Often states choose to modify or decouple from the generous federal rules. Two depreciation areas frequently subject to different rules by the states are:
For example, some states conform to the federal rules for expensing under Section 179. Others impose a lower limit than the federal amount, and some don’t allow it at all.
| State | Link | Phone | Section 179 | Bonus | Notes |
| Alabama | 800-322-4106 | Yes | Yes | ||
| Alaska | Anchorage: 907-269-6620 | Yes | Yes | ||
| Arizona | 602-255-3381 | Yes | No | ||
| Arkansas | 501-682-4775 | $1,220,000 | No | Arkansas has adopted the IRC Section 179 for tax years beginning on or after January 1, 2022. In 2024, the Arkansas Section 179 deduction limit is $1,220,000 and the dollar-for-dollar phase out begins at $3,050,000. | |
| California | 800-852-5711 | $25,000 | No | ||
| Colorado | 303-238-SERV(7378) | Yes | Yes | ||
| Connecticut | 800-382-9463 | Yes | No | You add back 80% of the Section 179 amount in the first year. You recover 25% of the disallowed amount each year for the next four years. In other words, you recover 20% of the Section 179 amount in each year over five years. | |
| Delaware | 302-577-8205 | Yes | Yes | ||
| District of | 202-727-4TAX(4829) | $25,000 | No | ||
| Florida | 850-448-6800 | Yes | No | You recover Bonus Depreciation for assets placed in service before January 1, 2027, over a total of seven years, including the year of addition. Tax rules don’t recognize the 15-year life for Qualified Improvement Property (QIP). The system calculates depreciation using the longer life without bonus depreciation. | |
| Georgia | 877-GADOR11 | Yes | No | Georgia conforms to the Federal Section 179 limit, including adjustments for inflation. It doesn’t recognize certain real property assets that qualify under Sections 179(d)(1)(B)(ii). | |
| Hawaii | Oahu: 800-222-3229 | $25,000 | No | ||
| Idaho | 800-972-7660 | Yes | No | ||
| Illinois | 800-732-8866 | Yes | No | Illinois conformed to the 100% Federal bonus/168k depreciation allowance from 9/28/20217 to 12/31/2022. Illinois typically conforms to the Federal bonus rate when it’s 100%. Refer to the instructions for Form IL-4562 for more information. | |
| Indiana | 317-232-0129 | $25,000 | No | Indiana caps the Section 179 allowance at $25,000 but follows a $2,500,000 Section 179 phase-out threshold. | |
| Iowa | 800-367-3388 | $1,040,000 | No | As of 2020, Iowa fully conforms to the Federal Section 179 limits, including adjustments for inflation. | |
| Kansas | 785-368-8222 | Yes | Yes | ||
| Kentucky | 502-564-8139 | $100,000 | No | ||
| Louisiana | 855-307-3893 | Yes | Yes | ||
| Maine | 207-626-8475 | $25,000 | No | ||
| Maryland | 800-MD-TAXES | $25,000 | No | ||
| Massachusetts | 800-392-6089 | Yes | No | ||
| Michigan | 517-636-6925 | Yes | No | ||
| Minnesota | 651-556-3075 | Yes | No | Starting with tax years after December 31, 2019, Minnesota follows the federal Section 179 limits. This includes carryover for property placed in service before January 1, 2020. It also applies when a partnership or S-corporation uses a fiscal year and a partner or shareholder files on a calendar year. Minnesota still allows subtractions for prior-year additions until the 5-year subtraction period ends. | |
| Mississippi | 601-923-7099 | Yes | Yes | Effective July 1, 2021, 100% Bonus Depreciation for aircraft and aviation equipment implemented. Starting January 1, 2022, you can take 100% bonus depreciation on Qualified Improvement Property. For tax years beginning January 1, 2023, and later, Mississippi has adopted a permanent 100% bonus depreciation deduction for all assets. | |
| Missouri | 573-751-4541 | Yes | Yes | ||
| Montana | 406-444-6900 | Yes | Yes | ||
| Nebraska | 800-742-7474 (Toll free in NE and IA) | Yes | Yes | ||
| Nevada | 866-962-3707 | No Corporate Income Tax | No Corporate Income Tax | ||
| New Hampshire | 603-230-5000 | $500,000 | No | Section 179 – For assets put in service after January 1, 2018 the allowable Section 179 deduction is $500,000. For assets put in service during 2017, the allowable section 179 deduction is $100,000. The Section 179 deduction limit was $25,000 through 12/31/2016. | |
| New Jersey | 609-292-6400 | $25,000 | No | ||
| New Mexico | 866-285-2996 | Yes | Yes | ||
| New York | 518-485-6027 | Yes | No | ||
| North Carolina | 877-252-3052 | $25,000 | Yes, Over six years | Add back 85% of the bonus depreciation you deducted on your federal return. You deduct the added bonus depreciation in five equal installments. Start with the tax return for the year after the addition. | |
| North Dakota | 701-328-1249 | Yes | Yes | ||
| Ohio | 888-405-4039 | No | No | Ohio replaced the Franchise Tax with a Corporate Activity Tax (CAT) in 2009. The CAT isn’t an income tax, so it doesn’t link to a federal income tax return. This includes Section 168(k) and Section 179 deductions. | |
| Oklahoma | 405-521-3160 | Yes | Yes | ||
| Oregon | 503-378-4988 In State: 800-356-4222 | Yes | Yes | ||
| Pennsylvania | 717-787-1064 888-PATAXES (728-2937) | Yes | No | ||
| Rhode Island | 401-574-8935 | Yes | No | ||
| South Carolina | 803-989-3153 | Yes | No | ||
| South Dakota | 800-TAX-9188 | No Corporate Income Tax | No Corporate Income Tax | ||
| Tennessee | 800-342-1003 | Yes | Yes |
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| Texas | 800-252-1381 | $25,000 | No | ||
| Utah | 800-662-4335 | Yes | Yes | ||
| Vermont | 802-828-5723 | Yes | No | ||
| Virginia | 804-367-8037 | Yes | No | ||
| Washington | 360-705-6705 | No Corporate Income Tax | No Corporate Income Tax | ||
| West Virginia | 800-982-8297 | Yes | Yes | ||
| Wisconsin | 608-266-2776 | Yes | No | ||
| Wyoming | 307-777-5200 | No Corporate Income Tax | No Corporate Income Tax |