebraska’s Tax Revenue; CITN NE 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Nebraska Conformity Resources
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Corporate Income Tax Navigator, at Nebraska 5.3.1.2.
I.R.C. § 168(k): Nebraska Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Nevada
State Website
Conformity Status
Nevada does not impose a corporate income tax.
Description
Corporate: Nevada does not impose a corporate income tax.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Nevada Conformity Resources
REPORT
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[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
New Hampshire
State Website
Conformity Status
Does not conform
Description
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-b; N.H. Rev. Stat. Ann. § 77-A:1(XX)(o), as added by 2019 N.H. H.B. 4, effective for taxable years beginning on or after Jan. 1, 2020; CITN NH 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
New Hampshire Conformity Resources
REPORT
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Corporate Income Tax Navigator, at New Hampshire 5.3.1.2.
I.R.C. § 168(k): New Hampshire Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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New Jersey
State Website
Conformity Status
Does not conform
Description
Corporate: New Jersey does not conform to the federal bonus depreciation deduction. New Jersey requires an addition to net income for any bonus depreciation amounts. 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 Return; CITN NJ 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
New Jersey Conformity Resources
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Corporate Income Tax Navigator, at New Jersey 5.3.1.2.
I.R.C. § 168(k): New Jersey Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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New Mexico
State Website
Conformity Status
Conforms
Description
Corporate: New Mexico conforms to the federal treatment of bonus depreciation. N.M. Stat. Ann. § 7-2A-2(C), as amended by 2019 N.M. H.B. 6, effective for taxable years beginning on or after Jan. 1, 2020; CITN NM 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
New Mexico Conformity Resources
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Corporate Income Tax Navigator, at New Mexico 5.3.1.2.
I.R.C. § 168(k): New Mexico Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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New York
State Website
Conformity Status
Does not conform
Description
Corporate: 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
New York Conformity Resources
REPORT
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Corporate Income Tax Navigator, at New York 5.3.1.2.
I.R.C. § 168(k): New York Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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New York City
City Website
Conformity Status
Does not conform
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
New York City Conformity Resources
REPORT
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Corporate Income Tax Navigator, at New York City 5.3.1.2.
I.R.C. § 168(k): New York City Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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North Carolina
State Website
Conformity Status
Does not conform
Description
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. § 105-130.5B; CITN NC 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
North Carolina Conformity Resources
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Corporate Income Tax Navigator, at North Carolina 5.3.1.2.
I.R.C. § 168(k): North Carolina Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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North Dakota
State Website
Conformity Status
Conforms
Description
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 § 57-38-01.1; N.D. Cent. Code § 57-38-01.3(1); CITN ND 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
North Dakota Conformity Resources
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Corporate Income Tax Navigator, at North Dakota 5.3.1.2.
I.R.C. § 168(k): North Dakota Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Ohio
State Website
Conformity Status
Does not conform
Description
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. § 5751.02; Ohio Rev. Code Ann. § 5751.01(F); CITN OH 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Ohio Conformity Resources
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Corporate Income Tax Navigator, at Ohio 5.3.1.2.
I.R.C. § 168(k): Ohio Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Oklahoma
State Website
Conformity Status
Partial conformity
Description
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, § 2358.6; CITN OK 5.3.1.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Oklahoma Conformity Resources
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Corporate Income Tax Navigator, at Oklahoma 5.3.1.2.
I.R.C. § 168(k): Oklahoma Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
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Oregon
State Website
Conformity Status
Partial conformity
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Oregon Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Oregon 5.3.1.2.
I.R.C. § 168(k): Oregon Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Pennsylvania
State Website
Conformity Status
Does not conform
Description
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), (3)(1)(q); 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Pennsylvania Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
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TOPIC
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Corporate Income Tax Navigator, at Pennsylvania 5.3.1.2.
I.R.C. § 168(k): Pennsylvania Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Rhode Island
State Website
Conformity Status
Does not conform
Description
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 § 44-61-1; CITN RI 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Rhode Island Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Rhode Island 5.3.1.2.
I.R.C. § 168(k): Rhode Island Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
South Carolina
State Website
Conformity Status
Does not conform
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
South Carolina Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Corporate Income Tax Navigator, at South Carolina 5.3.1.2.
I.R.C. § 168(k): South Carolina Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
South Dakota
State Website
Conformity Status
South Dakota does not impose a corporate income tax.
Description
Corporate: South Dakota does not impose a corporate income tax.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
South Dakota Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Tennessee
State Website
Conformity Status
Does not conform
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Tennessee Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
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TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Tennessee 5.3.1.2.
I.R.C. § 168(k): Tennessee Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Texas
State Website
Conformity Status
Does not conform
Description
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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Texas Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Texas 5.3.1.2.
I.R.C. § 168(k): Texas Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Utah
State Website
Conformity Status
Conforms
Description
Corporate: Utah conforms to the federal treatment of bonus depreciation, including amendments made by the 2017 tax act. Utah Code Ann. § 59-7-101(22); Utah Admin. Code § R865-6F-14(2); CITN UT 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Utah Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Utah 5.3.1.2.
I.R.C. § 168(k): Utah Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Vermont
State Website
Conformity Status
Does not conform
Description
Corporate: Vermont disallows a deduction for bonus depreciation. Vt. Stat. Ann. tit. 32, § 5811(18); Vermont Dept. of Taxes, Tax Cuts and Jobs Act (TCJA) Conformity; CITN VT 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Vermont Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Vermont 5.3.1.2.
I.R.C. § 168(k): Vermont Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Virginia
State Website
Conformity Status
Does not conform
Description
Corporate: Virginia does not conform to the federal treatment of bonus depreciation. Va. Code Ann. § 58.1-301(B)(1); Virginia Tax Bulletin VTB 21-4 (March 15, 2021); CITN VA 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Virginia Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Virginia 5.3.1.2.
I.R.C. § 168(k): Virginia Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Washington
State Website
Conformity Status
Washington does not impose a corporate income tax.
Description
Corporate: Washington does not impose a corporate income tax.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Washington Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
Use Bloomberg Tax Research to easily compare state conformity to federal regulations with links to analysis by leading state tax practitioners.
Request a demo and see our products in action.
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
West Virginia
State Website
Conformity Status
Conforms
Description
Corporate: West Virginia conforms to the federal treatment of bonus depreciation. W. Va. Code § 11-24-2; W. Va. Code § 11-24-3(a), as amended by 2021 W. Va. H.B. 2359, effective Feb. 18, 2021; W. Va. Code § 11-24-3a; W. Va. Code § 11-24-6; CITN WV 5.3.1.2.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
West Virginia Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at West Virginia 5.3.1.2.
I.R.C. § 168(k): West Virginia Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Wisconsin
State Website
Conformity Status
Does not conform
Description
Corporate: Wisconsin does not conform to the federal treatment of bonus depreciation. 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: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Wisconsin Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
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TOPIC
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Subscriber-only resources
Corporate Income Tax Navigator, at Wisconsin 5.3.1.2.
I.R.C. § 168(k): Wisconsin Conformity
[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
Wyoming
State Website
Conformity Status
Wyoming does not impose a corporate income tax.
Description
Corporate: Wyoming does not impose a corporate income tax.
Editors’ Note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service after Sept. 27, 2017, and reduces the percentage that may be expensed after Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Wyoming Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
Use Bloomberg Tax Research to easily compare state conformity to federal regulations with links to analysis by leading state tax practitioners.
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[Download the full list of state charts to easily compare how they each conform to federal treatment of bonus depreciation.]
Your search ends here | Find more state depreciation tools with our Fixed Assets software | Explore other research solutions with our tax research software
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 our Fixed Assets state depreciation feature – your solution to handling complex calculations for nonconforming states that goes far beyond simple “no-bonus” calculations.
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State conformity resources
COMPARISON CHART
A complete state-by-state bonus depreciation conformity comparison chart
Our state tax experts compiled each state’s specific bonus depreciation rules and how they conform to federal tax code sanctions. Download the full comparison chart to understand each state’s conformity status, key differences with federal bonus depreciation rules, helpful resources, and expert analysis.
ARTICLE
Pennsylvania’s Complicated History with Bonus Depreciation
In the case of depreciation, it is often not as simple as determining whether the state follows IRC Section 168(k) bonus depreciation. Pennsylvania is one of the clear examples of a state taking advantage of this flexibility and the resulting headache for corporate taxpayers.
ARTICLE
California Requires Corporations to Follow Federal ADR System Provisions
Corporate taxpayers doing business in California often share the sentiment that tax compliance and planning in the state can be as cumbersome and complex as federal efforts. Tax depreciation is one such area where California state rules differ significantly from the federal rules.
ARTICLE
Depreciation Challenges for “Flip-Flop” Conformity States
Keeping up with tax law at the state level has always been challenging for corporate taxpayers, especially because states do not consistently conform to the Internal Revenue Code (IRC). States that have gone back and forth between conforming and not conforming with federal bonus depreciation (“flip-flop” states) present added complexity for taxpayers because of differing treatment across years.
ARTICLE
Tax Reform Muddies the Water on Bonus Depreciation
The Treasury and Internal Revenue Service (IRS), on Sept. 13, 2019, released final regulations under Internal Revenue Code section 168(k) regarding the new 100% bonus depreciation that allows businesses to fully expense qualified assets when placed in service. The final regulations provide anticipated clarity for the proposed regulations that were issued in August 2018.
WEBINAR
Asset Management Strategy Post-Tax Reform
The Tax Cuts & Jobs Act of 2017 (TCJA) was intended to spur economic growth in the U.S. in several ways, including expansion of immediate expensing for asset purchases. However, taking bonus depreciation may not always be the best option for businesses. Depending on the nature of your business, your profit/loss position, and your capitalization procedures, the optimum strategy for minimizing tax may vary. Join Bloomberg Tax to learn about various asset management strategies and how they may apply to your company.
SPECIAL REPORT
Understanding the 2017 Tax Cuts and Jobs Act Changes to Bonus Depreciation and First-Year Expensing
Our team explores all the nuances of the changes to §179 including insights on full expensing, used property, and first-year expensing, and bonus depreciation under §168(k). Find out what the changes could mean for certain industries, as well as ramifications for state taxes.
ARTICLE
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. Learn three ways to detangle state conformity.