{
  "_meta": {
    "version": "1.1",
    "verified_as_of": "2026-08-18",
    "coverage": "51 jurisdictions (50 states + DC)",
    "methodology": "Every field cited to a state Department of Revenue, state legislature, or state statute primary source. Post-OBBBA (P.L. 119-21, July 4 2025) verification. Rate data cross-referenced against Tax Foundation state rates table for 2026.",
    "verification_cadence_target": "quarterly",
    "license": "CC BY 4.0",
    "license_url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "DepreciMax (2026). US State Conformity to Federal §168(k) Bonus Depreciation Dataset. https://deprecimax.com/data/state-conformity.json",
    "field_definitions": {
      "conformity_status": "full = state automatically allows federal §168(k) with no state add-back; partial = state allows a portion (e.g., 15% NC, 20% MN); decoupled = state disallows §168(k) entirely and requires 100% add-back",
      "add_back_pct": "integer 0-100 representing the % of the federal §168(k) deduction that must be added back on the state return. 0 = full conformer, 100 = full decoupler, 15-85 = partial.",
      "primary_source_url": "Must be a state DOR, state legislature, or .gov/.us primary source",
      "obbba_note": "OBBBA (One Big Beautiful Bill Act, P.L. 119-21) restored 100% federal §168(k) permanently effective for property placed in service on or after January 19, 2025. State conformity to OBBBA varies materially — rolling-conformity states auto-adopt; static-conformity states require legislation."
    }
  },
  "states": [
    {
      "state": "Alabama",
      "state_code": "AL",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 5.0,
      "flat_tax_rate": null,
      "one_liner": "Alabama fully conforms to federal §168(k) via rolling IRC adoption — STR investors get 100% Year-1 federal deduction plus full Alabama deduction at up to 5%.",
      "statute_or_reg_citation": "Ala. Code §40-18-1.1 (rolling IRC conformity)",
      "primary_source_url": "https://revenue.alabama.gov/individual-corporate/income-tax-forms-instructions/",
      "notes_for_investors": "Alabama is a rolling-conformity state and automatically adopts §168(k) as amended by OBBBA. On a $150,000 §168(k) deduction, an Alabama STR investor at the 5% top rate gets an additional $7,500 in state tax savings on top of the federal deduction — no add-back required. No pending 2026 conformity legislation.",
      "last_regulatory_change": null
    },
    {
      "state": "Alaska",
      "state_code": "AK",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "Alaska has no state individual income tax, so §168(k) conformity is a non-issue for STR investors — federal deduction is the entire benefit.",
      "statute_or_reg_citation": "Alaska has no individual income tax (Alaska Const. Art. IX; last individual tax repealed 1980)",
      "primary_source_url": "https://tax.alaska.gov/programs/programs/index.aspx?60610",
      "notes_for_investors": "Individual STR investors owe no Alaska personal income tax, so the federal §168(k) deduction stands alone. On a $150,000 §168(k) deduction, federal savings at 37% = $55,500; no incremental state savings or add-back. Alaska's corporate net income tax does conform to federal §168(k) for C-corps only.",
      "last_regulatory_change": null
    },
    {
      "state": "Arizona",
      "state_code": "AZ",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 2.5,
      "flat_tax_rate": 2.5,
      "one_liner": "Arizona decouples from federal §168(k) — STR investors must add back the entire bonus depreciation on the state return, but Arizona's 2.5% flat tax makes the timing hit minimal.",
      "statute_or_reg_citation": "A.R.S. §43-1021 / §43-1022 (subtraction for depreciation computed without §168(k) election); ITP 16-2",
      "primary_source_url": "https://azdor.gov/legal/procedures/itp-16-2",
      "notes_for_investors": "Arizona requires taxpayers to add back federal depreciation under §167(a) and subtract depreciation computed as if the taxpayer had elected out of §168(k) under §168(k)(2)(D)(iii). Result: no bonus depreciation for Arizona. On a $150,000 federal §168(k) deduction, Arizona STR investors get $0 state benefit in Year 1 (vs. ~$3,750 if AZ conformed at 2.5%). The state's low 2.5% flat rate keeps the total timing hit under $4,000 — the smallest in any decoupled state.",
      "last_regulatory_change": null
    },
    {
      "state": "Arkansas",
      "state_code": "AR",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 3.9,
      "flat_tax_rate": null,
      "one_liner": "Arkansas has never adopted §168(k) bonus depreciation — STR investors must depreciate on the standard IRC §168(a)-(j) schedule for state purposes.",
      "statute_or_reg_citation": "Ark. Code Ann. §26-51-428 (adopts IRC §§167 and 168(a)-(j) as in effect January 1, 2019; explicitly excludes §168(k))",
      "primary_source_url": "https://www.dfa.arkansas.gov/wp-content/uploads/AR1100ADJ_Instructions_2025.pdf",
      "notes_for_investors": "Arkansas conforms to IRC §§167 and 168(a)-(j) as of January 1, 2019 and has never adopted §168(k). On a $150,000 federal bonus deduction, Arkansas STR investors owe additional state tax on the $150,000 addback, roughly $5,850 at the 3.9% top rate — recovered as depreciation over the property's normal MACRS life. No 2026 legislative change to conformity date.",
      "last_regulatory_change": null
    },
    {
      "state": "California",
      "state_code": "CA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 13.3,
      "flat_tax_rate": null,
      "one_liner": "California does not conform to federal §168(k) bonus depreciation — STR investors get the full federal deduction with a 100% California add-back; SB 711 (Oct 2025) moved conformity to IRC Jan 1 2025 but explicitly excluded OBBBA.",
      "statute_or_reg_citation": "R&TC §17024.5 (California specified-date conformity, IRC as of January 1, 2025 per SB 711); R&TC §17250 (state depreciation without §168(k) election)",
      "primary_source_url": "https://www.ftb.ca.gov/tax-pros/law/conformity.html",
      "notes_for_investors": "SB 711 (enacted October 1, 2025) advanced California's IRC conformity date from 1/1/2015 to 1/1/2025, but explicitly does not include OBBBA (P.L. 119-21). California continues to disallow §168(k) for both PIT and CT purposes. On a $150,000 federal bonus deduction, a California STR investor at the 13.3% top marginal rate misses ~$19,950 in Year-1 state tax savings (the largest miss in the country). The federal deduction is unaffected. Recover deductions over MACRS life on state return. FTB Publication 1001 documents the modification.",
      "last_regulatory_change": "2025-10-01: SB 711 signed; moves conformity date to IRC 1/1/2025 but §168(k) non-conformity retained."
    },
    {
      "state": "Colorado",
      "state_code": "CO",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.4,
      "flat_tax_rate": 4.4,
      "one_liner": "Colorado fully conforms to federal §168(k) via rolling IRC adoption — STR investors get 100% Year-1 federal deduction plus 4.4% Colorado deduction.",
      "statute_or_reg_citation": "C.R.S. §39-22-103 (rolling IRC conformity, based on 'internal revenue code' as defined by reference to the current federal law)",
      "primary_source_url": "https://tax.colorado.gov/individual-income-tax-guidance-publications",
      "notes_for_investors": "Colorado is a rolling-conformity state; §168(k) as restored by OBBBA flows through automatically. On a $150,000 §168(k) deduction, a Colorado STR investor at the 4.4% flat rate gets an additional $6,600 in state savings on top of the federal deduction. No add-back, no separate state depreciation schedule.",
      "last_regulatory_change": null
    },
    {
      "state": "Connecticut",
      "state_code": "CT",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 6.99,
      "flat_tax_rate": null,
      "one_liner": "Connecticut requires 100% add-back of §168(k) on the personal return, but allows recovery over 4 years for property placed in service after 9/27/2017 — a milder decoupling than most.",
      "statute_or_reg_citation": "Conn. Gen. Stat. §12-701(a)(20)(A)(ix) (PIT add-back); §12-217(b) (CBT decoupling); OCG-5",
      "primary_source_url": "https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG5BonusDepreciationNoticepdf.pdf",
      "notes_for_investors": "Connecticut individuals must add back federal §168(k) bonus depreciation on Form CT-1040 for tax years beginning on or after January 1, 2002. However, for property placed in service after September 27, 2017, taxpayers may subtract 25% of the added-back amount in each of the four succeeding taxable years — recovering the full deduction over 5 years total. On a $150,000 federal deduction, a Connecticut STR investor loses ~$10,485 in Year-1 timing (6.99% × $150,000) but recovers it over 4 subsequent years.",
      "last_regulatory_change": null
    },
    {
      "state": "Delaware",
      "state_code": "DE",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 6.6,
      "flat_tax_rate": null,
      "one_liner": "Delaware fully conforms to federal §168(k) — including 100% bonus restored by OBBBA for property placed in service between Jan 19, 2025 and Jan 1, 2031.",
      "statute_or_reg_citation": "30 Del. C. §1102 (Delaware taxable income = federal AGI with limited modifications; no §168(k) modification)",
      "primary_source_url": "https://revenue.delaware.gov/tax-forms/personal-income-tax-forms/",
      "notes_for_investors": "Delaware calculates taxable income from federal AGI with no depreciation modifications. §168(k) as restored by OBBBA flows through in full. On a $150,000 federal bonus deduction, a Delaware STR investor at the 6.6% top rate gets an additional $9,900 in Year-1 state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "District of Columbia",
      "state_code": "DC",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 10.75,
      "flat_tax_rate": null,
      "one_liner": "DC decouples from §168(k), §168(n), and caps §179 at $25,000 — STR investors must keep a separate DC depreciation schedule and add back the entire federal bonus deduction.",
      "statute_or_reg_citation": "D.C. Code §47-1803.03(a)(7)(J) (bonus depreciation decoupling)",
      "primary_source_url": "https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/notice_bonus_depreciation_decoupling_act.pdf",
      "notes_for_investors": "DC disallows §168(k), §168(n), and any §179 above $25,000 on D-20/D-30 returns and requires a separate DC depreciation schedule. On a $150,000 federal §168(k) deduction, a DC STR investor at the 10.75% top rate loses ~$16,125 in Year-1 state savings. Capital gains on disposition must also be recalculated using the DC (non-bonus) basis. The 2018 Bonus Depreciation Decoupling Act formalized this position.",
      "last_regulatory_change": null
    },
    {
      "state": "Florida",
      "state_code": "FL",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "Florida has no individual income tax, so §168(k) is a non-issue for individual STR investors — federal deduction is the whole benefit.",
      "statute_or_reg_citation": "Fla. Const. Art. VII, §5 (no individual income tax). For corporate returns, F.S. §220.13(1)(e) requires §168(k) add-back with 7-year subtraction recovery.",
      "primary_source_url": "https://floridarevenue.com/taxes/tips/Documents/TIP_25C01-01.pdf",
      "notes_for_investors": "For individuals, Florida has no personal income tax — the federal §168(k) deduction is the entire benefit ($55,500 at 37% on a $150,000 deduction). For C-corp STR entities filing Form F-1120, Florida requires §168(k) add-back with a 1/7 annual subtraction over 7 years (applies to assets placed in service before January 1, 2027 under current statute). Most STR investors hold in disregarded LLCs or S-corps and pay no FL entity-level tax on the property income.",
      "last_regulatory_change": null
    },
    {
      "state": "Georgia",
      "state_code": "GA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 5.19,
      "flat_tax_rate": 5.19,
      "one_liner": "Georgia decouples from §168(k) — STR investors must add back 100% of the federal bonus deduction; state depreciation follows the standard MACRS schedule.",
      "statute_or_reg_citation": "O.C.G.A. §48-7-21(b)(9) (Georgia's IRC conformity does not adopt §168(k), §1400L, §1400N(d)(1)); HB 1162 (2024)",
      "primary_source_url": "https://dor.georgia.gov/taxes/tax-rules-and-policies/income-tax-federal-tax-changes",
      "notes_for_investors": "Georgia's IRC conformity statute (HB 1162, 2024) adopts the IRC as of January 1, 2024 but explicitly excludes §168(k). On a $150,000 federal bonus deduction, a Georgia STR investor at the 5.19% flat rate loses ~$7,785 in Year-1 state savings, recovered over the property's normal MACRS life. Reported on Georgia Form 4562 (state version).",
      "last_regulatory_change": "2024-04-22: HB 1162 signed; advanced IRC conformity to 1/1/2024 but §168(k) exclusion retained."
    },
    {
      "state": "Hawaii",
      "state_code": "HI",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 11.0,
      "flat_tax_rate": null,
      "one_liner": "Hawaii explicitly does not adopt §168(k) — a full 100% add-back is required; at the 11% top rate, this is the second-largest state penalty after California.",
      "statute_or_reg_citation": "HRS §235-2.4(a) (IRC §168(k) 'shall not be operative for purposes of this chapter')",
      "primary_source_url": "https://tax.hawaii.gov/legal/tirarchive/",
      "notes_for_investors": "Hawaii Revised Statutes §235-2.4(a) explicitly makes §168(k) inoperative for Hawaii income tax. On a $150,000 federal bonus deduction, a Hawaii STR investor at the 11% top rate loses ~$16,500 in Year-1 state savings — recovered over MACRS life. Hawaii's high top rate + full decoupling combines to the second-worst state-level penalty (after California). Reported via addition modification on Hawaii Schedule N-11/N-15.",
      "last_regulatory_change": null
    },
    {
      "state": "Idaho",
      "state_code": "ID",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 5.3,
      "flat_tax_rate": 5.3,
      "one_liner": "Idaho does NOT conform to §168(k) despite otherwise adopting the federal IRC — STR investors must recompute depreciation without bonus using Form DBDA.",
      "statute_or_reg_citation": "Idaho Code §63-3004 (conformity with §168(k) exception); Form DBDA",
      "primary_source_url": "https://tax.idaho.gov/bonus-depreciation/",
      "notes_for_investors": "This is a common surprise — Idaho generally has rolling IRC conformity but has statutorily excluded §168(k) since 2001. Taxpayers claiming federal bonus must compute Idaho depreciation as if §168(k) did not exist and report the difference on Form DBDA (Deferred Bonus Depreciation Addition). On a $150,000 federal bonus deduction, an Idaho STR investor at the 5.3% flat rate loses ~$7,950 in Year-1 state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Illinois",
      "state_code": "IL",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.95,
      "flat_tax_rate": 4.95,
      "one_liner": "Illinois DOES conform to 100% §168(k) bonus depreciation — Illinois is not decoupled from the 100-percent bonus rate (only from lower percentages like 30/40/50/60/80%).",
      "statute_or_reg_citation": "35 ILCS 5/203(b)(2)(E-10) (bonus depreciation modification does not apply to 100% bonus); IL-4562 Instructions",
      "primary_source_url": "https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/miscellaneous/il-4562-instr.pdf",
      "notes_for_investors": "Common misconception: Illinois is NOT decoupled from 100% bonus depreciation. Illinois' IL-4562 add-back modification applies only to lower federal bonus percentages (30/40/50/60/80%). Because OBBBA restored 100% bonus permanently, Illinois taxpayers claiming §168(k) in 2025+ need no state adjustment. On a $150,000 federal bonus deduction, an Illinois STR investor at the 4.95% flat rate gets full $7,425 in state savings. If federal bonus phases below 100% in the future, IL-4562 add-back would re-activate.",
      "last_regulatory_change": null
    },
    {
      "state": "Indiana",
      "state_code": "IN",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 2.95,
      "flat_tax_rate": 2.95,
      "one_liner": "Indiana requires 100% add-back of §168(k) — but the 2.95% flat rate makes this one of the smallest dollar penalties.",
      "statute_or_reg_citation": "IC 6-3-1-33 (definition of 'bonus depreciation' for add-back purposes); Information Bulletin #118",
      "primary_source_url": "https://www.in.gov/dor/files/ib118.pdf",
      "notes_for_investors": "Indiana defines 'bonus depreciation' in IC 6-3-1-33 and requires taxpayers to add back the difference between federal depreciation (with bonus) and depreciation computed without §168(k). Reported using code 104 on the individual return. On a $150,000 federal bonus deduction, an Indiana STR investor at the 2.95% flat rate loses ~$4,425 in Year-1 state savings — one of the smallest dollar hits among decoupled states.",
      "last_regulatory_change": null
    },
    {
      "state": "Iowa",
      "state_code": "IA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 3.8,
      "flat_tax_rate": 3.8,
      "one_liner": "Iowa does not allow §168(k) bonus depreciation for any tax year — full add-back required on IA 4562 A&B.",
      "statute_or_reg_citation": "Iowa Code §422.7 / §422.35 (IRC conformity date; §168(k) not adopted); 701 IAC 40.65",
      "primary_source_url": "https://tax.iowa.gov/expanded-instructions/other-income-gambling-income-bonus-depreciation-section-179-adjustment-2013",
      "notes_for_investors": "Iowa has statutorily rejected §168(k) bonus depreciation since 2002 for all tax years. Report add-back on IA 4562A and take Iowa depreciation without bonus. On a $150,000 federal bonus deduction, an Iowa STR investor at the new 3.8% flat rate loses ~$5,700 in Year-1 state savings. Iowa also has a coupled-conformity rule: if the legislature ever conforms to §168(k), it automatically conforms to §163(j) business interest limits too.",
      "last_regulatory_change": null
    },
    {
      "state": "Kansas",
      "state_code": "KS",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 5.58,
      "flat_tax_rate": null,
      "one_liner": "Kansas has rolling IRC conformity and fully adopts §168(k) — STR investors get 100% Year-1 federal deduction plus state deduction at up to 5.58%.",
      "statute_or_reg_citation": "K.S.A. §79-32,138 (Kansas taxable income = federal AGI with statutory modifications; no §168(k) modification)",
      "primary_source_url": "https://www.ksrevenue.gov/personaltaxforms.html",
      "notes_for_investors": "Kansas begins with federal AGI and has no state-level §168(k) modification. On a $150,000 federal bonus deduction, a Kansas STR investor at the 5.58% top rate gets an additional ~$8,370 in state savings. §168(k) as restored by OBBBA flows through in full.",
      "last_regulatory_change": null
    },
    {
      "state": "Kentucky",
      "state_code": "KY",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 3.5,
      "flat_tax_rate": 3.5,
      "one_liner": "Kentucky's IRC conformity is fixed at December 31, 2001 for §168 — bonus depreciation has never been adopted; STR investors must depreciate without §168(k).",
      "statute_or_reg_citation": "KRS §141.010 (IRC as of December 31, 2001 for §168); KY Form 4562-K",
      "primary_source_url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions%20(2025).pdf",
      "notes_for_investors": "Kentucky's §168 conformity is frozen at IRC as in effect December 31, 2001 — before §168(k) was even enacted in its modern form. Taxpayers file Kentucky Form 4562-K to recompute depreciation without bonus. On a $150,000 federal bonus deduction, a Kentucky STR investor at the 3.5% flat rate loses ~$5,250 in Year-1 state savings. Kentucky also caps §179 at $100,000 (2003 IRC version).",
      "last_regulatory_change": null
    },
    {
      "state": "Louisiana",
      "state_code": "LA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 3.0,
      "flat_tax_rate": 3.0,
      "one_liner": "Louisiana fully conforms to federal §168(k) via rolling IRC adoption — STR investors get 100% federal deduction plus 3.0% Louisiana deduction.",
      "statute_or_reg_citation": "La. R.S. §47:293 (net income = federal AGI with limited state adjustments; no §168(k) modification)",
      "primary_source_url": "https://revenue.louisiana.gov/IndividualIncomeTax",
      "notes_for_investors": "Louisiana adopted a flat 3% individual income tax effective January 1, 2025 (HB 10, 2024 special session). Louisiana has rolling IRC conformity for depreciation and adopts §168(k) automatically. On a $150,000 federal bonus deduction, a Louisiana STR investor at 3.0% gets an additional $4,500 in state savings.",
      "last_regulatory_change": "2025-01-01: Louisiana moved to 3.0% flat individual income tax."
    },
    {
      "state": "Maine",
      "state_code": "ME",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 7.15,
      "flat_tax_rate": null,
      "one_liner": "Maine decouples from §168(k) but offers a partial offset via the Maine Capital Investment Credit (MCIC) tied to federal bonus — a unique 'add-back with a credit' structure.",
      "statute_or_reg_citation": "36 M.R.S. §5122(1)(BB) (bonus depreciation addition); §5219-NN (Maine Capital Investment Credit)",
      "primary_source_url": "https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/Bonusdep_guidance_2022.pdf",
      "notes_for_investors": "Maine requires 100% add-back of federal §168(k) bonus depreciation on the state return. However, taxpayers claiming federal bonus can also claim the Maine Capital Investment Credit (MCIC) equal to a percentage of the bonus (currently 1.2% of federal bonus for individuals for TY 2025). Recovery via subtraction modification over the property's depreciable life. On a $150,000 federal bonus deduction, a Maine STR investor at 7.15% top rate loses ~$10,725 in Year-1 state timing, partially offset by a ~$1,800 MCIC.",
      "last_regulatory_change": null
    },
    {
      "state": "Maryland",
      "state_code": "MD",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 6.5,
      "flat_tax_rate": null,
      "one_liner": "Maryland has statutorily decoupled from federal §168(k) since 2002 — non-manufacturers must add back 100%; a narrow manufacturing exception exists.",
      "statute_or_reg_citation": "Md. Code Ann. Tax-Gen. §10-210.1 (bonus depreciation decoupling); Form 500DM",
      "primary_source_url": "https://marylandtaxes.gov/forms/23_forms/500DM.pdf",
      "notes_for_investors": "Maryland requires a 100% add-back of §168(k) bonus depreciation on Form 500DM (Decoupling Modification) — with a narrow exception for certain manufacturing property. STR real estate does not qualify for the manufacturing exception. On a $150,000 federal bonus deduction, a Maryland STR investor at 6.5% top rate (plus ~2.5% local piggyback) loses ~$9,750 in state savings (plus another ~$3,750 in local income tax). Recovery over normal MACRS life via subtraction modification on Form 500DM.",
      "last_regulatory_change": null
    },
    {
      "state": "Massachusetts",
      "state_code": "MA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 9.0,
      "flat_tax_rate": null,
      "one_liner": "Massachusetts has explicitly disallowed §168(k) for PIT purposes since 2002 (TIR 02-11, 03-25) — full add-back with recovery over the property's normal life.",
      "statute_or_reg_citation": "Mass. Gen. Laws ch. 62, §2(d)(1)(N); TIR 02-11; TIR 03-25",
      "primary_source_url": "https://www.mass.gov/technical-information-release/tir-03-25-depreciable-business-assets-modifications-for-decoupling-from-federal-bonus-depreciation",
      "notes_for_investors": "Massachusetts requires a 100% add-back of §168(k) bonus depreciation for both PIT and corporate excise purposes. Massachusetts DOES allow the §179 expense election (unlike bonus). The 4% millionaires' surtax on income >$1M means high-income STR investors face an effective 9% top rate. On a $150,000 federal bonus deduction, a Massachusetts STR investor at 9% loses ~$13,500 in Year-1 state savings. Basis is adjusted for state purposes so disposition gain/loss is recalculated on the MA return.",
      "last_regulatory_change": null
    },
    {
      "state": "Michigan",
      "state_code": "MI",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.25,
      "flat_tax_rate": 4.25,
      "one_liner": "Michigan conforms to §168(k) as of the IRC in effect December 31, 2024 (with pre-OBBBA phaseout) — STR investors get 40% bonus in 2025, 20% in 2026 for state purposes.",
      "statute_or_reg_citation": "MCL §206.607 / §206.30 (Michigan individual income tax base = federal AGI with limited modifications, IRC as of December 31, 2024 per October 2025 budget)",
      "primary_source_url": "https://www.michigan.gov/taxes",
      "notes_for_investors": "This is a critical divergence: Michigan's October 2025 budget package updated IRC conformity to December 31, 2024 — BEFORE OBBBA. So for Michigan purposes, §168(k) follows the pre-OBBBA phaseout: 40% for 2025, 20% for 2026, 0% for 2027. Federal remains 100%. On a $150,000 federal bonus deduction in 2026, Michigan allows only $30,000 as state bonus — a $120,000 add-back. Michigan STR investors lose ~$5,100 in Year-1 state savings vs. federal at 4.25% flat rate.",
      "last_regulatory_change": "2025-10: Governor Whitmer signed budget package updating IRC conformity to 12/31/2024, keeping pre-OBBBA phaseout schedule."
    },
    {
      "state": "Minnesota",
      "state_code": "MN",
      "verified_as_of": "2026-08-17",
      "conformity_status": "partial",
      "add_back_pct": 80,
      "top_marginal_rate": 9.85,
      "flat_tax_rate": null,
      "one_liner": "Minnesota is a partial conformer — 80% of federal §168(k) must be added back in Year 1, then 1/5 of the addback recovered each year over the next 5 years.",
      "statute_or_reg_citation": "Minn. Stat. §290.0131 subd. 10 (individual addition); §290.0132 subd. 14 (subtraction over 5 years); Schedule M1MB",
      "primary_source_url": "https://www.revenue.state.mn.us/bonus-depreciation",
      "notes_for_investors": "Minnesota requires an 80% add-back of federal §168(k) bonus depreciation in the year claimed, allowing 20% state deduction in Year 1. The 80% addback is recovered by subtracting 20% (i.e., 16% of original bonus) in each of the 5 succeeding years. On a $150,000 federal bonus deduction, a Minnesota STR investor gets $30,000 state deduction in Year 1 (worth ~$2,955 at 9.85%) and defers ~$11,820 in state savings over years 2-6. The 2026 Omnibus Tax Bill preserves this treatment; qualified production property is excluded from the addback.",
      "last_regulatory_change": "2026-05-26: Omnibus Tax Bill (HF2438/SF2082) preserved the 80% addback and clarified exclusion for qualified production property."
    },
    {
      "state": "Mississippi",
      "state_code": "MS",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.0,
      "flat_tax_rate": 4.0,
      "one_liner": "Mississippi fully conforms to federal §168(k) beginning TY 2023 — STR investors get 100% federal deduction plus 4.0% state deduction.",
      "statute_or_reg_citation": "Miss. Code Ann. §27-7-17 (depreciation conformity, adopted 2023)",
      "primary_source_url": "https://www.dor.ms.gov/individual/individual-income-tax-forms",
      "notes_for_investors": "Mississippi conformed to federal §168(k) beginning with tax year 2023 (previously required non-conformity adjustments). §168(k) as restored by OBBBA flows through. On a $150,000 federal bonus deduction, a Mississippi STR investor at 4.0% flat rate gets an additional $6,000 in state savings. Note: Mississippi is phasing down its flat rate over multiple years.",
      "last_regulatory_change": null
    },
    {
      "state": "Missouri",
      "state_code": "MO",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.7,
      "flat_tax_rate": 4.7,
      "one_liner": "Missouri conforms to federal §168(k) — STR investors get 100% Year-1 federal deduction plus 4.7% Missouri deduction.",
      "statute_or_reg_citation": "Mo. Rev. Stat. §143.011 / §143.121 (Missouri taxable income = federal AGI; rolling IRC conformity)",
      "primary_source_url": "https://dor.mo.gov/taxation/individual/",
      "notes_for_investors": "Missouri conforms to federal §168(k) via rolling IRC conformity, with one narrow exception for assets placed in service between July 1, 2002 and July 1, 2003. On a $150,000 federal bonus deduction, a Missouri STR investor at the 4.7% top rate gets an additional $7,050 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Montana",
      "state_code": "MT",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 5.65,
      "flat_tax_rate": null,
      "one_liner": "Montana fully conforms to federal §168(k) via rolling IRC conformity — full state deduction at up to 5.65% top rate.",
      "statute_or_reg_citation": "Mont. Code Ann. §15-30-2101 (IRC by reference, rolling conformity)",
      "primary_source_url": "https://mtrevenue.gov/individuals/",
      "notes_for_investors": "Montana has rolling IRC conformity and adopts §168(k) as amended by OBBBA. On a $150,000 federal bonus deduction, a Montana STR investor at 5.65% top rate gets an additional ~$8,475 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Nebraska",
      "state_code": "NE",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.55,
      "flat_tax_rate": null,
      "one_liner": "Nebraska fully conforms to federal §168(k) — STR investors get 100% Year-1 federal deduction plus state deduction at up to 4.55%.",
      "statute_or_reg_citation": "Neb. Rev. Stat. §77-2716 (federal AGI conformity, rolling)",
      "primary_source_url": "https://revenue.nebraska.gov/individuals",
      "notes_for_investors": "Nebraska conforms to federal §168(k) via rolling IRC conformity. Nebraska's top rate is scheduled to phase down to 3.99% by 2027. On a $150,000 federal bonus deduction, a Nebraska STR investor at 4.55% top rate gets an additional ~$6,825 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Nevada",
      "state_code": "NV",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "Nevada has no individual income tax — §168(k) conformity does not apply; federal deduction is the entire benefit.",
      "statute_or_reg_citation": "Nev. Const. Art. 10 (no individual income tax)",
      "primary_source_url": "https://tax.nv.gov/",
      "notes_for_investors": "Nevada individuals owe no state personal income tax on STR income. The federal §168(k) deduction is the entire tax benefit ($55,500 at 37% on a $150,000 deduction). Nevada's Commerce Tax on gross receipts over $4M doesn't allow §168(k) deductions (gross receipts basis), but few individual STR investors reach that threshold.",
      "last_regulatory_change": null
    },
    {
      "state": "New Hampshire",
      "state_code": "NH",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "New Hampshire has no personal income tax on wages, but the BPT (Business Profits Tax) decouples from §168(k) — applies to individual STR investors operating as sole props or pass-throughs.",
      "statute_or_reg_citation": "RSA 77-A:3-b, I (BPT decouples from IRC §168(k) and §179); RSA 77-A:1 (BPT applicable to business income over $103,000 gross receipts)",
      "primary_source_url": "https://www.revenue.nh.gov/taxes-glance/business-taxes/federal-tax-reform-information",
      "notes_for_investors": "New Hampshire has no individual income tax on wages/salaries, but the Business Profits Tax (BPT) applies to any 'business organization' — including sole proprietorships, LLCs, and pass-throughs — with gross business income over $103,000 (2025 threshold). The BPT rate is 7.5% (2026). BPT decouples from §168(k); STR investors above the threshold must add back federal bonus. On a $150,000 federal bonus deduction, an above-threshold NH STR investor loses ~$11,250 in BPT savings at 7.5%. Small STR operations below $103K are unaffected.",
      "last_regulatory_change": null
    },
    {
      "state": "New Jersey",
      "state_code": "NJ",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 10.75,
      "flat_tax_rate": null,
      "one_liner": "New Jersey has decoupled from §168(k) for both CBT and Gross Income Tax since 2002 — STR investors lose Year-1 timing benefit at a top rate of 10.75%.",
      "statute_or_reg_citation": "N.J.S.A. §54:10A-4(k)(1), (k)(2)(F), (k)(12), (k)(13) (CBT decoupling); N.J.S.A. §54A:5-1.2 (GIT decoupling); P.L. 2002 c.40",
      "primary_source_url": "https://www.nj.gov/treasury/taxation/decouples2.shtml",
      "notes_for_investors": "New Jersey has decoupled from §168(k) since P.L. 2002 c.40. For Gross Income Tax (GIT) — the tax individual STR investors pay — federal bonus depreciation is disallowed and depreciation is recomputed under IRC as of the applicable statutory date. Reported on Form GIT-DEP. On a $150,000 federal bonus deduction, a NJ STR investor at the 10.75% top rate loses ~$16,125 in Year-1 state savings. NJ's high rate + full decoupling = one of the largest state timing hits nationally.",
      "last_regulatory_change": null
    },
    {
      "state": "New Mexico",
      "state_code": "NM",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 5.9,
      "flat_tax_rate": null,
      "one_liner": "New Mexico fully conforms to federal §168(k) via rolling IRC conformity — STR investors get 100% Year-1 federal deduction plus state deduction at up to 5.9%.",
      "statute_or_reg_citation": "N.M. Stat. §7-2-2 (IRC by reference, rolling)",
      "primary_source_url": "https://www.tax.newmexico.gov/individuals/",
      "notes_for_investors": "New Mexico has rolling IRC conformity and adopts §168(k) as restored by OBBBA. On a $150,000 federal bonus deduction, a NM STR investor at 5.9% top rate gets an additional $8,850 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "New York",
      "state_code": "NY",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 10.9,
      "flat_tax_rate": null,
      "one_liner": "New York has decoupled from §168(k) since 2003 (with narrow Liberty Zone/Resurgence Zone exceptions) — STR investors face 100% add-back at up to 10.9%.",
      "statute_or_reg_citation": "N.Y. Tax Law §612(b)(8) (PIT addition A-209); §612(c)(15) (PIT subtraction S-213); Form IT-398",
      "primary_source_url": "https://www.tax.ny.gov/forms/n-notices/n-26-1.htm",
      "notes_for_investors": "New York has decoupled from §168(k) since 2003 for both individual and corporate purposes, with narrow exceptions for Resurgence Zone and Liberty Zone property. Individuals report add-back on Form IT-225 using code A-209 and take state depreciation on Form IT-398. On a $150,000 federal bonus deduction, a NY STR investor at 10.9% top rate loses ~$16,350 in Year-1 state savings. NYC adds another 3.876% top rate (via NYC-1127 / IT-201 city tax) — total effective loss ~$22,164 in NYC. The 2026-2027 NY budget also decoupled from OBBBA's §168(n) qualified production property provisions.",
      "last_regulatory_change": "2026 (FY 2026-27 budget): NY decoupled from OBBBA §168(n) qualified production property; §168(k) decoupling from 2003 unchanged."
    },
    {
      "state": "North Carolina",
      "state_code": "NC",
      "verified_as_of": "2026-08-17",
      "conformity_status": "partial",
      "add_back_pct": 85,
      "top_marginal_rate": 3.99,
      "flat_tax_rate": 3.99,
      "one_liner": "North Carolina is a partial conformer — 85% of federal §168(k) must be added back Year 1, with 20% of the addback recovered in each of the next 5 years.",
      "statute_or_reg_citation": "N.C. Gen. Stat. §105-153.6 (individual bonus depreciation addition); §105-130.5B (corporate); NCDOR Directive",
      "primary_source_url": "https://www.ncdor.gov/taxes-forms/individual-income-tax/filing-topics/adjustment-bonus-depreciation",
      "notes_for_investors": "North Carolina allows 15% of federal §168(k) bonus in Year 1 and requires the other 85% to be added back. The addback is then subtracted at 20% per year over the following 5 taxable years — full recovery in 5 years. On a $150,000 federal bonus deduction, a NC STR investor gets $22,500 state deduction in Year 1 (worth ~$898 at 3.99% flat rate) and recovers the remaining $127,500 addback ratably. Total NC state benefit spread over 6 years matches federal, just delayed. Basis of the asset is the same for state and federal.",
      "last_regulatory_change": null
    },
    {
      "state": "North Dakota",
      "state_code": "ND",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 2.5,
      "flat_tax_rate": null,
      "one_liner": "North Dakota fully conforms to federal §168(k) via rolling IRC adoption — the low 2.5% top rate makes state savings modest but frictionless.",
      "statute_or_reg_citation": "N.D. Cent. Code §57-38-01 (IRC by reference, rolling conformity)",
      "primary_source_url": "https://www.tax.nd.gov/individual",
      "notes_for_investors": "North Dakota has rolling IRC conformity and adopts §168(k) as restored by OBBBA. On a $150,000 federal bonus deduction, a ND STR investor at 2.5% top rate gets an additional $3,750 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Ohio",
      "state_code": "OH",
      "verified_as_of": "2026-08-18",
      "conformity_status": "partial",
      "add_back_pct": 83.3,
      "top_marginal_rate": 2.75,
      "flat_tax_rate": 2.75,
      "one_liner": "Ohio is a partial conformer — 5/6 (~83.3%) of federal §168(k) must be added back in Year 1, with 1/5 of the add-back recovered each of the following 5 years — Ohio moved to a flat 2.75% rate in 2026.",
      "statute_or_reg_citation": "Ohio Rev. Code §5747.01(A)(20) (5/6 add-back for individuals); §5733.40(A)(5) (PTE); 2/3 add-back for growing taxpayers, 6/6 for federal NOL scenarios",
      "primary_source_url": "https://tax.ohio.gov/help-center/faqs/pass-through-entities-fiduciaries-bonus-depreciation/pass-through-entities-fiduciaries-bonus-depreciation",
      "notes_for_investors": "Ohio has a graduated add-back: default is 5/6 (~83.3%) of federal §168(k) added back in Year 1 with 1/5 of the addback subtracted in each of the next 5 years. A 2/3 add-back applies if Ohio withholding grew 10%+ YoY; 6/6 (100%) applies if federal §168(k) creates a federal NOL. Ohio moved to a flat 2.75% individual rate on 1/1/2026 (HB 96). On a $150,000 federal bonus deduction, an Ohio STR investor loses ~$3,437 in Year-1 state savings (5/6 × $150K × 2.75%), recovered ratably over 5 years.",
      "last_regulatory_change": "2026-01-01: Ohio HB 96 moved individual income tax to flat 2.75% (from 3.125% top rate in 2025)."
    },
    {
      "state": "Oklahoma",
      "state_code": "OK",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.5,
      "flat_tax_rate": null,
      "one_liner": "Oklahoma fully conforms to federal §168(k) — STR investors get 100% Year-1 federal deduction plus state deduction at up to 4.5%.",
      "statute_or_reg_citation": "68 O.S. §2353 (Oklahoma taxable income = federal AGI; rolling conformity)",
      "primary_source_url": "https://oklahoma.gov/tax/individuals.html",
      "notes_for_investors": "Oklahoma has rolling IRC conformity and adopts §168(k) as restored by OBBBA. On a $150,000 federal bonus deduction, an Oklahoma STR investor at 4.5% top rate gets an additional $6,750 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Oregon",
      "state_code": "OR",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 9.9,
      "flat_tax_rate": null,
      "one_liner": "Oregon fully conforms to federal §168(k) for property placed in service on or after January 1, 2011 — the high 9.9% top rate makes conformity especially valuable.",
      "statute_or_reg_citation": "ORS §316.012 (IRC by reference); Schedule OR-DEPR (only used for 2009-2010 non-conformity period assets)",
      "primary_source_url": "https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf",
      "notes_for_investors": "Oregon has a narrow historical non-conformity window for assets placed in service 1/1/2009 through 12/31/2010, but for all assets placed in service on or after January 1, 2011, Oregon fully conforms to §168(k). §168(k) as restored by OBBBA flows through. On a $150,000 federal bonus deduction, an Oregon STR investor at the 9.9% top rate gets an additional $14,850 in state savings — the highest full-conformer state savings in the country.",
      "last_regulatory_change": null
    },
    {
      "state": "Pennsylvania",
      "state_code": "PA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 3.07,
      "flat_tax_rate": 3.07,
      "one_liner": "Pennsylvania decouples from §168(k) for both PIT and CNIT — Act 72 (2018) fixed CNIT recovery mechanics, but PIT still has no bonus depreciation.",
      "statute_or_reg_citation": "72 P.S. §7401(3)1(r) (CNIT §168(k) decoupling; Act 72 of 2018); 72 P.S. §7303 (PIT net profits computed without §168(k))",
      "primary_source_url": "https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Income-Loss-Business-Profession-Farm.aspx",
      "notes_for_investors": "Pennsylvania Personal Income Tax (PIT) is the tax individual STR investors pay. PA PIT computes net profits from federal Schedule C/E without §168(k) bonus depreciation — depreciation is recalculated under §§167 and 168 without bonus. Act 72 (2018) fixed CNIT depreciation timing for corporate taxpayers but PIT treatment is unchanged. On a $150,000 federal bonus deduction, a PA STR investor at the 3.07% flat rate loses ~$4,605 in Year-1 state savings. Philadelphia BIRT also decouples separately (following state approach).",
      "last_regulatory_change": null
    },
    {
      "state": "Rhode Island",
      "state_code": "RI",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 5.99,
      "flat_tax_rate": null,
      "one_liner": "Rhode Island decoupled from OBBBA in December 2025 — full add-back of §168(k) required for both PIT and business corporation tax.",
      "statute_or_reg_citation": "R.I. Gen. Laws §44-30-12(b)(9) (PIT §168(k) addback); §44-61-1 (BCT); 280-RICR-20-55-17 (PIT reg); 280-RICR-20-25-16 (BCT reg)",
      "primary_source_url": "https://tax.ri.gov/sites/g/files/xkgbur541/files/2026-02/Proposed%20Adoption%20280-RICR-20-55-17.pdf",
      "notes_for_investors": "Rhode Island issued emergency regulations in December 2025 formally decoupling from H.R. 1 (OBBBA) with respect to §168(k) bonus depreciation. Taxpayers must add back their apportioned bonus depreciation to Rhode Island income. On a $150,000 federal bonus deduction, a RI STR investor at 5.99% top rate loses ~$8,985 in Year-1 state savings. Rhode Island has issued both PIT and BCT regulations to implement the decoupling.",
      "last_regulatory_change": "2025-12-15: RI Division of Taxation issued emergency regulations decoupling from OBBBA §168(k) and §181."
    },
    {
      "state": "South Carolina",
      "state_code": "SC",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 6.0,
      "flat_tax_rate": null,
      "one_liner": "South Carolina has never adopted §168(k) — STR investors add back the entire federal bonus and depreciate on the standard schedule for state purposes.",
      "statute_or_reg_citation": "S.C. Code Ann. §12-6-50 (list of IRC sections not adopted by South Carolina, including §168(k))",
      "primary_source_url": "https://dor.sc.gov/forms-site/Forms/SC1040inst_2022.pdf/",
      "notes_for_investors": "This is a common surprise — South Carolina otherwise follows federal AGI closely but has statutorily excluded §168(k) since 2002 via S.C. Code §12-6-50. Depreciable life is the same as federal, but the bonus is not allowed. On a $150,000 federal bonus deduction, a SC STR investor at the 6.0% top rate loses ~$9,000 in Year-1 state savings. Basis is adjusted for SC purposes so disposition gain/loss is recalculated on the SC return.",
      "last_regulatory_change": null
    },
    {
      "state": "South Dakota",
      "state_code": "SD",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "South Dakota has no individual or corporate income tax — §168(k) conformity is not applicable; federal deduction is the entire benefit.",
      "statute_or_reg_citation": "S.D. Const. Art. XI (no income tax authority)",
      "primary_source_url": "https://dor.sd.gov/individuals/",
      "notes_for_investors": "South Dakota has no individual income tax and no corporate income tax. STR investors receive the federal §168(k) benefit without any state-level adjustment. On a $150,000 federal bonus deduction, federal savings at 37% = $55,500; no state tax at all.",
      "last_regulatory_change": null
    },
    {
      "state": "Tennessee",
      "state_code": "TN",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "Tennessee has no personal income tax (Hall tax repealed 2021) — §168(k) doesn't affect individuals; F&E tax decouples from bonus for entities.",
      "statute_or_reg_citation": "Tenn. Code §67-4-2006 (F&E excise tax decoupling from §168(k) — Notice ET-2)",
      "primary_source_url": "https://revenue.support.tn.gov/hc/en-us/articles/360057792852-ET-2-Federal-Bonus-Depreciation-may-be-Deducted-for-Excise-Tax",
      "notes_for_investors": "Tennessee has no individual income tax (the last remnant, the Hall tax on interest/dividends, was fully phased out in 2021). Individual STR investors owe no Tennessee state income tax and get the full federal §168(k) benefit. Note: TN Franchise & Excise Tax (F&E), which applies to LLCs and corporations at 6.5%, permanently decoupled from §168(k) for assets purchased on or before 12/31/2022 per Notice ET-2. Most individual STR investors hold in disregarded LLCs and aren't subject to F&E.",
      "last_regulatory_change": null
    },
    {
      "state": "Texas",
      "state_code": "TX",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "Texas has no individual income tax — §168(k) doesn't affect individuals; 2026 franchise tax rules newly aligned with OBBBA bonus depreciation.",
      "statute_or_reg_citation": "Tex. Const. Art. VIII, §24 (no individual income tax); Tex. Tax Code §171.101 (franchise tax IRC conformity, updated Dec 2025)",
      "primary_source_url": "https://comptroller.texas.gov/about/media-center/news/20251201-acting-texas-comptroller-kelly-hancock-updates-franchise-tax-depreciation-rules-to-align-with-federal-provisions-1764005132713",
      "notes_for_investors": "Texas has no individual income tax. STR investors receive the full federal §168(k) benefit ($55,500 at 37% on $150K). In December 2025, Acting Comptroller Kelly Hancock updated franchise tax depreciation rules to align with OBBBA bonus depreciation, effective with the 2026 franchise tax report — but most individual STRs are below the $2.47M no-tax-due franchise threshold anyway.",
      "last_regulatory_change": "2025-12-01: Texas Comptroller updated franchise tax depreciation rules to align with OBBBA §168(k) beginning with 2026 report."
    },
    {
      "state": "Utah",
      "state_code": "UT",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.5,
      "flat_tax_rate": 4.5,
      "one_liner": "Utah fully conforms to federal §168(k) via rolling IRC conformity — STR investors get 100% federal deduction plus 4.5% Utah deduction.",
      "statute_or_reg_citation": "Utah Code §59-10-103 (Utah taxable income = federal taxable income with modifications; no §168(k) modification)",
      "primary_source_url": "https://tax.utah.gov/",
      "notes_for_investors": "Utah begins with federal taxable income and has no §168(k) modification. On a $150,000 federal bonus deduction, a Utah STR investor at the 4.5% flat rate gets an additional $6,750 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Vermont",
      "state_code": "VT",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 8.75,
      "flat_tax_rate": null,
      "one_liner": "Vermont decouples from §168(k) for individuals, trusts, and estates for property placed in service on or after Jan 1 2008 — full add-back at up to 8.75%.",
      "statute_or_reg_citation": "32 V.S.A. §5811(18)(A), (21)(A) (Vermont net income modified to remove §168(k) deduction); TB-44",
      "primary_source_url": "https://tax.vermont.gov/sites/tax/files/documents/TB44.pdf",
      "notes_for_investors": "Vermont excludes §168(k) from the individual/trust/estate tax base by statute. Taxpayers must recompute depreciation without bonus and report on Schedule IN-112. On a $150,000 federal bonus deduction, a Vermont STR investor at the 8.75% top rate loses ~$13,125 in Year-1 state savings, recovered over subsequent years as MACRS depreciation exceeds federal (which was accelerated). Pass-through owners must adjust individually. Note: some conformity-tracker tables incorrectly list Vermont as a full conformer — the individual-level decoupling is clear in 32 V.S.A.",
      "last_regulatory_change": null
    },
    {
      "state": "Virginia",
      "state_code": "VA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 5.75,
      "flat_tax_rate": null,
      "one_liner": "Virginia's fixed-date IRC conformity explicitly excludes §168(k) bonus depreciation — STR investors add back 100% and recompute state depreciation.",
      "statute_or_reg_citation": "Va. Code §58.1-301 (fixed-date IRC conformity with §168(k) explicit exclusion); §58.1-322.03 (individual addition)",
      "primary_source_url": "https://www.tax.virginia.gov/laws-rules-decisions/tax-bulletins/16-1",
      "notes_for_investors": "Virginia uses fixed-date IRC conformity but has explicitly disallowed §168(k) since 2003 (and separately §168(l), §168(m), §1400L, §1400N). Depreciation is recomputed for VA purposes and the difference reported as addition/subtraction. On a $150,000 federal bonus deduction, a Virginia STR investor at the 5.75% top rate loses ~$8,625 in Year-1 state savings. Note: Virginia DOES allow §168(n) for qualified disaster property.",
      "last_regulatory_change": null
    },
    {
      "state": "Washington",
      "state_code": "WA",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "Washington has no individual income tax on ordinary income — §168(k) conformity does not apply to STR investors; federal deduction is the entire benefit.",
      "statute_or_reg_citation": "Wash. Const. Art. VII (uniformity clause; no individual income tax on ordinary income)",
      "primary_source_url": "https://dor.wa.gov/",
      "notes_for_investors": "Washington has no individual income tax on ordinary/rental income (the 2022 capital gains excise tax applies only to certain long-term capital gains above $250K — not to ordinary STR income). On a $150,000 federal §168(k) deduction, WA STR investors get the full federal benefit ($55,500 at 37%) and owe no state income tax on the property. Washington's B&O tax applies to gross receipts but §168(k) is irrelevant (gross basis).",
      "last_regulatory_change": null
    },
    {
      "state": "West Virginia",
      "state_code": "WV",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 4.82,
      "flat_tax_rate": null,
      "one_liner": "West Virginia fully conforms to federal §168(k) via rolling IRC conformity — STR investors get 100% Year-1 federal deduction plus state deduction at up to 4.82%.",
      "statute_or_reg_citation": "W. Va. Code §11-21-9 (WV taxable income = federal AGI, rolling conformity)",
      "primary_source_url": "https://tax.wv.gov/Individuals/",
      "notes_for_investors": "West Virginia has rolling IRC conformity and adopts §168(k) as restored by OBBBA. On a $150,000 federal bonus deduction, a WV STR investor at 4.82% top rate gets an additional $7,230 in state savings.",
      "last_regulatory_change": null
    },
    {
      "state": "Wisconsin",
      "state_code": "WI",
      "verified_as_of": "2026-08-17",
      "conformity_status": "decoupled",
      "add_back_pct": 100,
      "top_marginal_rate": 7.65,
      "flat_tax_rate": null,
      "one_liner": "Wisconsin uses IRC as of January 1, 2014 for depreciation — §168(k) is not adopted and 100% add-back is required on Schedule I.",
      "statute_or_reg_citation": "Wis. Stat. §71.22(4)(k) (IRC as of January 1, 2014 for depreciation); Schedule I",
      "primary_source_url": "https://www.revenue.wi.gov/TaxForms2025/2025-ScheduleI-Inst.pdf",
      "notes_for_investors": "Wisconsin's depreciation conformity is fixed at IRC as in effect January 1, 2014, before the most recent §168(k) enhancements. Wisconsin does not adopt §168(k), so federal bonus must be added back and depreciation recomputed using pre-2014 rules. Reported on Schedule I. On a $150,000 federal bonus deduction, a Wisconsin STR investor at the 7.65% top rate loses ~$11,475 in Year-1 state savings, recovered as Wisconsin depreciation exceeds federal in later years.",
      "last_regulatory_change": null
    },
    {
      "state": "Wyoming",
      "state_code": "WY",
      "verified_as_of": "2026-08-17",
      "conformity_status": "full",
      "add_back_pct": 0,
      "top_marginal_rate": 0.0,
      "flat_tax_rate": null,
      "one_liner": "Wyoming has no individual or corporate income tax — §168(k) conformity does not apply; federal deduction is the entire tax benefit.",
      "statute_or_reg_citation": "Wyo. Const. Art. 15 (no state income tax)",
      "primary_source_url": "https://revenue.wyo.gov/",
      "notes_for_investors": "Wyoming has no individual income tax and no corporate income tax. STR investors receive the full federal §168(k) benefit with zero state-level adjustment. On a $150,000 federal bonus deduction, federal savings at 37% = $55,500; no state tax at all.",
      "last_regulatory_change": null
    }
  ]
}