Reference
State bonus depreciation conformity, 2025 and 2026
The label is a reading aid. The sentence under it is the rule the connector returns. “Not verified” means the cited page did not state the figure. “Verify with the source” means a golden check left that wording unconfirmed.
Informational. Not tax advice.
Last verified October 24, 2026.
2026
| State | IRC 168(k) | Section 179 | IRC date |
|---|---|---|---|
| California CA | Decouples California does not conform to IRC 168(k) or IRC 168(n). The 2025 Forms 3885 and 3885A say to compute California depreciation without the 168(k) deduction, and no later conformity bill was posted as of August 25, 2026. Report the federal-state difference on Form 3885 or Form 3885A. Do not claim the federal 168(k) deduction for California. | The 2025 Forms 3885 and 3885A state a California maximum IRC 179 expense of $25,000, reduced when section 179 property placed in service exceeds $200,000. The August 25, 2026 conformity page does not show a later bill adopting the federal increase. | January 1, 2025. No later conformity date was posted on the Franchise Tax Board conformity page as of its August 25, 2026 update. |
| Florida FL | Corporate tax only Chapter 220 uses IRC 168(k) as in effect on January 1, 2025. Section 220.13(1)(e) still adds back bonus depreciation for assets placed in service before January 1, 2027, and subtracts one-seventh of the addition each year beginning in the year of the addition. A chapter 220 taxpayer recomputes federal taxable income using the January 1, 2026 Code with the frozen sections, adds back pre-2027 IRC 168(k) bonus depreciation, and subtracts one-seventh of that addition annually. Attach the pro forma federal return to Form F-1120. | For chapter 220, IRC 179 is included only as amended and in effect on January 1, 2025, without the One Big Beautiful Bill Act amendments. | Chapter 2026-137 adopts the Internal Revenue Code for chapter 220 retroactively to January 1, 2026, except that IRC 168(k), 174(a), 163(j), 274, and 179 are included only as amended and in effect on January 1, 2025. IRC 168(n) and 174A are not in the definition of the Internal Revenue Code. There is no individual conformity date. |
| Georgia GA | Decouples Georgia decouples from IRC 168(k) and from IRC 168(n). Line-level add-back math is not stated. | TCJA treatment of the section 179 limitation continues, with an exception for real property. Dollar caps are not stated. | Internal Revenue Code enacted on or before January 1, 2026, for taxable years beginning on or after January 1, 2025, under HB 1199 section 1, effective March 20, 2026. |
| Illinois IL | Not verified Not verified. FY 2026-15 does not state an Illinois add-back percentage for IRC 168(k). It points taxpayers to Form IL-4562. The percentage is not in this file. The bulletin's 168(n) rule is a different provision and is stated in mechanics. For a tax year beginning on or after January 1, 2026, Public Act 104-0453 decouples from the federal 100 percent allowance under IRC 168(n), not IRC 168(k). Use Form IL-4562, line 16, to include the depreciation that would have been claimed had the federal bonus election not been made. | Not verified. IRC 179 treatment for 2026 was not verified. No dollar limit is stated. | Not verified. An Illinois IRC conformity date was not verified. None is stated. |
| Massachusetts MA | Not verified Not verified. IRC 168(k) treatment for 2026 was not verified from a current form or notice. No add-back is stated. | Not verified. IRC 179 limits for 2026 were not verified. No dollar amount is stated. | Not verified. The 2026 IRC conformity date was not verified. None is stated. |
| Michigan MI | See cited text Individual income tax and the flow-through entity tax use IRC 168(k) as of December 31, 2024. The 2026 additional-allowance percentage is not stated in the notice. The addition is federal depreciation under the Act minus depreciation allowed under the December 31, 2024 version of the decoupled provisions. Later years deduct the depreciation pre-Act law would have allowed. | For a tax year beginning after December 31, 2024, including 2026, use IRC 179 as of December 31, 2024. | Michigan generally uses the Internal Revenue Code currently in effect, then decouples by statute. For the provisions below, the decoupling date is December 31, 2024, for tax years beginning after that date, which includes 2026. |
| North Carolina NC | Not verified Not verified. The Department's bonus-depreciation page says its operative instructions apply to individuals for tax year 2025 unless otherwise noted. It does not state the 2026 rule. No 2026 percentage is stated. | Not verified. IRC 179 treatment for 2026 was not verified. No dollar limit is stated. | Not verified. G.S. 105-228.90 was not fetched. No 2026 conformity date is stated. |
| New Jersey NJ | Not verified Not verified. IRC 168(k) conformity for 2026 was not verified. No percentage is stated. | Not verified. IRC 179 treatment for 2026 was not verified. No dollar amount is stated. | Not verified. New Jersey's IRC conformity date for 2026 was not verified. None is stated. |
| New York NY | Partially conforms New York requires a state modification for IRC 168(k) property on Form IT-398. The 168(k) arithmetic was not copied from the form instructions and is not stated. Add back the full federal IRC 168(n) deduction and subtract depreciation under IRC 167 computed as if the 168(n) election had not been made. | Not verified. IRC 179 treatment for 2026 was not verified. No dollar limit is stated. | Not verified. A New York IRC conformity date was not verified. None is stated. |
| Texas TX | No individual income tax Not applicable to an individual income tax. Not applicable to individual income tax. | Not verified. Franchise-tax treatment of IRC 179 was not reviewed. There is no individual income-tax amount to state. | Not applicable. Texas has no individual income tax. |
2025
| State | IRC 168(k) | Section 179 | IRC date |
|---|---|---|---|
| California CA | Decouples California does not conform to IRC 168(k) or to IRC 168(n). Compute California depreciation without the 168(k) deduction. Report the federal-state depreciation difference on Form 3885 or Form 3885A. Additional depreciation under IRC 168(k) is a listed difference on Form 3885A. | The California maximum IRC 179 expense is $25,000, reduced when the cost of all section 179 property placed in service exceeds $200,000. | January 1, 2025, for taxable years beginning on or after January 1, 2025. |
| Florida FL | Corporate tax only Chapter 220 only: section 220.13(1)(e) requires an addition equal to bonus depreciation deducted under IRC 168(k) for assets placed in service before January 1, 2027. The addition is recovered by subtracting one-seventh each year, beginning in the year of the addition. A chapter 220 taxpayer adds back IRC 168(k) bonus depreciation on assets placed in service before January 1, 2027, and subtracts one-seventh of that addition each year beginning in the year of the addition. | TIP 25C01-01 does not state a separate section 179 add-back. Chapter 220 adopts the Internal Revenue Code as of January 1, 2025, and the publication says it does not address the July 4, 2025 act. | For chapter 220 corporate income tax, chapter 2025-208 adopts the Internal Revenue Code retroactively to January 1, 2025. There is no individual income tax, so there is no individual conformity date. |
| Georgia GA | Decouples Georgia decouples from IRC 168(k). HB 1199 keeps that exception and adds an exception for IRC 168(n). | Georgia maintains TCJA treatment of the section 179 limitation, with an exception for real property. Dollar caps are not stated. | As of the March 20, 2026 effective date of HB 1199, section 1, Georgia incorporates the Internal Revenue Code enacted on or before January 1, 2026, for taxable years beginning on or after January 1, 2025, with the exceptions below. |
| Illinois IL | Not verified Not verified. FY 2026-15 restates the federal 100 percent allowance for property acquired and placed in service after January 19, 2025, including a transitional 40 percent election (60 percent for longer-production property) for the first taxable year ending after that date, and says Form IL-4562 instructions were updated. It does not state an Illinois add-back percentage for IRC 168(k). That percentage is not in this file. FY 2026-15 describes an IRC 168(n) decoupling for tax years beginning on or after January 1, 2026. It does not apply that decoupling to 2025. This file does not state a 2025 add-back computation. | Not verified. Illinois IRC 179 treatment for 2025 was not verified. No dollar limit is stated. | Not verified. An Illinois IRC conformity date was not verified. None is stated. |
| Massachusetts MA | Not verified Not verified. Current 2025 form instructions stating the IRC 168(k) adjustment were not verified. No percentage or add-back is stated. | Not verified. IRC 179 limits for 2025 were not verified. No dollar amount is stated. | Not verified. The Massachusetts IRC conformity date for 2025 was not verified from a current source. None is stated. |
| Michigan MI | Partially conforms Individual income tax and the flow-through entity tax use IRC 168(k) as of December 31, 2024. For 2025 that additional allowance is 40 percent. For 2025, individuals report the adjustment on MI-1040 Schedule 1, line 8. A flow-through entity reports it on Form 5772, line 11, and reports each member's share of the decoupling adjustments. | For a tax year beginning after December 31, 2024, use IRC 179 as of December 31, 2024. The notice states pre-Act inflation-adjusted limits of $1.25 million and $3.13 million, against the Act's $2.5 million and $4 million. | Michigan generally uses the Internal Revenue Code currently in effect, then decouples by statute. The bonus and section 179 decoupling date in the Treasury notice is December 31, 2024. |
| North Carolina NC | Partially conforms For tax year 2025, North Carolina did not adopt IRC 168(k) or IRC 168(n) for property placed in service during the year. Add 85 percent of the federal bonus depreciation to the state return. Add 85 percent of 2025 federal bonus depreciation. Recover that add-back by deducting 20 percent of it in each of the first five taxable years beginning with 2026. | Not verified. IRC 179 treatment for 2025 was not verified. No dollar limit is stated. | Not verified. The Code definition in G.S. 105-228.90 was not fetched. No conformity date is stated. |
| New Jersey NJ | Not verified Not verified. Whether New Jersey conforms to or decouples from IRC 168(k) for 2025 was not verified. No percentage is stated. | Not verified. New Jersey's IRC 179 limit for 2025 was not verified. No dollar amount is stated. | Not verified. New Jersey's IRC conformity date for 2025 was not verified from an official page in this review. None is stated. |
| New York NY | Partially conforms New York requires a state modification for IRC 168(k) property. Notice N-26-1 tells taxpayers to compute the IRC 168(n) modification on Form IT-398, which the Department uses as the depreciation schedule for IRC 168(k) property. For a tax year beginning on or after January 1, 2025, New York does not conform to IRC 168(n). Add back the full federal 168(n) deduction and subtract depreciation computed under IRC 167 as if the 168(n) election had not been made. | Not verified. New York's treatment of IRC 179 for 2025 was not verified. No dollar limit is stated. | Not verified. A New York IRC conformity date was not verified from the pages reviewed. None is stated here. |
| Texas TX | No individual income tax Not applicable to an individual income tax. Texas has no individual income tax. Not applicable to individual income tax. | Not verified. Franchise-tax depreciation, including any margin-tax treatment of IRC 179, was not reviewed. There is no individual income-tax section 179 rule to state. | Not applicable. Texas has no individual income tax. |