Wisconsin uses IRC as of January 1, 2014 for depreciation — IRS §168(k) is not adopted and 100% add-back is required on Schedule I. For side-by-side context, the 50-state §168(k) conformity overview shows how Wisconsin stacks up against every other US jurisdiction.
Modeled on a $150,000 federal §168(k) deduction. Run your own numbers in the Conformity Tool →
Wisconsin STR investors keep the full federal IRS §168(k) deduction but must add back 100% on the state return
Wisconsin's depreciation conformity is fixed at IRC as in effect January 1, 2014, before the most recent IRS §168(k) enhancements. Wisconsin does not adopt IRS §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.
The Wisconsin statute and DOR authority
The bigger picture: §168(k) is one lever in a broader accelerated-depreciation strategy. See our accelerated depreciation explained guide for how MACRS, §168(k), and §179 stack for a real estate investor.
How this compares nationally
Of the 50 US states plus DC, 25 conform fully to federal §168(k), 2 (Minnesota and North Carolina) are partial conformers, and 24 are decoupled. See the full comparison in the 50-state conformity hub, or use the interactive Conformity Tool to compare Wisconsin against any other state at any federal deduction amount.
Analyze a specific Wisconsin property
Run any Wisconsin STR listing through DepreciMax's $99 property report — line-item finish classification, calibrated to a formal cost seg study, includes Wisconsin-specific state impact math.
Frequently asked questions
Does Wisconsin conform to federal §168(k) bonus depreciation in 2026?
Wisconsin is decoupled from federal §168(k) bonus depreciation. Wisconsin uses IRC as of January 1, 2014 for depreciation — IRS §168(k) is not adopted and 100% add-back is required on Schedule I.
What is the Wisconsin bonus depreciation add-back rule?
Wisconsin requires a 100% add-back of the federal §168(k) deduction on the Wisconsin state return. Wisconsin's depreciation conformity is fixed at IRC as in effect January 1, 2014, before the most recent IRS §168(k) enhancements. Wisconsin does not adopt IRS §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.
How much does Wisconsin non-conformity cost a short-term rental investor?
On a $150,000 federal §168(k) deduction with Wisconsin's 7.65% top marginal income tax and 100% state add-back, the Year-1 state tax miss is approximately $11,475. The federal Year-1 deduction of $150,000 is unaffected, producing ~$55,500 in federal Year-1 savings at the 37% federal bracket regardless of state.
Does Wisconsin non-conformity kill the short-term rental loophole?
No. The STR loophole is a federal §469 mechanism. Wisconsin's add-back rule only changes state-level Year-1 timing. The federal deduction and the federal STR loophole benefit are unaffected — an investor in Wisconsin still captures the full federal Year-1 bonus depreciation deduction and can still offset W-2 income at the federal level.
Every state's §168(k) position, in one place
Interactive map, sortable table, and deep-dive guide for each of the 51 jurisdictions — post-OBBBA verified.
See the 50-state map →