State Conformity with Federal Bonus Depreciation Rules

Our Bloomberg Tax & Accounting 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:

One


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.

Two


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.

Three


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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State conformity with bonus depreciation rules

Bonus Depreciation (after 2007 and before 2020)

Current Year Computation of Taxable Income § 168(k)

State

Alabama

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

REPORT

Survey of State Tax Departments

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Three Ways to Detangle State Conformity

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Alabama 5.3.2.1

I.R.C. § 168(k): Alabama Conformity

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State

Alaska

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

REPORT

Survey of State Tax Departments

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Alaska 5.3.2.1

I.R.C. § 168(k): Alaska Conformity

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State

Arizona

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

REPORT

Survey of State Tax Departments

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Arizona 5.3.2.1

I.R.C. § 168(k): Arizona Conformity

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State

Arkansas

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. 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: 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

ARTICLE

Three Ways to Detangle State Conformity

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Arkansas 5.3.2.1

I.R.C. § 168(k): Arkansas Conformity

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State

California

Conformity Status

Does not conform

Description

Corporate: California disallows a deduction for bonus depreciation. Cal. Rev. & Tax. Code § 24349California Tax Publication FTB 1001CITN 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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Three Ways to Detangle State Conformity

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California Requires C-Corporations to Follow Federal Asset Depreciation Range (ADR) System Provisions

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Corporate Income Tax Navigator, at California 5.3.2.1

I.R.C. § 168(k): California Conformity

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State

Colorado

Conformity Status

Conforms

Description

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

REPORT

Survey of State Tax Departments

ARTICLE

Three Ways to Detangle State Conformity

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Colorado 5.3.2.1

I.R.C. § 168(k): Colorado Conformity

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State

Connecticut

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. 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: 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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Survey of State Tax Departments

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Connecticut 5.3.2.1

I.R.C. § 168(k): Connecticut Conformity

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State

Delaware

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

REPORT

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Delaware 5.3.2.1

I.R.C. § 168(k): Delaware Conformity

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State

District of Columbia

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

REPORT

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Property Depreciation Methods: MACRS

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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

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State

Florida

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

REPORT

Survey of State Tax Departments

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Florida 5.3.2.1

I.R.C. § 168(k): Florida Conformity

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State

Georgia

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. 265effective 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

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State

Hawaii

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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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Hawaii 5.3.2.1

I.R.C. § 168(k): Hawaii Conformity

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State

Idaho

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 § 35.01.01.105.06Idaho 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: 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

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State

Illinois

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

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State

Indiana

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. § 6-3-1-33Indiana Tax Information Income Tax Bulletin 118; Indiana Dept. of Rev., Tax Chapter 2020 for the 2019 Filing YearCITN 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

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State

Iowa

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 2020CITN 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

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State

Kansas

Conformity Status

Conforms

Description

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

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State

Kentucky

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

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State

Louisiana

Conformity Status

Conforms

Description

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: 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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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Louisiana 5.3.2.1

I.R.C. § 168(k): Louisiana Conformity

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State

Maine

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 ExpensingCITN 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).

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Corporate Income Tax Navigator, at Maine 5.3.2.1

I.R.C. § 168(k): Maine Conformity

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State

Maryland

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. § 10-310Md. 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 ModificationCITN 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).

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Corporate Income Tax Navigator, at Maryland 5.3.2.1

I.R.C. § 168(k): Maryland Conformity

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State

Massachusetts

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 02-11Massachusetts Technical Information Release TIR 03-25CITN 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).

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Corporate Income Tax Navigator at Massachusetts 5.3.2.1

I.R.C. § 168(k): Massachusetts Conformity

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State

Michigan

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 § 208.1461CITN 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).

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Corporate Income Tax Navigator, at Michigan 5.3.2.1

I.R.C. § 168(k): Michigan Conformity

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State

Minnesota

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).

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Corporate Income Tax Navigator, at Minnesota 5.3.2.1

I.R.C. § 168(k): Minnesota Conformity

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State

Mississippi

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 ReturnCITN 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).

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Corporate Income Tax Navigator, at Mississippi 5.3.2.1

I.R.C. § 168(k): Mississippi Conformity

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State

Missouri

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).

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Corporate Income Tax Navigator, at Missouri 5.3.2.1

I.R.C. § 168(k): Missouri Conformity

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State

Montana

Conformity Status

Conforms

Description

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: 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).

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Corporate Income Tax Navigator, at Montana 5.3.2.1

I.R.C. § 168(k): Montana Conformity

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State

Nebraska

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. § 77-2714Neb. 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 RevenueCITN 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).

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Corporate Income Tax Navigator, at Nebraska 5.3.1.2.

I.R.C. § 168(k): Nebraska Conformity

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State

Nevada

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).

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State

New Hampshire

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-bN.H. Rev. Stat. Ann. § 77-A:1(XX)(o)as added by 2019 N.H. H.B. 4effective 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).

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Corporate Income Tax Navigator, at New Hampshire 5.3.1.2.

I.R.C. § 168(k): New Hampshire Conformity

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State

New Jersey

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 ReturnCITN 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).

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Corporate Income Tax Navigator, at New Jersey 5.3.1.2.

I.R.C. § 168(k): New Jersey Conformity

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State

New Mexico

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. 6effective 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).

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Corporate Income Tax Navigator, at New Mexico 5.3.1.2.

I.R.C. § 168(k): New Mexico Conformity

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State

New York

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).

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Corporate Income Tax Navigator, at New York 5.3.1.2.

I.R.C. § 168(k): New York Conformity

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State

New York City

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).

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I.R.C. § 168(k): New York City Conformity

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State

North Carolina

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. § 105-130.5BCITN 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).

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I.R.C. § 168(k): North Carolina Conformity

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State

North Dakota

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 § 57-38-01.1N.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).

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I.R.C. § 168(k): North Dakota Conformity

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State

Ohio

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. § 5751.02Ohio 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).

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I.R.C. § 168(k): Ohio Conformity

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State

Oklahoma

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, § 2358.6CITN 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).

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Corporate Income Tax Navigator, at Oklahoma 5.3.1.2.

I.R.C. § 168(k): Oklahoma Conformity

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State

Oregon

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).

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Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Oregon 5.3.1.2.

I.R.C. § 168(k): Oregon Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Pennsylvania

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

Three Ways to Detangle State Conformity

TOPIC

Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Pennsylvania 5.3.1.2.

I.R.C. § 168(k): Pennsylvania Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Rhode Island

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 § 44-61-1CITN 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

Property Depreciation Methods: MACRS

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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

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

South Carolina

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

Property Depreciation Methods: MACRS

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Subscriber-only resources

Corporate Income Tax Navigator, at South Carolina 5.3.1.2.

I.R.C. § 168(k): South Carolina Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

South Dakota

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

Property Depreciation Methods: MACRS

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Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Tennessee

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

Three Ways to Detangle State Conformity

TOPIC

Property Depreciation Methods: MACRS

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Subscriber-only resources

Corporate Income Tax Navigator, at Tennessee 5.3.1.2.

I.R.C. § 168(k): Tennessee Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Texas

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

Property Depreciation Methods: MACRS

Use Bloomberg Tax to easily compare state conformity to federal regulations with links to analysis by leading state tax practitioners.

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Subscriber-only resources

Corporate Income Tax Navigator, at Texas 5.3.1.2.

I.R.C. § 168(k): Texas Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Utah

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

Property Depreciation Methods: MACRS

Use Bloomberg Tax to easily compare state conformity to federal regulations with links to analysis by leading state tax practitioners.

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Subscriber-only resources

Corporate Income Tax Navigator, at Utah 5.3.1.2.

I.R.C. § 168(k): Utah Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Vermont

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) ConformityCITN 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

Property Depreciation Methods: MACRS

Use Bloomberg Tax to easily compare state conformity to federal regulations with links to analysis by leading state tax practitioners.

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Subscriber-only resources

Corporate Income Tax Navigator, at Vermont 5.3.1.2.

I.R.C. § 168(k): Vermont Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Virginia

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

Property Depreciation Methods: MACRS

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Corporate Income Tax Navigator, at Virginia 5.3.1.2.

I.R.C. § 168(k): Virginia Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Washington

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

Property Depreciation Methods: MACRS

Use Bloomberg Tax to easily compare state conformity to federal regulations with links to analysis by leading state tax practitioners.

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Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

West Virginia

Conformity Status

Conforms

Description

Corporate: West Virginia conforms to the federal treatment of bonus depreciation. W. Va. Code § 11-24-2W. Va. Code § 11-24-3(a)as amended by 2021 W. Va. H.B. 2359effective Feb. 18, 2021; W. Va. Code § 11-24-3aW. Va. Code § 11-24-6CITN 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

Property Depreciation Methods: MACRS

Use Bloomberg Tax to easily compare state conformity to federal regulations with links to analysis by leading state tax practitioners.

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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

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Wisconsin

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

Three Ways to Detangle State Conformity

TOPIC

Property Depreciation Methods: MACRS

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Subscriber-only resources

Corporate Income Tax Navigator, at Wisconsin 5.3.1.2.

I.R.C. § 168(k): Wisconsin Conformity

Your search ends here  |   Find more state depreciation tools with our Fixed Assets software   |   Explore other research solutions with our tax research software

State

Wyoming

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

Property Depreciation Methods: MACRS

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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

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 & Accounting 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.

WEBINAR

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.

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