Bonus Depreciation by State; Conformity Reference Table (2026).
100% federal §168(k) bonus depreciation is permanent under OBBBA. ~38 states inherit it via rolling IRC conformity; ~10 states decouple and require an add-back; the rest have no state income tax. Categorical reference, not a per-state rate sheet; confirm current-year treatment with your CPA.
Reviewed by Cost Seg Smart Editorial Team · Last reviewed: · 50 states + DC · 51 rows
The four conformity buckets
Every state's treatment of §168(k) bonus depreciation sits in one of four buckets. The table below uses these categories; not a "% of federal bonus allowed" column, which ages out every legislative session.
The 50-state conformity table
Filter to narrow. Source column links to each state's authoritative tax authority.
| State | Treatment | Primary citation | Source |
|---|---|---|---|
| Alabamaguide → (AL) | Conforms by rolling reference. Individual depreciation is allowed in accordance with 26 U.S.C. §§167 and 168 with no date qualifier and no bonus carve-out; corporate taxable income starts from federal taxable income | Ala. Code §40-18-1.1(b); §40-18-15(8) (individual); §40-18-33 (corporate) | DOR → |
| Alaskaguide → (AK) | No individual income tax at all. The CORPORATE net income tax conforms by rolling reference, and no §168(k) exception appears among its carve-outs | AS 43.20.012(a)(1) (no individual tax); AS 43.20.021(a) (IRC adopted by reference) | DOR → |
| Arizonaguide → (AZ) | Conforms in effect for assets placed in service in tax years beginning after December 31, 2016. Arizona adds back the federal depreciation allowance and then subtracts an Arizona-recalculated amount computed as if bonus depreciation had been the full 100% of the federal §168(k) allowance, so the net Arizona deduction matches the federal one | A.R.S. §43-1021(11) (add-back); A.R.S. §43-1022(17)(e) (subtraction); A.R.S. §43-1122 (corporate) | DOR → |
| Arkansasguide → (AR) | Decoupled. Arkansas adopts IRC §§167 and 168(a)-(j) as in effect 2019-01-01 and pointedly excludes subsection (k) — bonus depreciation is not allowed | Ark. Code Ann. §26-51-428 | DOR → |
| Californiaguide → (CA) | Decoupled. For the personal income tax the statute is explicit that §168(k) shall not apply, so no bonus depreciation is allowed and regular California depreciation is used instead §179 capped at $25K | R&TC §17250(a)(4) (personal); general conformity date at R&TC §17024.5 | DOR → |
| Coloradoguide → (CO) | Conforms by rolling reference to the federal Internal Revenue Code. The list of additions to federal taxable income carries no §168(k) bonus-depreciation add-back, so the federal bonus flows through to the Colorado return | Colo. Rev. Stat. §39-22-104(3) (additions; no §168(k) item) | DOR → |
| Connecticutguide → (CT) | Decoupled for the personal income tax. The whole §168(k) allowance is added back for property placed in service after 2017-09-27, then returned at 25% in each of the four succeeding tax years | Conn. Gen. Stat. §12-701(a)(20)(A)(ix) (addition); §12-701(a)(20)(B)(v) (subtraction) | DOR → |
| Delawareguide → (DE) | Decoupled by a 2025 amendment aimed squarely at OBBBA. Base conformity is rolling, but Delaware now overrides §70301 of P.L. 119-21 and continues pre-OBBBA depreciation for affected property through 2030 | 30 Del. C. §1106(d) (personal); §1903(d)(2) (corporate); both amended by 85 Del. Laws c. 231 (2025) | DOR → |
| Floridaguide → (FL) | No state personal income tax. The corporate income tax decouples: 100% of the federal bonus is added back, then one-seventh is subtracted in the year of the add-back and in each of the six following years | Fla. Const. art. VII, §5; Fla. Stat. §220.13(1)(e) | DOR → |
| Georgiaguide → (GA) | Decoupled outright. Georgia adopts the Internal Revenue Code as of a fixed date but treats §168(k) as if it were not in effect, so depreciation is computed as though bonus depreciation never existed | O.C.G.A. §48-1-2(14) | DOR → |
| Hawaiiguide → (HI) | Decoupled by name. IRC §168 is operative for Hawaii EXCEPT §168(k), which the statute states shall not be operative — so there is no bonus depreciation to claim, and nothing to add back either | Haw. Rev. Stat. §235-2.4(m) | DOR → |
| Idahoguide → (ID) | Conforms, via a fixed conformity date the legislature re-sets each session — currently the Code as amended and in effect 2026-01-01, with no exception for §168(k) | Idaho Code §63-3004 | DOR → |
| Illinoisguide → (IL) | Decoupled. 100% of the federal bonus deduction is added back in the year taken, then recovered ratably in later years by a formula keyed to the bonus percentage originally claimed | 35 ILCS 5/203(a)(2)(D-15) addition; 203(a)(2)(Z) recovery | DOR → |
| Indianaguide → (IN) | Decoupled since 2002 from BOTH §168(k) bonus and §179 expensing; first-year add-back, recovered by negative adjustments in later years | IC 6-3-1-3.5; IC 6-3-1-33; IC 6-3-2-29 | DOR → |
| Iowaguide → (IA) | Conforms for property placed in service on or after 2023-01-01 — the bonus-depreciation add-back subsections were REPEALED retroactively to that date. Rolling IRC conformity since tax years beginning 2020-01-01 | Iowa Code §422.3(5) (conformity); §422.7 and §422.35 (repealed add-backs) | DOR → |
| Kansasguide → (KS) | Conforms by rolling reference. Neither the individual nor the corporate modification list contains a §168(k) add-back | K.S.A. 79-32,109 (IRC definition); 79-32,117 (individual); 79-32,138 (corporate) | DOR → |
| Kentuckyguide → (KY) | Decoupled completely. Depreciation under §168 is frozen at the Code in effect 2001-12-31 — a date that PREDATES federal bonus depreciation — so no bonus has ever been allowable for Kentucky | KRS 141.0101(16)(a) | DOR → |
| Louisianaguide → (LA) | Corporate conforms by rolling IRC reference with no §168(k) add-back. INDIVIDUALS CHANGED FOR 2025: bonus is no longer an automatic pass-through — it is now an elective Louisiana deduction under §47:297.25 with its own recapture | La. R.S. §47:287.71 (corporate modifications); §47:293 and §47:297.25 (individual) | DOR → |
| Maineguide → (ME) | Decoupled. The full §168(k) deduction is added back, then recovered over later years as a ratable subtraction capped at the original addition | 36 M.R.S. §5122(1)(KK) and §5122(2)(RR) (individual); §5200-A(1)(CC) and (2)(FF) (corporate) | DOR → |
| Marylandguide → (MD) | Decoupled. Depreciation is recomputed without regard to the additional allowance under §168(k) — EXCEPT for property placed in service by a manufacturing entity on or after 2019-01-01, which keeps federal bonus | Md. Code Ann., Tax-Gen §10-210.1 | DOR → |
| Massachusettsguide → (MA) | Decoupled for BOTH the personal income tax and the corporate excise, with identical wording: the deduction allowed by §168(k) is simply not allowed. Regular MACRS applies without bonus | M.G.L. ch. 62, §2(d)(1)(N) (personal); M.G.L. ch. 63, §30, para. 4(iv) (corporate excise) | DOR → |
| Michiganguide → (MI) | DECOUPLED, and differently for each taxpayer type. Corporations get NO §168(k) bonus at all. Individuals are frozen at §168(k) as in effect 2024-12-31, which is the pre-OBBBA phase-down rate, not 100% | MCL 206.607(1)(a)-(b) (corporate); MCL 206.30(1)(ff) (individual) | DOR → |
| Minnesotaguide → (MN) | Decoupled. 80% of the federal §168(k) deduction is added back in year one; the delayed amount returns as a one-fifth subtraction in each of the next five tax years | Minn. Stat. §290.0131 subd. 9 (addition); §290.0132 subd. 9 (subtraction) | DOR → |
| Mississippiguide → (MS) | Grants its OWN 100% bonus depreciation by state law, notwithstanding any change to federal law. Mississippi does not track federal phase-downs or phase-ups — the 100% is a state guarantee, elected in lieu of ordinary MACRS | Miss. Code Ann. §27-7-17(1)(f)(ii)(2), as amended by H.B. 1733 (2023) | DOR → |
| Missouriguide → (MO) | Conforms for current bonus depreciation. The §168 add-back in §143.121 is a historical provision limited to property purchased 2002-07-01 to 2003-06-30 and does not reach property placed in service today | Mo. Rev. Stat. §143.121.2(3) | DOR → |
| Montanaguide → (MT) | Conforms. Montana taxable income starts from federal taxable income and the adjustments list carries no bonus add-back; corporate law requires depreciation elections to match the federal return | Mont. Code Ann. §15-30-2101(22) and §15-30-2120 (individual); §15-31-114(1)(b)(i) (corporate) | DOR → |
| Nebraskaguide → (NE) | Conforms by rolling reference. The bonus add-back on the books is a 2001-2005 stimulus-era provision whose recovery cycle finished by 2010 and which has no bearing on current property | Neb. Rev. Stat. §77-2714 (rolling conformity); §77-2716(9)-(10) (expired historical add-backs) | DOR → |
| Nevadaguide → (NV) | No personal or corporate income tax. The Commerce Tax reaches businesses whose Nevada GROSS REVENUE exceeds $4,000,000 in a fiscal year — gross revenue, not net income, so depreciation does not reduce it | Nev. Const. art. 10; NRS 363C (Commerce Tax) | DOR → |
| New Hampshireguide → (NH) | Total, unconditional decoupling for the Business Profits Tax: the statute directs that the IRC "shall be applied without section 168(k)". No add-back schedule, no later recovery — the deduction simply never exists for BPT | RSA 77-A:3-b(I); RSA 77-A:1, XX(d) (IRC date 2018-12-31) | DOR → |
| New Jerseyguide → (NJ) | Decoupled for BOTH taxes. New Jersey has decoupled from federal §168(k) bonus depreciation and §179 expensing; an adjustment is required for the Gross Income Tax and for the Corporation Business Tax | N.J.S.A. §54:10A-4(k)(12) and (k)(13) (CBT); N.J.S.A. §54A:5-1 with Form GIT-DEP (GIT) | DOR → |
| New Mexico (NM) | UNVERIFIED. Our table says rolling conformity with no add-back, and general tax literature agrees, but no primary source could be reached to confirm it | N.M. Stat. Ann. §7-2-2 (unverified) | DOR → |
| New Yorkguide → (NY) | Decoupled for both the personal income tax and the Article 9-A corporate tax, by the same mechanism: add back the federal depreciation on §168(k) property, then deduct a New York amount computed as if the property had been acquired on September 10, 2001, before bonus depreciation existed NYC has separate UBT add-back. Qualified Resurgence Zone property in Lower Manhattan and New York Liberty Zone property are carved out and DO keep the federal bonus for New York purposes. | N.Y. Tax Law §612(b)(8) and §612(k)-(m) (personal); §208(9) (corporate) | DOR → |
| North Carolinaguide → (NC) | Partial conformity. 85% of the federal §168(k) bonus is added back, leaving 15% allowed in Year 1, and the add-back is then deducted at 20% per year across the following five tax years | N.C. Gen. Stat. §105-130.5B (corporate); §105-153.6 (individual) | DOR → |
| North Dakotaguide → (ND) | Conforms by rolling reference, with no depreciation or §168(k) item anywhere in the corporate adjustments list | N.D. Cent. Code §57-38-01(5); §57-38-01.1 (intent); §57-38-01.3 (corporate adjustments) | DOR → |
| Ohioguide → (OH) | Decoupled in part: add back five-sixths of the §168(k) deduction, then deduct one-fifth of that amount in each of the five succeeding tax years | Ohio Rev. Code §5747.01(A)(17) (addition) and (A)(18) (recovery) | DOR → |
| Oklahomaguide → (OK) | Effectively 100% expensing, but through Oklahoma OWN elective regime rather than federal pass-through. §2358.6a grants a state-law 100% deduction insulated from federal phase-downs, with an anti-double-dip add-back | 68 O.S. §2358.6a (current); §2353 (general rolling IRC conformity) | DOR → |
| Oregon (OR) | Conforms on the plain statutory text. The general federal-reference date is fixed, but the definition of taxable income is carved out to use the Code as applicable to the taxpayer tax year, and the old §168(k) add-back expired by its own terms after 2010 | ORS 316.012 and 316.739 (personal); ORS 317.010(7) and 317.301 (corporate) | DOR → |
| Pennsylvaniaguide → (PA) | Decoupled for the corporate net income tax: 100% of the federal §168(k) bonus is added back. How it comes back depends on when the property was placed in service, and for property placed in service after September 27, 2017 it is recovered only on sale or other disposition Rental income reported on PA Schedule E uses cost recovery; verify with PA DOR | 72 P.S. §7401(3)1(q) (add-back); §7401(3)1(r) (recovery), as amended by Act 72 of 2018 | DOR → |
| Rhode Islandguide → (RI) | Decoupled permanently and prospectively: bonus depreciation under the 2002 and 2003 federal acts "or any subsequent federal enactment" is not allowed for Rhode Island purposes | R.I. Gen. Laws §44-61-1 | DOR → |
| South Carolinaguide → (SC) | DECOUPLED, not conforming. S.C. Code §12-6-50 lists §168(k) among the Internal Revenue Code sections "specifically not adopted by this State", naming it as bonus depreciation | S.C. Code §12-6-50(4); §12-6-40 (IRC conformity date) | DOR → |
| South Dakotaguide → (SD) | No general personal or corporate income tax. The one income-based tax is the Bank Franchise Tax, and it reaches financial institutions only | S.D. Const. art. 11; SDCL 10-43 (bank franchise tax) | DOR → |
| Tennesseeguide → (TN) | No state personal income tax on wages or rental income; the Hall tax on interest and dividends was fully repealed effective 2021. The separate excise tax on business entities decouples, recomputing depreciation under §168 as it stood before the Job Creation and Worker Assistance Act of 2002 Franchise & Excise Tax applies to entities | Tenn. Code §67-1-101; §67-4-2006(b)(1)(H) and (b)(2)(I) | DOR → |
| Texasguide → (TX) | No personal income tax. The separate franchise (margin) tax is not an income tax and makes no §168(k) adjustment; depreciation enters it only for entities that sell goods and elect the cost-of-goods-sold subtraction, and then exactly as reported federally | Tex. Const. art. VIII, §24; Tex. Tax Code §171.1012(c)(6) | DOR → |
| Utahguide → (UT) | Conforms by rolling reference for both individual and corporate tax; no §168(k) add-back exists in the additions and subtractions statute | Utah Code §59-10-103(2)(b) and §59-10-114 (individual); §59-7-101(22) (corporate) | DOR → |
| Vermontguide → (VT) | Decoupled, and written into the definition of taxable income itself: both the individual and corporate definitions compute income WITHOUT REGARD TO 26 U.S.C. §168(k) | 32 V.S.A. §5811(21) (individual); §5811(18)(A) (corporate) | DOR → |
| Virginiaguide → (VA) | Decoupled by an explicit carve-out from fixed-date conformity. Virginia conforms to the Internal Revenue Code as it stood on December 31, 2025, except for the special depreciation allowance under §168(k), (l), (m) and (n), which it does not adopt | Va. Code §58.1-301(B)(1) | DOR → |
| Washingtonguide → (WA) | No state personal or corporate income tax today; B&O is a gross-receipts tax that allows no expense deductions. A 9.9% income tax on AGI over $1M begins 2028-01-01 | Wash. Const. art. VII; SB 6346 (2026) | DOR → |
| West Virginiaguide → (WV) | Conforms today. The conformity cutoff is static but rolled forward each session, and as codified it recognises federal changes through 2025-12-31 — after OBBBA — so the restored 100% bonus is picked up | W. Va. Code §11-21-9(a) (personal); §11-24-3(a) (corporate) | DOR → |
| Wisconsinguide → (WI) | Depreciation is frozen at the IRC in effect 2014-01-01, with a hand-picked list of later federal provisions imported by name. Bonus depreciation follows only what that list adopts | Wis. Stat. §71.98(3) — Internal Revenue Code update: depreciation, depletion, and amortization | DOR → |
| Wyomingguide → (WY) | No personal or corporate income tax. The Department of Revenue administers only Excise, Mineral, Property and Liquor — there is no income tax division at all | Wyo. Const. art. 15 | DOR → |
| District of Columbiaguide → (DC) | Decoupled for businesses: no deduction is allowed for the special depreciation allowance under §168(k), nor under §168(n). The bar sits in the business deductions section | D.C. Code §47-1803.03(a)(7)(B)(i) and (iii) | DOR → |
Sources: each row's "DOR →" link goes to the cited state's official tax authority. Statute citations are pin-cites to the primary state code where available; verify the cited section is current before filing. Last reviewed: May 12, 2026. State conformity rules change annually; always confirm with your CPA and state DOR.
What "decoupled" actually changes
Decoupling does not deny the deduction. It defers the deduction across the asset's MACRS recovery period instead of allowing it all in Year 1. Two parallel depreciation books are maintained; a federal book that uses 100% bonus and a state book that uses standard MACRS without bonus.
In Year 1, the federal-state delta produces an income addition on the state return (you're undoing the federal bonus for state purposes). In years 2 through 16, as the state-side MACRS schedule recovers basis, those amounts produce subtraction adjustments. Total lifetime depreciation is identical on both books; it's a timing difference.
For the federal-rule layer; the actual §168(k) statute, recovery periods, and qualifying-property tests; see the federal §168(k) rule reference at irsdepreciationrules.com.
Worked example: same $750K residential property, three states
An illustrative reclassification at the representative rate we publish for single-family rentals (16%, inside the 9–32% band), 20% land allocation, 37% federal bracket, 100% bonus depreciation in Year 1. The federal column is identical for all three states; only the state book differs.
| Line item | Texas (no PIT) | Alabama (conforming) | California (decoupled) |
|---|---|---|---|
| Purchase price | $750,000 | $750,000 | $750,000 |
| Depreciable basis (after 20% land) | $600,000 | $600,000 | $600,000 |
| Reclassified basis (illustrative 16% SFR) | $96,000 | $96,000 | $96,000 |
| Federal Year-1 deduction (100% bonus) | $96,000 | $96,000 | $96,000 |
| State Year-1 deduction (reclassified basis) | N/A | $96,000 (100% bonus flows) | ~$10,900 (MACRS, no bonus) |
| Federal Year-1 tax savings (37%) | ~$38,900 | ~$38,900 | ~$38,900 |
| State Year-1 tax savings | $0 | ~$4,800 (5%) | ~$1,000 (9.3% on $10,900) |
The decoupled-state Year-1 hit is smaller than it looks. In California's case, the deferred ~$7,900 of Year-1 state benefit recovers over years 2 through 16 as the state-side MACRS schedule depreciates the same $96,000 of basis. Total lifetime state deduction matches the federal deduction; only the timing differs.
CPA workflow for a non-conforming-state property
If your property is in a decoupled state, your CPA's workflow has five touch points beyond the standard federal Form 4562:
- Identify the state's bucket; rolling, static, decoupled, or no-tax. Use the table above as a starting point; confirm with the state DOR.
- Obtain the state's depreciation adjustment form; California uses FTB 3885A; New Jersey uses GIT-DEP; New York uses IT-225; Minnesota and North Carolina use state-specific schedules attached to their respective income tax returns.
- Compute parallel state basis for each cost-segregated component. Federal and state asset basis diverge from Year 1 forward; the state book carries higher basis because it didn't take the bonus.
- Track basis separately through disposition. At sale, recapture is computed on the federal book; the state book produces its own recapture amount, generally a different (smaller) number. The two reconcile through the §1250/§1245 calculation on the state return.
- Confirm passive-activity treatment is state-conforming. §469 passive-loss rules generally flow through to state returns unchanged, but a few states modify the application; verify your state's specific position.
For California specifically, see the California bonus depreciation guide for the full FTB 3885A workflow and Schedule CA Part I Section B mechanics.
Edge cases and recent changes
Selective non-conformity. Some states (e.g., Minnesota, North Carolina) decouple with a partial add-back; 80% in Minnesota's case, 85% in North Carolina's; rather than a full 100% add-back. The mechanics are the same as full decoupling, but the deferred amount is smaller.
PIT vs. corporate divergence. Several states decouple at the personal income tax level but conform (or partially conform) at the corporate income tax level. Connecticut, Massachusetts, and New Jersey are the most common examples. The treatment depends on which return your rental is filed against; Schedule E on individual return vs. corporate return.
Recent conformity legislation. Several states have considered updating their conformity in 2024-2025 legislative sessions; a few have moved the static conformity date without addressing §168(k) specifically. The table above reflects positions as of May 12, 2026; states with active budget bills should be verified directly with the cited DOR.
OBBBA didn't change state conformity. The One Big Beautiful Bill Act is a federal statute. It made 100% bonus depreciation permanent at the federal level, but it does not preempt state tax law. Conformity states gain permanent flow-through of 100% bonus; decoupled states continue their add-back rules unchanged unless their legislature acts.
Frequently asked
Which states do not conform to bonus depreciation?
As of May 2026, the states with active decoupling from federal §168(k) bonus depreciation include California, New York, New Jersey, Connecticut, Hawaii, Massachusetts (PIT), Maine (partial via capital investment credit), Maryland, Minnesota (80% add-back), New Hampshire (BPT), North Carolina (85% add-back), Pennsylvania (PIT; separate treatment), Rhode Island, Wisconsin, Arkansas (historically), Indiana, Kentucky, and the District of Columbia. State rules change annually; verify your state's current-year position with the cited DOR before filing.
Do I have to add back federal bonus depreciation on my state return?
Only in states that have decoupled from §168(k). In a rolling-conformity state, the federal §168(k) deduction flows through to your state return without adjustment. In a decoupled state, your CPA files an add-back on the state return in Year 1 (e.g., California Schedule CA Part I Section B; New York IT-225; New Jersey Schedule A) and then takes subtraction adjustments in later years as the asset depreciates on the state's MACRS schedule. The total lifetime deduction is the same; decoupling defers it across the asset's recovery period.
What states allow 100% bonus depreciation?
All states with rolling IRC conformity that have not specifically decoupled from §168(k) allow the federal 100% bonus deduction permanently reinstated by the One Big Beautiful Bill Act (OBBBA, signed July 2025). That includes most southern, midwestern, and mountain-west states; Alabama, Arizona, Colorado, Florida (no PIT), Illinois, Louisiana, Michigan, Missouri, Texas (no PIT), and roughly 35 others. The decoupled list above is what to verify; the default assumption for any state not on that list is rolling conformity.
Did the OBBBA change state conformity?
No. OBBBA is a federal statute. State conformity is governed by each state's own tax code and is not changed by federal legislation. What OBBBA did is make 100% bonus depreciation permanent at the federal level, which means rolling-conformity states will continue to flow 100% bonus through to their returns automatically, while decoupled states will continue to require add-backs. Several decoupled states have considered updating their conformity in 2024-2025 legislative sessions; check your state's most recent budget bill.
How does state non-conformity affect a cost segregation study?
Not at all on the engineering side; the same reclassification of basis into 5/7/15-year MACRS categories applies regardless of state. Where state non-conformity affects you is bookkeeping: your CPA maintains two depreciation schedules (federal and state), and asset basis tracks differently from Year 1 forward. The deferred state-side benefit is real but small relative to the federal benefit. Cost segregation in a non-conforming state remains a strong financial decision in nearly every case where it's a strong decision in a conforming state.
Why don't all states follow federal bonus depreciation rules?
Revenue. Federal bonus depreciation is a timing benefit that materially accelerates corporate and individual tax deductions. States that decouple do so because they don't want to give up the Year-1 revenue. California, in particular, has never conformed to §168(k); not under TCJA, CARES Act, or OBBBA; because the policy stance has consistently been to preserve state revenue from federal acceleration programs. The deduction is not denied; it is recovered over the asset's MACRS life.
Where can I find my state's official position on bonus depreciation?
Each state's Department of Revenue publishes a guidance document or income tax instruction that addresses federal §168(k) conformity. The Source column in the table above links to each state's DOR. The most authoritative state-by-state resource outside of primary statutes is the Bloomberg Tax 50-state survey (subscription) and the AICPA state conformity tracker. Always confirm current-year treatment with your CPA before filing; secondhand summaries (including this page) can age out by the next legislative session.
Is this table current?
This table was last reviewed on May 12, 2026 and reflects state conformity positions known as of that date. State rules change yearly, sometimes retroactively. Cost Seg Smart reviews this page annually and after any major federal change. For any state with an active legislative session, verify with the cited DOR or your CPA before relying on this table for filing decisions.
Where to go next; primary sources
Researching the federal rule layer: the §168(k) statute, qualifying-property tests, and recovery-period mechanics live at irsdepreciationrules.com; the federal §168(k) rule reference. State conformity tables sit on top of that rule layer; the rule layer is what actually governs federal treatment.
Deep-diving a specific state: we maintain extended guides for the three largest decoupled states; California, New York, and New Jersey. Each guide includes the worked example, the state's depreciation adjustment form, and the §481(a) lookback mechanics for that jurisdiction.
Filing a study: the Cost Seg Smart engineered report includes federal Form 4562-ready schedules plus state-specific depreciation schedules for any decoupled state where your property sits. The CPA-Ready Guarantee covers free format revisions if your state preparer needs the schedule presented differently.
Related guides
- Bonus depreciation by state; overview
- California bonus depreciation; full mechanics + FTB 3885A workflow
- New York bonus depreciation; IT-225 add-back mechanics
- New Jersey bonus depreciation; PIT non-conforming, CBT conforms
- 100% bonus depreciation under OBBBA; what's permanent post-2025
- Form 3115 cost segregation lookback; §481(a) mechanics
- State tax rules for cost segregation; broader survey
- Sample cost segregation reports (23 PDFs)
- Audit defense scope; 13 IRS Pub 5653 quality elements
Final reminder: Last reviewed May 12, 2026. State conformity rules change annually, often retroactively. This table is a starting point for CPA conversations, not tax advice. Confirm current-year treatment with your CPA and the cited state agency before filing.