Reference

State Bonus Depreciation Conformity

Not every state follows federal bonus depreciation rules. This table shows which states conform, which require modifications, and which have no state income tax.

Important: State conformity rules change frequently. This table reflects general conformity status but may not reflect the most recent legislative updates in your state. Always verify with your CPA before filing.

StateStatusNotes
Alabama(AL)Full ConformityConforms to federal bonus depreciation provisions.
Alaska(AK)No Income TaxNo state income tax. Federal savings apply in full.
Arizona(AZ)PartialConforms to federal depreciation rules with modifications. Requires addback of bonus depreciation with ratable recovery over 5 years.
Arkansas(AR)Full ConformityFollows federal bonus depreciation provisions.
California(CA)No ConformityDoes not conform to federal bonus depreciation. Uses pre-TCJA depreciation rules. No bonus depreciation allowed for state purposes.
Colorado(CO)Full ConformityConforms to federal bonus depreciation as Colorado uses federal taxable income as a starting point.
Connecticut(CT)No ConformityDoes not allow bonus depreciation for state purposes. Requires addback of federal bonus depreciation.
Delaware(DE)Full ConformityFollows federal bonus depreciation provisions.
Florida(FL)No Income TaxNo individual state income tax. Federal savings apply in full. Corporate tax does exist — conforms for corporate purposes.
Georgia(GA)PartialAllows bonus depreciation but may require addback and recovery over multiple years depending on conformity date.
Hawaii(HI)No ConformityDoes not conform to federal bonus depreciation. Uses its own depreciation schedule.
Idaho(ID)Full ConformityConforms to federal bonus depreciation through rolling conformity.
Illinois(IL)PartialRequires addback of bonus depreciation with ratable recovery over a multi-year period.
Indiana(IN)PartialRequires addback of federal bonus depreciation with recovery over the applicable federal recovery period.
Iowa(IA)PartialPartial conformity — Iowa has been moving toward full conformity but may require modifications.
Kansas(KS)Full ConformityConforms to federal bonus depreciation provisions.
Kentucky(KY)Full ConformityFollows federal depreciation rules including bonus depreciation.
Louisiana(LA)Full ConformityConforms to federal bonus depreciation provisions.
Maine(ME)Full ConformityFollows federal depreciation provisions.
Maryland(MD)No ConformityDoes not conform to federal bonus depreciation. Requires addback with depreciation using pre-bonus rules.
Massachusetts(MA)No ConformityDoes not allow bonus depreciation for state purposes.
Michigan(MI)Full ConformityConforms to federal depreciation rules including bonus depreciation.
Minnesota(MN)PartialRequires 80% addback of bonus depreciation with recovery over 5 years.
Mississippi(MS)Full ConformityFollows federal bonus depreciation provisions.
Missouri(MO)Full ConformityConforms to federal bonus depreciation.
Montana(MT)Full ConformityFollows federal depreciation provisions.
Nebraska(NE)Full ConformityConforms to federal bonus depreciation.
Nevada(NV)No Income TaxNo state income tax. Federal savings apply in full.
New Hampshire(NH)No Income TaxNo tax on earned income (interest/dividends tax repealed). Federal savings apply for rental income.
New Jersey(NJ)No ConformityDoes not conform to federal bonus depreciation. Requires separate depreciation calculations for state.
New Mexico(NM)Full ConformityConforms to federal depreciation provisions.
New York(NY)No ConformityDoes not allow bonus depreciation for state purposes. Requires addback of federal bonus depreciation.
North Carolina(NC)PartialRequires addback of bonus depreciation with recovery over applicable federal life.
North Dakota(ND)Full ConformityConforms to federal bonus depreciation.
Ohio(OH)PartialOhio uses commercial activity tax (CAT) for businesses, not traditional income tax. Depreciation treatment varies.
Oklahoma(OK)Full ConformityFollows federal bonus depreciation provisions.
Oregon(OR)Full ConformityConforms to federal depreciation including bonus depreciation.
Pennsylvania(PA)No ConformityDoes not allow bonus depreciation for personal income tax. Uses its own depreciation method.
Rhode Island(RI)Full ConformityFollows federal depreciation provisions.
South Carolina(SC)Full ConformityConforms to federal bonus depreciation provisions.
South Dakota(SD)No Income TaxNo state income tax. Federal savings apply in full.
Tennessee(TN)No Income TaxNo state income tax on earned/rental income. Federal savings apply in full.
Texas(TX)No Income TaxNo state income tax. Federal savings apply in full. Franchise tax exists for businesses.
Utah(UT)Full ConformityConforms to federal depreciation provisions.
Vermont(VT)Full ConformityFollows federal depreciation rules.
Virginia(VA)PartialVirginia's conformity date may lag behind federal changes. Check current conformity date with your CPA.
Washington(WA)No Income TaxNo state income tax. Federal savings apply in full.
West Virginia(WV)Full ConformityConforms to federal bonus depreciation.
Wisconsin(WI)PartialRequires addback of bonus depreciation with ratable recovery over 5 years.
Wyoming(WY)No Income TaxNo state income tax. Federal savings apply in full.
District of Columbia(DC)PartialD.C. has its own conformity rules. Check current status with your CPA.

Disclaimer: State tax conformity rules are subject to change. This reference is provided for informational purposes only and does not constitute tax advice. The conformity status shown reflects general state-level positions and may not account for recent legislative changes, specific property types, or entity-level variations. Always consult a qualified CPA or tax attorney in your state for current guidance.

Your federal savings apply regardless of state conformity.

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