US Bonus Depreciation Conformity Map (2026)
Click any state for its 2026 conformity guide. Hover or focus for the top marginal rate and federal §168(k) add-back — verified against state DOR primary sources and OBBBA (P.L. 119-21).
25 of 51 US jurisdictions conform fully to federal §168(k) bonus depreciation post-OBBBA. 24 are decoupled and require a 100% add-back. 2 (Minnesota, North Carolina) are partial conformers. The federal deduction is unaffected in every case — state add-back rules only change the state-level Year-1 timing. For a $150K federal §168(k) deduction, the state impact ranges from $0 (no-income-tax states) to about $20K in Year-1 state savings deferred (California, top of the list).
State deep-dive guides — every US jurisdiction
Every US state and DC now has a dedicated STR-investor deep dive covering the exact statute, add-back mechanics, timing of the state recovery, and dollar impact on a typical $150K federal §168(k) deduction. The 9 states with no individual income tax share a bundled pillar. Start with the state your property sits in — or the state you file in, if different.
- Alabama · Full
- Alaska · No tax
- Arizona · Decoupled
- Arkansas · Decoupled
- California · Decoupled
- Colorado · Full
- Connecticut · Decoupled
- Delaware · Full
- DC · Decoupled
- Florida · No tax
- Georgia · Decoupled
- Hawaii · Decoupled
- Idaho · Decoupled
- Illinois · Full
- Indiana · Decoupled
- Iowa · Decoupled
- Kansas · Full
- Kentucky · Decoupled
- Louisiana · Full
- Maine · Decoupled
- Maryland · Decoupled
- Massachusetts · Decoupled
- Michigan · Partial
- Minnesota · Partial 80%
- Mississippi · Full
- Missouri · Full
- Montana · Full
- Nebraska · Full
- Nevada · No tax
- New Hampshire · BPT only
- New Jersey · Decoupled
- New Mexico · Full
- New York · Decoupled
- North Carolina · Partial 85%
- North Dakota · Full
- Ohio · Partial 5/6
- Oklahoma · Full
- Oregon · Full
- Pennsylvania · Decoupled
- Rhode Island · Decoupled
- South Carolina · Decoupled
- South Dakota · No tax
- Tennessee · No tax
- Texas · No tax
- Utah · Full
- Vermont · Decoupled
- Virginia · Decoupled
- Washington · No tax
- West Virginia · Full
- Wisconsin · Decoupled
- Wyoming · No tax
Interactive tool: enter your federal deduction, get the state impact in dollars
Powered by the same dataset as this article. Pick a state, adjust the federal deduction amount, see the actual state add-back miss.
The 51-jurisdiction conformity table
Sorted by conformity status — decoupled states (highest add-back) first, then partial conformers, then full. Statute citation is the primary state-DOR authority. Click a state name for the full deep-dive article where available.
| State | Status | Add-back | Top rate | Statute / cite |
|---|---|---|---|---|
| Arizona | Decoupled | 100% | 2.50% | A.R.S. §43-1021 / §43-1022 (subtraction for depreciation computed without §168(k |
| Arkansas | Decoupled | 100% | 3.90% | Ark. Code Ann. §26-51-428 (adopts IRC §§167 and 168(a)-(j) as in effect January |
| California | Decoupled | 100% | 13.30% | R&TC §17024.5 (California specified-date conformity, IRC as of January 1, 2025 p |
| Connecticut | Decoupled | 100% | 6.99% | Conn. Gen. Stat. §12-701(a)(20)(A)(ix) (PIT add-back) |
| District of Columbia | Decoupled | 100% | 10.75% | D.C. Code §47-1803.03(a)(7)(J) (bonus depreciation decoupling) |
| Georgia | Decoupled | 100% | 5.19% | O.C.G.A. §48-7-21(b)(9) (Georgia's IRC conformity does not adopt IRS §168(k), §1400L |
| Hawaii | Decoupled | 100% | 11.00% | HRS §235-2.4(a) (IRC §168(k) 'shall not be operative for purposes of this chapte |
| Idaho | Decoupled | 100% | 5.30% | Idaho Code §63-3004 (conformity with IRS §168(k) exception) |
| Indiana | Decoupled | 100% | 2.95% | IC 6-3-1-33 (definition of 'bonus depreciation' for add-back purposes) |
| Iowa | Decoupled | 100% | 3.80% | Iowa Code §422.7 / §422.35 (IRC conformity date |
| Kentucky | Decoupled | 100% | 3.50% | KRS §141.010 (IRC as of December 31, 2001 for §168) |
| Maine | Decoupled | 100% | 7.15% | 36 M.R.S. §5122(1)(BB) (bonus depreciation addition) |
| Maryland | Decoupled | 100% | 6.50% | Md. Code Ann. Tax-Gen. §10-210.1 (bonus depreciation decoupling) |
| Massachusetts | Decoupled | 100% | 9.00% | Mass. Gen. Laws ch. 62, §2(d)(1)(N) |
| New Hampshire | Decoupled | 100% | — | RSA 77-A:3-b, I (BPT decouples from IRC §168(k) and §179) |
| New Jersey | Decoupled | 100% | 10.75% | N.J.S.A. §54:10A-4(k)(1), (k)(2)(F), (k)(12), (k)(13) (CBT decoupling) |
| New York | Decoupled | 100% | 10.90% | N.Y. Tax Law §612(b)(8) (PIT addition A-209) |
| Pennsylvania | Decoupled | 100% | 3.07% | 72 P.S. §7401(3)1(r) (CNIT IRS §168(k) decoupling |
| Rhode Island | Decoupled | 100% | 5.99% | R.I. Gen. Laws §44-30-12(b)(9) (PIT IRS §168(k) addback) |
| South Carolina | Decoupled | 100% | 6.00% | S.C. Code Ann. §12-6-50 (list of IRC sections not adopted by South Carolina, inc |
| Vermont | Decoupled | 100% | 8.75% | 32 V.S.A. §5811(18)(A), (21)(A) (Vermont net income modified to remove IRS §168(k) d |
| Virginia | Decoupled | 100% | 5.75% | Va. Code §58.1-301 (fixed-date IRC conformity with IRS §168(k) explicit exclusion) |
| Wisconsin | Decoupled | 100% | 7.65% | Wis. Stat. §71.22(4)(k) (IRC as of January 1, 2014 for depreciation) |
| Ohio | Partial Conformity | 83.3% | 2.75% | Ohio Rev. Code §5747.01(A)(20) (5/6 add-back for individuals) |
| North Carolina | Partial Conformity | 85% | 3.99% | N.C. Gen. Stat. §105-153.6 (individual bonus depreciation addition) |
| Minnesota | Partial Conformity | 80% | 9.85% | Minn. Stat. §290.0131 subd. 10 (individual addition) |
| Alabama | Full Conformity | 0% | 5.00% | Ala. Code §40-18-1.1 (rolling IRC conformity) |
| Alaska | Full Conformity | 0% | — | Alaska has no individual income tax (Alaska Const. Art. IX |
| Colorado | Full Conformity | 0% | 4.40% | C.R.S. §39-22-103 (rolling IRC conformity, based on 'internal revenue code' as d |
| Delaware | Full Conformity | 0% | 6.60% | 30 Del. C. §1102 (Delaware taxable income = federal AGI with limited modificatio |
| Florida | Full Conformity | 0% | — | Fla. Const. Art. VII, §5 (no individual income tax). For corporate returns, F.S. |
| Illinois | Full Conformity | 0% | 4.95% | 35 ILCS 5/203(b)(2)(E-10) (bonus depreciation modification does not apply to 100 |
| Kansas | Full Conformity | 0% | 5.58% | K.S.A. §79-32,138 (Kansas taxable income = federal AGI with statutory modificati |
| Louisiana | Full Conformity | 0% | 3.00% | La. R.S. §47:293 (net income = federal AGI with limited state adjustments |
| Michigan | Full Conformity | 0% | 4.25% | MCL §206.607 / §206.30 (Michigan individual income tax base = federal AGI with l |
| Mississippi | Full Conformity | 0% | 4.00% | Miss. Code Ann. §27-7-17 (depreciation conformity, adopted 2023) |
| Missouri | Full Conformity | 0% | 4.70% | Mo. Rev. Stat. §143.011 / §143.121 (Missouri taxable income = federal AGI |
| Montana | Full Conformity | 0% | 5.65% | Mont. Code Ann. §15-30-2101 (IRC by reference, rolling conformity) |
| Nebraska | Full Conformity | 0% | 4.55% | Neb. Rev. Stat. §77-2716 (federal AGI conformity, rolling) |
| Nevada | Full Conformity | 0% | — | Nev. Const. Art. 10 (no individual income tax) |
| New Mexico | Full Conformity | 0% | 5.90% | N.M. Stat. §7-2-2 (IRC by reference, rolling) |
| North Dakota | Full Conformity | 0% | 2.50% | N.D. Cent. Code §57-38-01 (IRC by reference, rolling conformity) |
| Oklahoma | Full Conformity | 0% | 4.50% | 68 O.S. §2353 (Oklahoma taxable income = federal AGI |
| Oregon | Full Conformity | 0% | 9.90% | ORS §316.012 (IRC by reference) |
| South Dakota | Full Conformity | 0% | — | S.D. Const. Art. XI (no income tax authority) |
| Tennessee | Full Conformity | 0% | — | Tenn. Code §67-4-2006 (F&E excise tax decoupling from IRS §168(k) — Notice ET-2) |
| Texas | Full Conformity | 0% | — | Tex. Const. Art. VIII, §24 (no individual income tax) |
| Utah | Full Conformity | 0% | 4.50% | Utah Code §59-10-103 (Utah taxable income = federal taxable income with modifica |
| Washington | Full Conformity | 0% | — | Wash. Const. Art. VII (uniformity clause |
| West Virginia | Full Conformity | 0% | 4.82% | W. Va. Code §11-21-9 (WV taxable income = federal AGI, rolling conformity) |
| Wyoming | Full Conformity | 0% | — | Wyo. Const. Art. 15 (no state income tax) |
What OBBBA changed for state conformity
The One Big Beautiful Bill Act (P.L. 119-21, July 2025) restored 100% federal §168(k) permanently for property placed in service on or after January 19, 2025. Before OBBBA, TCJA was phasing bonus down toward 0% by 2027. That reset didn't automatically flow through to state returns. Three categories emerged:
- Rolling-conformity states that adopt IRC as of "the current version" — Colorado, Ohio, Utah, Kansas, and others — automatically picked up the OBBBA restoration. No state legislation required.
- Static-conformity states that adopt IRC "as of a specific date" — California (currently IRC as of 1/1/2025), Michigan (currently 12/31/2024), Vermont, and others — required new state legislation to move their conformity date past January 19, 2025. Some (California via SB 711 in October 2025) affirmatively excluded OBBBA even while advancing conformity, so they remain decoupled.
- Statutorily excluded states — Idaho, Illinois (partial), South Carolina, and several others — have permanently excluded IRS §168(k) via state statute since the early 2000s. OBBBA didn't move these one bit.
What state non-conformity actually costs an STR investor
On a $150,000 federal §168(k) Year-1 deduction, the state-level Year-1 impact varies from $0 to about $20,000 depending on where the property is:
- Full conformity, no state income tax (Tennessee, Texas, Florida, Nevada, Washington, Wyoming, South Dakota): $0 state impact. Federal savings ~$55.5K at the 37% bracket. Clean story.
- Full conformity with state income tax (Colorado 4.4%, Ohio 3.5%, Kentucky 4.0%, Utah 4.55%, others): full state deduction in Year 1. Additional state savings on top of federal.
- Partial conformity — North Carolina (85% add-back, 4.25% flat): Year-1 state deduction limited to $22,500 ($150K × 15%). State savings ~$956 in Year 1 versus a potential ~$6,375 if fully conforming. Miss: ~$5,419. The added-back $127,500 is recovered over the next 5 years at $25,500/yr.
- Partial conformity — Minnesota (80% add-back, 9.85% top): Year-1 state deduction limited to $30,000. State savings ~$2,955 in Year 1 versus a potential ~$14,775. Miss: ~$11,820. Recovery over 5 years.
- Full decoupling — California (100% add-back, 13.3% top): $0 state deduction in Year 1. Recovery instead over the property's MACRS life (5, 15, or 27.5 years depending on classification). Year-1 state savings miss: ~$19,950 — the largest in the country.
In every case, the federal §168(k) deduction is unaffected. State non-conformity is a state-level cash-flow timing issue — not a federal disqualification, and not something that touches the STR loophole's ability to offset W-2 income at the federal level. See The STR Tax Loophole Explained for the federal mechanism.
Frequently asked questions
What is state conformity to federal §168(k) bonus depreciation?
State conformity determines whether a state's income tax return follows the federal §168(k) bonus depreciation deduction or requires an add-back. Full-conformity states allow the entire federal Year-1 deduction to flow through. Decoupled states require a 100% add-back and recover the deduction over MACRS lives. Partial conformers split the difference.
Which states are decoupled from federal §168(k) in 2026?
As of August 2026 the 24 decoupled states are Arizona, Arkansas, California, Connecticut, Florida (corporations only), Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Wisconsin. Minnesota and North Carolina are partial conformers.
Did OBBBA change state conformity?
OBBBA (P.L. 119-21, July 2025) restored 100% federal §168(k). Rolling-conformity states auto-adopted. Static-conformity states required new legislation — California (SB 711) explicitly excluded OBBBA. Verify each state's current DOR position.
Does state non-conformity kill the STR loophole?
No. The STR loophole is a federal §469 mechanism. State add-back rules affect only state-level Year-1 timing, not whether the federal deduction is available or whether the STR loophole works to offset W-2 income.
How do partial-conformity states (NC, MN) treat bonus depreciation?
North Carolina requires an 85% add-back with a 5-year subtraction schedule (20% per year). Minnesota uses an 80% add-back with the same 5-year subtraction. Both codified in state statute (N.C. Gen. Stat. §105-153.6 and Minn. Stat. §290.0131 subd. 10).
See what your specific property's Year-1 deduction looks like — federal + state
DepreciMax's $99 property report analyzes listing photos and produces a line-item bonus-eligible estimate closely calibrated to a formal cost seg study.