Intuit HelpIntuitState Conformity for Special Depreciation Allowance and Section 179
by Intuit•1• Updated 2 days ago
This article will assist you to identify which states conform to federal Special Depreciation Allowance (SDA) also known as Bonus Depreciation as well as to changes in the federal Section 179 deduction. States that do not conform will have a state adjustment to account for those differences.
Select your state:
Alabama
State Follows Bonus Depreciation-TCJA of 2017 : Yes.
Alabama conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017 Yes.
Alabama conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Alabama is tied to the federal expensing rules under IRC Section 179 for Tax Year 2009 and future tax years.
Alaska
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
Arizona
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Arizona conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. For property placed in service in tax years beginning after December 31, 2016, Arizona allows an amount equal to the full amount, i.e., 100%, of the amount of bonus depreciation allowed under IRC § 168(k) , in effect as of 01/01/2017, to be subtracted from Arizona gross income.
State Follows IRC § 179-TCJA of 2017: Yes
Arizona conforms to the IRC in effect on January 1, 2019 and therefore adopts changed made by the TCJA.
Arkansas
State Follows Bonus Depreciation-TCJA of 2017 : No
Arkansas does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Arkansas adopts IRC §179 as in effect on January 1, 2022, and, therefore, conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
California
State Follows Bonus Depreciation-TCJA of 2017 : No
California does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after 09/27/2017, and before 01/01/2023.
State Follows IRC § 179-TCJA of 2017: No
California does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Colorado
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Colorado conforms to the IRC as currently amended and has not decoupled from the changes made by the Tax Cuts and Jobs Act (TCJA) to IRC § 168(k) that allows a 100% first-year deduction for the adjusted basis for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Colorado conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation
Connecticut
State Follows Bonus Depreciation-TCJA of 2017 : No
Connecticut does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
Applicable to taxable years beginning on or after January 1, 2017, for purposes of the personal income tax, for property placed in service after September 27, 2017, any additional allowance for bonus depreciation under IRC § 168(k) to the extent deductible in determining federal adjusted gross income must be added back.
However, 25% of the disallowed deduction may be deducted for each of the four succeeding tax years.
Note the Connecticut treatment of bonus depreciation for corporate and personal income tax purposes differs.
State Follows IRC § 179-TCJA of 2017: No
Connecticut does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
For income years commencing on or after January 1, 2018, 80% of any deduction claimed under IRC Section 179 for federal income tax purposes is disallowed.
To the extent that the deduction is disallowed, 25% of the disallowed portion of the deduction is allowed as a deduction in each of the four succeeding income years.
Delaware
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Delaware conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
Federal deduction is reflected in federal taxable income, Delaware's starting point for computing income and Delaware requires depletion adjustment but not depreciation adjustment.
State Follows IRC § 179-TCJA of 2017: Yes
Delaware conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Federal expensing deductions are reflected in federal taxable income, Delaware's starting point for computing income and Delaware does not require an expensing adjustment.
Florida
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
Georgia
State Follows Bonus Depreciation-TCJA of 2017 : No
Georgia does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
Georgia's IRC conformity specifically excludes IRC § 168(k).
State Follows IRC § 179-TCJA of 2017: Yes
Georgia conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Hawaii
State Follows Bonus Depreciation-TCJA of 2017 : No
Hawaii does not conform to the provision of the Tax Cuts and Jobs Act that provides a 100% first-year deduction for the adjusted basis that is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Hawaii does not conform to IRC § 168(k).
State Follows IRC § 179-TCJA of 2017: No
Hawaii does not conform to the provision in the Tax Cuts and Jobs Act that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation. The aggregate cost provided in IRC Section 179(b)(1) which may be taken into account for IRC Section 179(a) for any taxable year cannot exceed $25,000. The amount at which the reduction limitation provided in IRC Section 179(b)(2) begins must exceed $200,000 for any taxable year.
Iowa
State Follows Bonus Depreciation-TCJA of 2017 : No
Iowa does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
The increased expensing allowance under IRC § 179 , as amended by the Tax Cut and Jobs Act applies in computing net income for Iowa state tax purposes for tax years beginning on or after January 1, 2018, subject to the limitations for tax years prior to January 1, 2020. The Iowa Section 179 deduction limitation for tax year 2019 is $100,000 (less than the $1,020,000 federal limit) with a $400,000 phaseout for all taxpayers. Iowa will fully conform to the IRC § 179 deduction amounts beginning in tax year 2020.
Idaho
State Follows Bonus Depreciation-TCJA of 2017 : No
Idaho does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Idaho conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Illinois
State Follows Bonus Depreciation-TCJA of 2017 : No
For taxable years beginning after December 31, 2021, the state decouples from the 100% depreciation deduction. For tax years beginning before December 31, 2021, Illinois conformed to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis of qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Illinois does conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Indiana
State Follows Bonus Depreciation-TCJA of 2017 : No
Indiana does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: No
Indiana does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation. Effective retroactive to January 1, 2019, the amount that a taxpayer may expense under IRC § 179 is limited to the sum of $25,000 and the amount of any deduction elected under IRC § 179 for taxable years beginning after December 31, 2017, related to property that would have qualified for the tax-free exchange under IRC § 1031 in effect on January 1, 2017.
Kansas
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Kansas conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
Kansas conforms to IRC as currently amended.
State Follows IRC § 179-TCJA of 2017: Yes
Kansas conforms to the IRC as amended and therefore conforms to the provision of the Tax Cuts and Jobs Act that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Kentucky
State Follows Bonus Depreciation-TCJA of 2017 : No
Kentucky does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
For property placed in service after September 10, 2001, only the depreciation deduction allowed under IRC § 168 of the Internal Revenue Code in effect on December 31, 2001, exclusive of any amendments made subsequent to that date, are allowed.
State Follows IRC § 179-TCJA of 2017: No
Kentucky does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
For property placed in service after September 10, 2001, but prior to January 1, 2020, only the expense deduction allowed under IRC § 179 in effect on December 31, 2001 ($25,000 maximum), exclusive of any amendments made subsequent to that date, is allowed for Kentucky purposes.
For property placed in service on or after January 1, 2020, only the expense deduction allowed under IRC § 179 in effect on December 31, 2003 ($100,000 maximum), exclusive of any amendments made subsequent to that date, is allowed in Kentucky but the phase-out provisions in effect in 2003, limiting the qualifying investment in property, do not apply, and as a result, property placed in service that exceeds $400,000 may also be expensed for income tax purposes.
Louisiana
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Louisiana conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Louisiana conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Massachusetts
State Follows Bonus Depreciation-TCJA of 2017 : No
Massachusetts does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Massachusetts specifically decoupled from the federal bonus depreciation provisions under IRC § 168(k).
State Follows IRC § 179-TCJA of 2017: Yes
Massachusetts conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Massachusetts adopts the IRC as amended and in effect for the taxable year.
Maryland
State Follows Bonus Depreciation-TCJA of 2017 : No
Maryland does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: No
Maryland does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Maine
State Follows Bonus Depreciation-TCJA of 2017 : No
Maine does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis that is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
For property placed in service in 2015, an addition modification applies to all property placed in service in Maine. For property placed in service in Maine, the Maine capital investment credit may be claimed.
State Follows IRC § 179-TCJA of 2017: Yes
Maine conforms to the IRC as of a specified date and so conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Michigan
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Michigan conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after 9/27/2017, and before 1/1/2023 if taxpayer elects to use current IRC.
State Follows IRC § 179-TCJA of 2017: Yes
Michigan conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation, if the taxpayer elects to use the current IRC.
Minnesota
State Follows Bonus Depreciation-TCJA of 2017 : No
Minnesota does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Taxpayers must add back 80% of the federal depreciation bonus to their Minnesota return in the first year and then 20% of the addback amount can be subtracted in each of the next 5 years.
State Follows IRC § 179-TCJA of 2017: Yes
Minnesota fully conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation certain property acquired in a like-kind exchange under IRC § 1031 generally completed after December 31, 2017 and full conformity for all Section 179 expensing beginning in tax year 2020.
For prior taxable years, taxpayers must add back to federal taxable income 80% of the amount by which the deduction allowed by current Sec. 179 exceeds the deduction allowable under Sec. 179 as amended through 12/31/2003. In each of the five years after an add back is made, the taxpayer is allowed to subtract 20% of the total amount.
Missouri
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Missouri conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
Missouri adopts the Internal Revenue Code of 1986 as amended and in effect for the taxable year.
State Follows IRC § 179-TCJA of 2017: Yes
Missouri conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation. Missouri adopts the IRC as amended for the taxable year
Mississippi
State Follows Bonus Depreciation-TCJA of 2017 : Partial
Mississippi partially conforms to the provision of the Tax Cuts and Jobs Act that provides a 100% first-year deduction for the adjusted basis that is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Generally, Mississippi allows for a "reasonable" allowance for depreciation, and Mississippi regulations provide that bonus depreciation is not considered "reasonable." However, effective July 1, 2021, Mississippi expressly provides that, for new or used aircraft, equipment, engines, or other parts and tools used for aviation, the allowance for bonus depreciation conforms to federal bonus depreciation rates, and the "reasonable allowance" for depreciation is 100%.
For the purpose of computing income tax for tax years beginning after December 31, 2022, expenditures for business assets that are qualified property or qualified improvement property are eligible for 100% bonus depreciation and may be deducted as an expense incurred by the taxpayer during the tax year during which the property is placed in service, notwithstanding any changes to federal law related to cost recovery beginning on January 1, 2023, or on any other date.
State Follows IRC § 179-TCJA of 2017: Yes
Mississippi conforms to the provision of the Tax Cuts and Jobs Act that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation. Mississippi follows IRC § 179 expensing rules.
Montana
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Montana follows federal law.
State Follows IRC § 179-TCJA of 2017: Yes
Montana follows federal law and so conforms to the conforms to the provisions of the Tax Cuts and Jobs Act that increase the maximum amount a taxpayer may expense under IRC Sec. 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Nebraska
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Nebraska conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Nebraska conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
North Carolina
State Follows Bonus Depreciation-TCJA of 2017 : No
North Carolina does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Adjustments must be made.
State Follows IRC § 179-TCJA of 2017: No
North Carolina does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Adjustments must be made.
North Dakota
State Follows Bonus Depreciation-TCJA of 2017 : Yes
North Dakota follows federal law, and so conforms to the provision of the Tax Cuts and Jobs Act that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023 (after September 27, 2017, and before January 1, 2024, for certain property with longer production periods).
North Dakota also conforms to the technical correction to the TCJA contained in the CARES Act.
State Follows IRC § 179-TCJA of 2017: Yes
North Dakota conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
New Hampshire
State Follows Bonus Depreciation-TCJA of 2017 : N/A
New Hampshire taxes only interest, dividends and gambling winnings. No deductions are allowed.
State Follows IRC § 179-TCJA of 2017: N/A
New Jersey
State Follows Bonus Depreciation-TCJA of 2017 : No
New Jersey is tied to federal depreciation rules that were in effect on December 31, 2001. Thus, New Jersey does not conform to the provision of the Tax Cuts and Jobs Act of 2017.
State Follows IRC § 179-TCJA of 2017: No
New Jersey does not conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
New Jersey conforms to the IRC as it was in effect on December 31, 2002 and does not conform to the enhanced expenses set forth in the Tax Cuts and Jobs Act of 2017.
New Mexico
State Follows Bonus Depreciation-TCJA of 2017 : Yes
New Mexico conforms conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
New Mexico conforms conform to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
New York
State Follows Bonus Depreciation-TCJA of 2017 : No
New York does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
New York conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
However, New York disallows the amount of any deduction claimed pursuant to IRC § 179 for a sport utility vehicle (SUV) which is not a passenger automobile as defined in IRC § 280F(d)(5).
Nevada
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
Ohio
State Follows Bonus Depreciation-TCJA of 2017 : No
Ohio conforms to the IRC as of a specified date (see ¶55,505 ), and so it has adopted the changes made by the Tax Cuts and Jobs Act. However, it has decoupled from the changes made by the TCJA to IRC § 168(k) that allows a 100% first-year deduction for the adjusted basis for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: No
Add back five-sixths of the excess of the IRC section 179 amount allowed over the amount which would have been allowed based upon IRC section 179 in effect on December 31, 2002; deduct 1/5 of the qualifying section 179 amounts added back on a previous year's tax report.
Oklahoma
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Oklahoma conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. For taxable years beginning after December 31, 2021, Oklahoma permanently provides taxpayers the option to immediately and fully expense certain business assets eligible for 100% bonus depreciation, deductible as an incurred expense during the taxable year in which the property is placed in service.
State Follows IRC § 179-TCJA of 2017: N/A
Oregon
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Oregon conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Oregon conforms to the provision of the Tax Cuts and Jobs Act that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Pennsylvania
State Follows Bonus Depreciation-TCJA of 2017 : No
Pennsylvania does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Nor does Pennsylvania follow the technical correction for qualified improvement property for property placed in service after Dec. 31, 2017 enacted under the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT).
State Follows IRC § 179-TCJA of 2017: No
Effective January 1, 2023, Pennsylvania conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
For tax years 2003 through 2022, for personal income tax purposes, Pennsylvania maintained the $25,000 pre-2003 expense election limit with a phase out of the deduction property with an aggregate cost exceeding $200,000.
Rhode Island
State Follows Bonus Depreciation-TCJA of 2017 : No
Rhode Island does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Rhode Island conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
South Carolina
State Follows Bonus Depreciation-TCJA of 2017 : No
South Carolina does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis that is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
South Carolina does not allow bonus depreciation. Addition or subtraction is required for the difference in depreciation expense claimed for federal purposes and the amount allowed for state purposes.
State Follows IRC § 179-TCJA of 2017: Yes
South Carolina conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
South Dakota
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
Tennessee
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
Texas
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
Utah
State Follows Bonus Depreciation-TCJA of 2017 : Yes
Utah conforms to the Tax Cuts and Jobs Act of 2017 provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: Yes
Utah conforms to the federal code with a floating conformity date.
Virginia
State Follows Bonus Depreciation-TCJA of 2017 : No
Virginia does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
Virginia disallows any bonus depreciation for certain assets under IRC § 168(k).
State Follows IRC § 179-TCJA of 2017: Yes
Virginia conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation
Vermont
State Follows Bonus Depreciation-TCJA of 2017 : No
Vermont does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
Vermont has decoupled from the federal bonus depreciation provision.
State Follows IRC § 179-TCJA of 2017: Yes
Vermont conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
Vermont conforms to the federal code as amended through a specific date, so it adopts the changes from the Tax Cuts and Jobs Act.
Washington
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
Wisconsin
State Follows Bonus Depreciation-TCJA of 2017 : No
Wisconsin does not conform to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.
State Follows IRC § 179-TCJA of 2017: No
Wisconsin does not conform to the Tax Cuts and Jobs Act of 2017 provision that increases the maximum amount a taxpayer may expense under IRC Section 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
West Virginia
State Follows Bonus Depreciation-TCJA of 2017 : Yes
West Virginia conforms to the Tax Cuts and Jobs Act provision that provides a 100% first-year deduction for the adjusted basis is allowed for qualified property acquired and placed in service after 09/27/2017, and before 01/01/2023. The state conforms to all amendments made to the IRC in 2018.
State Follows IRC § 179-TCJA of 2017: Yes
West Virginia conforms to the Tax Cuts and Jobs Act provision that increases the maximum amount a taxpayer may expense under IRC § 179 to $1 million, increases the phase-out threshold amount to $2.5 million, and provides for indexing for inflation.
The state adopts all amendments made to the IRC in 2019.
Wyoming
State Follows Bonus Depreciation-TCJA of 2017 : N/A
State Follows IRC § 179-TCJA of 2017: N/A
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