Yes NJ allows up to $25000 deduction.  If you take more than $25000 on federal you have to add back the excess.  However, on page 16 the line reads if your federal was more than $25000  insert $25000 here and if not more than $25000 leave blank.  Which means if you only had $18000 of section 179 they aren't including it.  (But should since they'd allow $25000 it if it was over $25000) Catch my drift?