Every state's post-OBBBA conformity to federal IRC §168(k) — cited to the state DOR, dated to today's verification cycle. Pick a state to see the add-back rule, top marginal rate, statute citation, and the actual dollar impact on a federal §168(k) deduction. Verified 2026-08-18 across all 50 states + DC.
As of , 23 US states plus DC are decoupled from federal §168(k) bonus depreciation (Arizona, Arkansas, California, Connecticut, Georgia, Hawaii, Idaho, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, Wisconsin, plus DC and New Hampshire's business profits tax). 25 states conform fully — including all 9 with no individual income tax and 17 with rolling IRC conformity. 3 states are partial conformers: Minnesota (80% add-back), Ohio (83.3%), North Carolina (85%). The federal §168(k) deduction is intact everywhere; only the state layer changes.
Click any state to jump to its 2026 conformity guide, or use the calculator below to see the dollar impact on a federal §168(k) deduction. Hover or focus for the top marginal rate and add-back — verified against state DOR primary sources and OBBBA (P.L. 119-21).
What's an “add-back”? The percentage of the federal §168(k) deduction you must add back to income on your state return. 0% means the state fully conforms — full deduction, no state adjustment. 100% means the state is fully decoupled — you still get the full federal deduction, but the state ignores §168(k) and you recover it over MACRS lives (5, 15, or 27.5 years) on the state return. Partial states (like NC 85%, MN 80%) split the difference.
Sortable ranking of every US jurisdiction's post-OBBBA position. Click a row for the full state profile.
| State | Status | Add-back ⓘ | Top rate | Statute / cite | Verified |
|---|---|---|---|---|---|
| Arizona | Decoupled | 100% | 2.50% | A.R.S. §43-1021 / §43-1022 (subtraction for depreciation com | 2026-08-17 |
| Arkansas | Decoupled | 100% | 3.90% | Ark. Code Ann. §26-51-428 (adopts IRC §§167 and 168(a)-(j) a | 2026-08-17 |
| California | Decoupled | 100% | 13.30% | R&TC §17024.5 (California specified-date conformity, IRC as | 2026-08-17 |
| Connecticut | Decoupled | 100% | 6.99% | Conn. Gen. Stat. §12-701(a)(20)(A)(ix) (PIT add-back) | 2026-08-17 |
| District of Columbia | Decoupled | 100% | 10.75% | D.C. Code §47-1803.03(a)(7)(J) (bonus depreciation decouplin | 2026-08-17 |
| Georgia | Decoupled | 100% | 5.19% | O.C.G.A. §48-7-21(b)(9) (Georgia's IRC conformity does not a | 2026-08-17 |
| Hawaii | Decoupled | 100% | 11.00% | HRS §235-2.4(a) (IRC §168(k) 'shall not be operative for pur | 2026-08-17 |
| Idaho | Decoupled | 100% | 5.30% | Idaho Code §63-3004 (conformity with §168(k) exception) | 2026-08-17 |
| Indiana | Decoupled | 100% | 2.95% | IC 6-3-1-33 (definition of 'bonus depreciation' for add-back | 2026-08-17 |
| Iowa | Decoupled | 100% | 3.80% | Iowa Code §422.7 / §422.35 (IRC conformity date | 2026-08-17 |
| Kentucky | Decoupled | 100% | 3.50% | KRS §141.010 (IRC as of December 31, 2001 for §168) | 2026-08-17 |
| Maine | Decoupled | 100% | 7.15% | 36 M.R.S. §5122(1)(BB) (bonus depreciation addition) | 2026-08-17 |
| Maryland | Decoupled | 100% | 6.50% | Md. Code Ann. Tax-Gen. §10-210.1 (bonus depreciation decoupl | 2026-08-17 |
| Massachusetts | Decoupled | 100% | 9.00% | Mass. Gen. Laws ch. 62, §2(d)(1)(N) | 2026-08-17 |
| New Hampshire | Decoupled | 100% | — | RSA 77-A:3-b, I (BPT decouples from IRC §168(k) and §179) | 2026-08-17 |
| New Jersey | Decoupled | 100% | 10.75% | N.J.S.A. §54:10A-4(k)(1), (k)(2)(F), (k)(12), (k)(13) (CBT d | 2026-08-17 |
| New York | Decoupled | 100% | 10.90% | N.Y. Tax Law §612(b)(8) (PIT addition A-209) | 2026-08-17 |
| Pennsylvania | Decoupled | 100% | 3.07% | 72 P.S. §7401(3)1(r) (CNIT §168(k) decoupling | 2026-08-17 |
| Rhode Island | Decoupled | 100% | 5.99% | R.I. Gen. Laws §44-30-12(b)(9) (PIT §168(k) addback) | 2026-08-17 |
| South Carolina | Decoupled | 100% | 6.00% | S.C. Code Ann. §12-6-50 (list of IRC sections not adopted by | 2026-08-17 |
| Vermont | Decoupled | 100% | 8.75% | 32 V.S.A. §5811(18)(A), (21)(A) (Vermont net income modified | 2026-08-17 |
| Virginia | Decoupled | 100% | 5.75% | Va. Code §58.1-301 (fixed-date IRC conformity with §168(k) e | 2026-08-17 |
| Wisconsin | Decoupled | 100% | 7.65% | Wis. Stat. §71.22(4)(k) (IRC as of January 1, 2014 for depre | 2026-08-17 |
| North Carolina | Partial | 85% | 3.99% | N.C. Gen. Stat. §105-153.6 (individual bonus depreciation ad | 2026-08-17 |
| Ohio | Partial | 83.3% | 2.75% | Ohio Rev. Code §5747.01(A)(20) (5/6 add-back for individuals | 2026-08-18 |
| Minnesota | Partial | 80% | 9.85% | Minn. Stat. §290.0131 subd. 10 (individual addition) | 2026-08-17 |
| Alabama | Full | 0% | 5.00% | Ala. Code §40-18-1.1 (rolling IRC conformity) | 2026-08-17 |
| Alaska | Full | 0% | — | Alaska has no individual income tax (Alaska Const. Art. IX | 2026-08-17 |
| Colorado | Full | 0% | 4.40% | C.R.S. §39-22-103 (rolling IRC conformity, based on 'interna | 2026-08-17 |
| Delaware | Full | 0% | 6.60% | 30 Del. C. §1102 (Delaware taxable income = federal AGI with | 2026-08-17 |
| Florida | Full | 0% | — | Fla. Const. Art. VII, §5 (no individual income tax). For cor | 2026-08-17 |
| Illinois | Full | 0% | 4.95% | 35 ILCS 5/203(b)(2)(E-10) (bonus depreciation modification d | 2026-08-17 |
| Kansas | Full | 0% | 5.58% | K.S.A. §79-32,138 (Kansas taxable income = federal AGI with | 2026-08-17 |
| Louisiana | Full | 0% | 3.00% | La. R.S. §47:293 (net income = federal AGI with limited stat | 2026-08-17 |
| Michigan | Full | 0% | 4.25% | MCL §206.607 / §206.30 (Michigan individual income tax base | 2026-08-17 |
| Mississippi | Full | 0% | 4.00% | Miss. Code Ann. §27-7-17 (depreciation conformity, adopted 2 | 2026-08-17 |
| Missouri | Full | 0% | 4.70% | Mo. Rev. Stat. §143.011 / §143.121 (Missouri taxable income | 2026-08-17 |
| Montana | Full | 0% | 5.65% | Mont. Code Ann. §15-30-2101 (IRC by reference, rolling confo | 2026-08-17 |
| Nebraska | Full | 0% | 4.55% | Neb. Rev. Stat. §77-2716 (federal AGI conformity, rolling) | 2026-08-17 |
| Nevada | Full | 0% | — | Nev. Const. Art. 10 (no individual income tax) | 2026-08-17 |
| New Mexico | Full | 0% | 5.90% | N.M. Stat. §7-2-2 (IRC by reference, rolling) | 2026-08-17 |
| North Dakota | Full | 0% | 2.50% | N.D. Cent. Code §57-38-01 (IRC by reference, rolling conform | 2026-08-17 |
| Oklahoma | Full | 0% | 4.50% | 68 O.S. §2353 (Oklahoma taxable income = federal AGI | 2026-08-17 |
| Oregon | Full | 0% | 9.90% | ORS §316.012 (IRC by reference) | 2026-08-17 |
| South Dakota | Full | 0% | — | S.D. Const. Art. XI (no income tax authority) | 2026-08-17 |
| Tennessee | Full | 0% | — | Tenn. Code §67-4-2006 (F&E excise tax decoupling from §168(k | 2026-08-17 |
| Texas | Full | 0% | — | Tex. Const. Art. VIII, §24 (no individual income tax) | 2026-08-17 |
| Utah | Full | 0% | 4.50% | Utah Code §59-10-103 (Utah taxable income = federal taxable | 2026-08-17 |
| Washington | Full | 0% | — | Wash. Const. Art. VII (uniformity clause | 2026-08-17 |
| West Virginia | Full | 0% | 4.82% | W. Va. Code §11-21-9 (WV taxable income = federal AGI, rolli | 2026-08-17 |
| Wyoming | Full | 0% | — | Wyo. Const. Art. 15 (no state income tax) | 2026-08-17 |
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 (about 25 including all no-income-tax states) allow the entire federal Year-1 deduction to flow through with no state adjustment. Decoupled states (23) require a 100% add-back — investors get the full federal deduction but must add it back on the state return and recover it over MACRS lives. Partial-conformity states (Minnesota 80% add-back, Ohio 83.3% add-back, North Carolina 85% add-back) allow a fraction of the deduction and spread the rest over 5 years.
OBBBA (P.L. 119-21, July 2025) restored 100% federal §168(k) permanently for property placed in service on or after January 19, 2025. State conformity to OBBBA varies materially. Rolling-conformity states (Colorado, Ohio, Utah, Kansas) automatically adopted the change. Static-conformity states (California, Michigan, Vermont) require new state legislation — some (California via SB 711) affirmatively excluded OBBBA and remain decoupled.
On a $150,000 federal §168(k) deduction, an investor in a full-conformity state (Tennessee, Texas, Florida, Nevada — 0% state income tax) captures ~$55,500 in federal savings and no state impact. An investor in California (13.3% top marginal, 100% add-back) captures the same $55,500 federal but misses ~$19,950 in Year-1 state tax savings. The federal deduction is unaffected; only the state timing changes.
No. The STR loophole is a federal §469 mechanism — average guest stay of 7 days or fewer plus material participation lets you deduct rental losses against W-2 income. State add-back rules affect only the state-level Year-1 timing of the deduction, not whether the federal deduction is available. An STR investor in California still captures the full federal §168(k) deduction and the full federal STR loophole benefit.
Free to cite, embed, or link. The underlying data is published as a downloadable JSON so CPAs, journalists, tax software vendors, and researchers can pull the current state of §168(k) conformity into their own workflows.
Public API endpoint (CORS-enabled): https://deprecimax.com/data/state-conformity.json
Substantive per-state pages with statute text, add-back mechanics, top marginal rate, and a worked $750K STR example. Additional states rolling out through Q4 2026 as each hits our verification floor.
Not tax advice. State conformity legislation changes frequently and interacts with entity type, AMT, and net operating loss carryforward rules. The information in this tool is a summary of publicly available state DOR positions as of the verified-as-of date shown. Before acting, verify current rules with the operating state's Department of Revenue and consult a qualified CPA.