Bonus Depreciation in 2026

Alabama: Rolling conformity; Alabama issued an OBBBA conformity summary. Alabama’s official OBBBA summary identifies the permanent 100% bonus deduction and qualified production property deduction as provisions that flow into Alabama income tax.

Individual treatment in Alabama: Follows the federal §168(k) and §168(n) deductions for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Alabama: Follows the federal §168(k) and §168(n) deductions for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Alabama tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Alabama Department of Revenue OBBBA executive summary (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Alaska: No broad individual income tax; ordinary corporate equipment follows rolling adoption. AS 43.20.021(a) provides rolling adoption. The January 2026 corporate instructions confirm that federal taxable income is the starting point and describe the state adjustments. The controlled ordinary-equipment scenario excludes petroleum and other special regimes.

Individual treatment in Alaska: Alaska does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax. Review needed: Section 168(n) production-property treatment and special industries are outside the reviewed ordinary-equipment scenario.

Corporate treatment in Alaska: Alaska adopts IRC §§1–1399 as amended. Ordinary nonpetroleum corporate equipment follows federal §168(k); production-property and special-industry analyses remain separate. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual result is not applicable, while the corporate result is $100,000 of retained bonus. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's corporate retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Alaska tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

Source qualification: Depreciation: Section 168(n) production-property treatment and special industries are outside the reviewed ordinary-equipment scenario.

• Alaska Legislature history of the individual income tax (2026–2027; 2026-09-12)
• Alaska Tax Division (2026–2027; 2026-09-12)
• Alaska Statutes Title 43, section 43.20.021(a) (2026–2027; 2026-09-12)
• Alaska 2025 Form 6000 instructions, revised January 1, 2026, pages 5 and 10 (2026–2027; 2026-09-12)
• Alaska Statutes 43.20.021(a): rolling federal adoption (2026; 2026-09-12)
• Alaska Form 6000 instructions, revised January 2026: pages 5 and 10 (2025; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Arizona: 2026 IRC conformity; individual bonus retained, corporate bonus disallowed. Enacted HB 4168, Chapter 140, advances Arizona’s IRC date to January 1, 2026. Its individual rule preserves the full §168(k) allowance for property placed in service after 2016; the corporate rule requires an election-out computation. Both taxpayer types separately add back §168(n) qualified-production-property expensing. Individual and corporate results cannot be interchanged.

Individual treatment in Arizona: Individuals retain the full federal §168(k) bonus amount for eligible new property in 2026; §168(n) is separately added back. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Arizona: Corporations recompute depreciation with the §168(k)(7) election out of bonus; §168(n) is also added back. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Separate corporate Arizona depreciation schedule. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies Arizona Form 120 adjustment schedules for the adjustment work.

Taxpayer type changes the current deduction by $100,000: $100,000 for the individual example versus $0 for the corporate example. Choose the applicable return before using the map; one result cannot be substituted for the other.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Arizona tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Arizona enacted HB 4168, Chapter 140: §§12, 14–15, 22–23; PDF pages 16, 22, 24, 38 and 40 (2026–2027; 2026-09-12)
• Arizona Legislature session laws: Chapter 140 enactment record (2026–2027; 2026-09-12)
• Arizona enacted HB 4168, Chapter 140: individual and corporate depreciation rules (2026; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Arkansas: Fixed-date and selective conformity to IRC §168. Arkansas adopts specified portions of §168 rather than the current federal bonus provisions. Current official forms retain separate Arkansas depreciation adjustments.

Individual treatment in Arkansas: Federal bonus depreciation is not adopted; use the Arkansas depreciation computation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: State depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Arkansas: Federal bonus depreciation is not adopted; use the Arkansas depreciation computation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: State depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Arkansas corporate income tax instructions (2026–2027; 2026-08-30)
• Arkansas corporate income tax FAQs (2026–2027; 2026-08-30)
• Arkansas 2025 individual forms (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

California: Static conformity with express nonconformity to federal bonus depreciation. California Publication 1001 identifies bonus depreciation as a federal to California difference. A separate California basis must be maintained through disposition.

Individual treatment in California: California does not conform to federal bonus depreciation; compute California depreciation separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: California basis and depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in California: California does not conform to federal bonus depreciation; compute California depreciation separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: California basis and depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• California FTB Publication 1001 (2026–2027; 2026-08-30)
• California FTB Publication 1001: depreciation differences (2025; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Colorado: Rolling conformity; 2026 official legislative analysis confirms treatment. Colorado’s official 2026 federal-tax-change report treats the federal deductions as flowing into the state base. A 2026 proposal to decouple did not become law.

Individual treatment in Colorado: Colorado follows the federal deductions for §168(k) bonus and §168(n) qualified production property. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Colorado: Colorado follows the federal deductions for §168(k) bonus and §168(n) qualified production property. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Colorado tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Colorado 2026 federal tax law provisions report (2026–2027; 2026-08-30)
• Colorado HB 26-1222 status (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Connecticut: Express addback and state recovery for individuals/PTEs; separate corporate basis. The recovery mechanism differs by taxpayer type. Prior-year addback balances continue independently of the current federal deduction.

Individual treatment in Connecticut: Add back 100% of federal bonus, then deduct 25% of the addition in each of the next four years. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. The modeled bonus-and-recovery sequence is 2026: $0; 2027: $25,000; 2028: $25,000; 2029: $25,000; 2030: $25,000. These entries track this acquisition only; earlier addback balances are separate.

Corporate treatment in Connecticut: Maintain Connecticut basis and depreciation; federal bonus is not allowed unchanged. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Connecticut depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies CT-1120 ATT for the adjustment work.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Connecticut bonus depreciation guidance (2026–2027; 2026-08-30)
• Connecticut Form CT-1120 ATT (2026–2027; 2026-08-30)
• Connecticut corporation tax information (2026–2027; 2026-08-30)
• Connecticut DRS: bonus addition and four-year recovery (2018; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Delaware: Pre-OBBBA bonus schedule: 20% in 2026 and 0% in 2027. TIM 2025-02 resolves the amount: Delaware rejects the OBBBA increase, not every bonus deduction. The general TCJA percentage is 20% in 2026 and 0% from 2027 through 2030. Covered individual property starts after December 31, 2025; corporate property after January 19, 2025. The special qualified-production-property allowance is separately disallowed; the provisions sunset for property placed in service after December 31, 2030.

Individual treatment in Delaware: Ordinary eligible 2026 property retains 20% bonus under the pre-OBBBA schedule; the rest follows regular depreciation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $20,000 of bonus in the current year. Recovery method recorded for this taxpayer: Regular state depreciation on the remaining $80,000; this is not a fixed five-year addback-recovery schedule.. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Delaware: Ordinary eligible 2026 property retains 20% bonus under the pre-OBBBA schedule; the rest follows regular depreciation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $20,000 of bonus in the current year. Recovery method recorded for this taxpayer: Regular state depreciation on the remaining $80,000; this is not a fixed five-year addback-recovery schedule.. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $20,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $20,000 × 5% = $1,000 of current tax reduction before interactions. The 5% is hypothetical, not a Delaware tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Delaware TIM 2025-02: 20% bonus in 2026 (2025; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Florida: No broad individual income tax; corporate statutory decoupling through 2026 to 2027. Florida TIP 26C01-01 preserves its pre-OBBBA §168(k) reference for the covered period and excludes the new §168(n) deduction. Asset dates matter.

Individual treatment in Florida: Florida does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

Corporate treatment in Florida: For qualifying property placed in service before January 1, 2027, add back federal bonus and recover the addition in sevenths; §168(n) is excluded. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $2,857 of bonus in the current year. The modeled bonus-and-recovery sequence is 2026: $2,857; 2027: $2,857; 2028: $2,857; 2029: $2,857; 2030: $2,857; 2031: $2,857; 2032: $2,857. These entries track this acquisition only; earlier addback balances are separate.

The individual result is not applicable, while the corporate result is $2,857 of retained bonus. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's corporate retained component: $2,857 × 5% = $143 of current tax reduction before interactions. The 5% is hypothetical, not a Florida tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Florida TIP 26C01-01 (2026–2027; 2026-08-30)
• Florida TIP 26C01-01: corporate federal conformity (2026; 2026-09-12)
• Florida TIP 26C01-01: pro-forma income and seven-year recovery (2026; 2026-09-12)
• IRS Notice 2026-11: pre-OBBBA percentage and current rules (2026; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Georgia: Express statutory exclusion of IRC §168(k) and §168(n). Georgia’s IRC definition excludes both federal provisions. The state Form 4562 is used to compute the difference and maintain state basis.

Individual treatment in Georgia: Use Georgia depreciation without federal §168(k) or §168(n). For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Georgia depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies Georgia Form 4562 for the adjustment work.

Corporate treatment in Georgia: Use Georgia depreciation without federal §168(k) or §168(n). For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Georgia depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies Georgia Form 4562 for the adjustment work.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Georgia federal tax changes (2026–2027; 2026-08-30)
• Georgia Form 4562 (2026–2027; 2026-08-30)
• Georgia Form IT-611 instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Hawaii: Express nonconformity and separate Hawaii depreciation. Hawaii has long required a state depreciation computation for bonus property. Current return instructions continue the separate-depreciation approach.

Individual treatment in Hawaii: Hawaii does not allow the federal bonus deduction; compute Hawaii depreciation separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Hawaii depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Hawaii: Hawaii does not allow the federal bonus deduction; compute Hawaii depreciation separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Hawaii depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Hawaii bonus depreciation announcement (2026–2027; 2026-08-30)
• Hawaii Form N-11 instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Idaho: Express bonus-depreciation addition and later state recovery. Idaho requires taxpayers to keep a separate state depreciation schedule until the property is fully recovered or disposed of.

Individual treatment in Idaho: Add back the federal bonus difference in the first year; deduct later Idaho-versus-federal depreciation differences. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Annual Idaho/federal depreciation difference. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Idaho: Add back the federal bonus difference in the first year; deduct later Idaho-versus-federal depreciation differences. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Annual Idaho/federal depreciation difference. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Idaho bonus depreciation guidance (2026–2027; 2026-08-30)
• Idaho Form 39R instructions (2026–2027; 2026-08-30)
• Idaho income tax rule 322 (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Illinois: Express addback and Illinois Form IL-4562 recovery. The current IL-4562 instructions expressly address both §168(k) and §168(n). Continue tracking earlier Illinois basis adjustments.

Individual treatment in Illinois: Reverse federal §168(k)/§168(n) amounts and compute the Illinois depreciation modification. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Illinois depreciation modification. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies IL-4562 for the adjustment work.

Corporate treatment in Illinois: Reverse federal §168(k)/§168(n) amounts and compute the Illinois depreciation modification. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Illinois depreciation modification. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies IL-4562 for the adjustment work.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Illinois Form IL-4562 instructions (2026–2027; 2026-08-30)
• Illinois IL-4562 instruction PDF (2026–2027; 2026-08-30)
• Illinois IL-4562 instructions: regular state depreciation after bonus addback (2025; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Indiana: Express state addback; Indiana maintains a separate adjusted basis. Indiana Information Bulletin 118 expressly includes both §168(k) and §168(n) in the state decoupling rule.

Individual treatment in Indiana: Add back federal bonus depreciation and maintain Indiana basis for later depreciation or disposition. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Indiana basis and depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Indiana: Add back federal bonus depreciation and maintain Indiana basis for later depreciation or disposition. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Indiana basis and depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Indiana Information Bulletin 118 (2026–2027; 2026-08-30)
• Indiana individual add-backs (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Iowa: Rolling conformity; full federal depreciation conformity since 2021. Iowa uses rolling federal conformity and no longer requires the former Iowa bonus-depreciation adjustment for property placed in service in tax years beginning on or after January 1, 2021.

Individual treatment in Iowa: Iowa follows current federal depreciation, including §168(k) and §168(n), for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Iowa: Iowa follows current federal depreciation, including §168(k) and §168(n), for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Iowa tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Iowa rolling-conformity guidance (2026–2027; 2026-08-30)
• Iowa Form IA 4562A instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Kansas: Federal starting point and separate Kansas expensing statute; §168(n) not directly addressed in located guidance. Kansas also offers a separate state expensing deduction under K.S.A. 79-32,143a. Do not treat that separate election as proof of §168(n) conformity.

Individual treatment in Kansas: Current Kansas statutes recognize federal §168(k); a direct current official statement on §168(n) was not located. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Kansas: Current Kansas statutes recognize federal §168(k); a direct current official statement on §168(n) was not located. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Kansas tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

Source qualification: Depreciation: Confirm Kansas treatment of IRC §168(n) from a current Department of Revenue instruction or enacted statute before describing Kansas as fully conforming.

• Kansas K.S.A. 79-32,143a (2026–2027; 2026-08-30)
• Kansas K.S.A. 79-32,117 (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Kentucky: IRC §168 fixed to December 31, 2001. Kentucky’s current statute fixes the applicable version of §168 at December 31, 2001, so neither the current §168(k) deduction nor new §168(n) deduction flows through.

Individual treatment in Kentucky: Kentucky does not adopt the current federal bonus provisions; use Kentucky depreciation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Kentucky depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Kentucky: Kentucky does not adopt the current federal bonus provisions; use Kentucky depreciation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Kentucky depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Kentucky depreciation statute (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Louisiana: Fixed-date federal conformity plus elective Louisiana 100% expensing. Louisiana’s result can equal a 100% first-year deduction, but it is a state election rather than simple conformity to federal §168(k) or §168(n). Qualification and basis tracking are separate.

Individual treatment in Louisiana: Louisiana offers an optional state 100% expensing deduction for qualifying property; later federal depreciation on the same basis is added back. The current retained bonus component is not calculated and receives no rank. A separate state expensing provision or election can change the first-year result. Asset eligibility and the election are not assumed in this federal-bonus-only scenario.

Corporate treatment in Louisiana: Louisiana offers an optional state 100% expensing deduction for qualifying property; later federal depreciation on the same basis is added back. The current retained bonus component is not calculated and receives no rank. A separate state expensing provision or election can change the first-year result. Asset eligibility and the election are not assumed in this federal-bonus-only scenario.

The individual result is election dependent, while the corporate result is election dependent. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• Louisiana bonus-depreciation FAQ (2026–2027; 2026-08-30)
• Louisiana R.S. 47:287.71 (2026–2027; 2026-08-30)
• Louisiana Title 47 income-tax laws (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Maine: Express addback and pro-forma state depreciation; former state credit repealed for 2025+. The older Maine capital-investment credit is not available for tax years beginning after 2024. Continue state-basis tracking for existing property.

Individual treatment in Maine: Add back the federal bonus amount and claim depreciation under Maine’s pro-forma computation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Maine pro-forma depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Maine: Add back the federal bonus amount and claim depreciation under Maine’s pro-forma computation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Maine pro-forma depreciation. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Maine Form 1120ME instructions (2026–2027; 2026-08-30)
• Maine bonus depreciation guidance (2026–2027; 2026-08-30)
• Maine 2026 individual forms (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Maryland: Federal bonus decoupling with a fact-specific manufacturing exception. Maryland’s manufacturer exception is asset- and taxpayer-specific. The new §168(n) qualified production property deduction should not be assumed to satisfy Maryland’s separate exception.

Individual treatment in Maryland: Generally decoupled from federal bonus; qualifying manufacturing property may receive different treatment. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Separate Maryland depreciation and state basis; apply Form 500DM where required.. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies 500DM where applicable for the adjustment work.

Corporate treatment in Maryland: Generally decoupled from federal bonus; qualifying manufacturing property may receive different treatment. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Separate Maryland depreciation and state basis; apply Form 500DM where required.. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies 500DM where applicable for the adjustment work.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

Source qualification: Depreciation: Apply the Maryland manufacturing exception only after confirming the taxpayer and property meet the state definition; do not map federal §168(n) eligibility directly to the Maryland exception.

• Maryland Administrative Release 38: bonus decoupling and manufacturer exception (2022; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Massachusetts: Express §168(k) decoupling; §168(n) changes between 2026 and 2027. The placed-in-service year and which federal subsection produced the deduction are essential. A single “conforms/does not conform” label would be misleading for Massachusetts.

Individual treatment in Massachusetts: §168(k) remains disallowed. §168(n) is disallowed for 2026 and follows federal law beginning in 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Massachusetts depreciation for disallowed federal amounts. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Massachusetts: §168(k) remains disallowed. §168(n) is disallowed for 2026 and follows federal law beginning in 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Massachusetts depreciation for disallowed federal amounts. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Massachusetts corporate federal differences (2026–2027; 2026-08-30)
• Massachusetts TIR 26-4 (2026–2027; 2026-08-30)
• Massachusetts adjusted gross income guidance (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Michigan: Express OBBBA decoupling; individual legacy phaseout differs from corporate treatment. Michigan’s 2026 notice separates individual/flow-through treatment from corporate income tax treatment. Do not use the 20% individual figure on a corporate return.

Individual treatment in Michigan: For individuals and flow-through entities, Michigan retains the pre-OBBBA phaseout: 20% federal bonus in 2026 and 0% in 2027; §168(n) is disallowed. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $20,000 of bonus in the current year. Recovery method recorded for this taxpayer: Michigan adjustment and basis tracking. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Michigan: Michigan corporate income tax is fully decoupled from §168(k) and §168(n). For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Michigan depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Taxpayer type changes the current deduction by $20,000: $20,000 for the individual example versus $0 for the corporate example. Choose the applicable return before using the map; one result cannot be substituted for the other.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $20,000 × 5% = $1,000 of current tax reduction before interactions. The 5% is hypothetical, not a Michigan tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Michigan OBBBA decoupling notice (2026–2027; 2026-08-30)
• Michigan corporate bonus-depreciation FAQ (2026–2027; 2026-08-30)
• Michigan Treasury: pre-OBBBA bonus rules for individuals and flow-through tax (2026; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Minnesota: 80% §168(k) addition with five-year recovery; §168(n) specifically conforms. Minnesota permits 20% of the federal §168(k) amount immediately. Its enacted 2026 law expressly leaves §168(n) qualified production property outside the bonus addition.

Individual treatment in Minnesota: For §168(k), add back 80% and deduct one-fifth of that addition in each of the next five years. Qualified production property under §168(n) is not added back. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $20,000 of bonus in the current year. The modeled bonus-and-recovery sequence is 2026: $20,000; 2027: $16,000; 2028: $16,000; 2029: $16,000; 2030: $16,000; 2031: $16,000. These entries track this acquisition only; earlier addback balances are separate.

Corporate treatment in Minnesota: For §168(k), add back 80% and deduct one-fifth of that addition in each of the next five years. Qualified production property under §168(n) is not added back. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $20,000 of bonus in the current year. The modeled bonus-and-recovery sequence is 2026: $20,000; 2027: $16,000; 2028: $16,000; 2029: $16,000; 2030: $16,000; 2031: $16,000. These entries track this acquisition only; earlier addback balances are separate.

The individual and corporate examples both retain $20,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $20,000 × 5% = $1,000 of current tax reduction before interactions. The 5% is hypothetical, not a Minnesota tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Minnesota 2026 tax law changes (2026–2027; 2026-08-30)
• Minnesota 2026 law-change FAQ (2026–2027; 2026-08-30)
• Minnesota enacted tax bill summary (2026–2027; 2026-08-30)
• Minnesota 2026 enacted tax bill summary (2026; 2026-09-12)
• Minnesota DOR: bonus depreciation and recovery (2026; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Mississippi: State-specific elective 100% expensing for tax years after 2022. A taxpayer may reach a full first-year state deduction under Mississippi’s own provision. Qualification and elections must be tested under Mississippi law rather than copied from the federal return.

Individual treatment in Mississippi: Mississippi permits a state 100% first-year deduction for qualifying depreciable property; it is not simple federal bonus conformity. The current retained bonus component is not calculated and receives no rank. A separate state expensing provision or election can change the first-year result. Asset eligibility and the election are not assumed in this federal-bonus-only scenario.

Corporate treatment in Mississippi: Mississippi permits a state 100% first-year deduction for qualifying depreciable property; it is not simple federal bonus conformity. The current retained bonus component is not calculated and receives no rank. A separate state expensing provision or election can change the first-year result. Asset eligibility and the election are not assumed in this federal-bonus-only scenario.

The individual result is election dependent, while the corporate result is election dependent. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• Mississippi business tax FAQs (2026–2027; 2026-08-30)
• Mississippi Notice 80-23-003: optional state expensing (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Missouri: Rolling conformity; no state bonus addback for property after June 30, 2003. Missouri’s official FAQs state that the former addback does not apply to property purchased after June 30, 2003. Federal deductions flow through the federal starting point.

Individual treatment in Missouri: Missouri follows current federal depreciation and does not require a bonus addback for current property. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Missouri: Missouri follows current federal depreciation and does not require a bonus addback for current property. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Missouri tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Missouri partnership tax FAQ (2026–2027; 2026-08-30)
• Missouri corporation income tax FAQ (2026–2027; 2026-08-30)
• Missouri Form MO-1120S instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Montana: Rolling conformity to the Internal Revenue Code. Montana’s current statutory federal-income definitions and return instructions provide the federal starting point for both taxpayer types.

Individual treatment in Montana: Montana begins with the current federal income base and has no current bonus-depreciation addback. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Montana: Montana begins with the current federal income base and has no current bonus-depreciation addback. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Montana tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Montana individual income-tax statutes (2026–2027; 2026-08-30)
• Montana Form CIT instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Nebraska: Express federal bonus conformity for tax years beginning in 2006 and later. Nebraska’s Department of Revenue states that no separate state bonus adjustment is required for tax years beginning on or after January 1, 2006.

Individual treatment in Nebraska: Nebraska follows the current federal depreciation deduction for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Nebraska: Nebraska follows the current federal depreciation deduction for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Nebraska tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Nebraska bonus depreciation guidance (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Nevada: No broad individual or corporate net-income tax. Federal depreciation does not create a broad Nevada income-tax deduction. Entity-level Nevada taxes should be analyzed under their own gross-revenue or payroll bases.

Individual treatment in Nevada: Nevada does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

Corporate treatment in Nevada: Nevada does not impose a broad corporate net-income tax; its Commerce Tax and Modified Business Tax are different tax bases. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

The individual result is not applicable, while the corporate result is not applicable. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• Nevada Department of Taxation (2026–2027; 2026-08-30)
• Nevada Modified Business Tax (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

New Hampshire: No broad individual income tax; Business Profits Tax expressly excludes §168(k). The Business Profits Tax applies beyond conventional C corporations. The statute directly resolves §168(k), but this tracker does not infer §168(n) treatment from silence.

Individual treatment in New Hampshire: New Hampshire does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax. Review needed: Confirm New Hampshire Business Profits Tax treatment of IRC §168(n) from 2026 legislation or Department of Revenue Administration instructions.

Corporate treatment in New Hampshire: The Business Profits Tax expressly disallows §168(k); a direct official 2026 statement on §168(n) was not located. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: New Hampshire depreciation adjustment for §168(k). No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual result is not applicable, while the corporate result is $0 of retained bonus. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

Source qualification: Depreciation: Confirm New Hampshire Business Profits Tax treatment of IRC §168(n) from 2026 legislation or Department of Revenue Administration instructions.

• New Hampshire RSA 77-A:3-b (2026–2027; 2026-08-30)
• New Hampshire Business Profits Tax statutes (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

New Jersey: Express decoupling and separate New Jersey depreciation. New Jersey’s official decoupling guidance and current CBT instructions require reversal of federal bonus depreciation and state basis tracking.

Individual treatment in New Jersey: New Jersey does not follow the federal bonus deduction; calculate New Jersey depreciation and basis separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: New Jersey depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in New Jersey: New Jersey does not follow the federal bonus deduction; calculate New Jersey depreciation and basis separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: New Jersey depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• New Jersey bonus-depreciation decoupling (2026–2027; 2026-08-30)
• New Jersey CBT-100U instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

New Mexico: 2026 conformity; enacted corporate decoupling begins in 2027. The Legislative Finance Committee expressly identifies individual and corporate revenue effects from federal 100% bonus. Enacted SB151, Chapter 69, section 1 adds back corporate bonus exceeding ordinary depreciation; section 11 makes that change effective for tax years beginning January 1, 2027. Applying the 2027 corporate rule to 2026 or to an individual Schedule E would be incorrect. New §168(n) eligibility remains a separate asset test.

Individual treatment in New Mexico: Ordinary §168(k) bonus flows into individual income in 2026. The enacted 2027 depreciation reversal changes the corporate base, not the individual base. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in New Mexico: Federal §168(k) and §168(n) treatment flows through in 2026; SB151 requires a corporate non-bonus computation for taxable years beginning January 1, 2027 and later. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a New Mexico tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• New Mexico LFC FY2027 recommendations: individual and corporate bonus effects (2026; 2026-09-12)
• New Mexico enacted SB151: corporate change starts in 2027 (2026; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

New York: Express state modification for federal bonus depreciation. Current individual and corporate instructions identify the required federal to New York depreciation modifications. New York Notice N-26-1 specifically addresses qualified production property.

Individual treatment in New York: Reverse federal §168(k) and §168(n) deductions and claim New York depreciation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: New York depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies IT-225 / applicable depreciation schedules for the adjustment work.

Corporate treatment in New York: Reverse federal §168(k) and §168(n) deductions and claim New York depreciation. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: New York depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies CT-399 for the adjustment work.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• New York Form CT-399 instructions (2026–2027; 2026-08-30)
• New York Form IT-225 instructions (2026–2027; 2026-08-30)
• New York Notice N-26-1 (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

North Carolina: 85% addition with five-year recovery. North Carolina allows 15% immediately and spreads recovery of the 85% state addition. Track each property-year layer separately.

Individual treatment in North Carolina: Add back 85% of the federal accelerated-depreciation amount, then deduct 20% of that addition in each of the next five years. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $15,000 of bonus in the current year. The modeled bonus-and-recovery sequence is 2026: $15,000; 2027: $17,000; 2028: $17,000; 2029: $17,000; 2030: $17,000; 2031: $17,000. These entries track this acquisition only; earlier addback balances are separate.

Corporate treatment in North Carolina: Add back 85% of the federal accelerated-depreciation amount, then deduct 20% of that addition in each of the next five years. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $15,000 of bonus in the current year. The modeled bonus-and-recovery sequence is 2026: $15,000; 2027: $17,000; 2028: $17,000; 2029: $17,000; 2030: $17,000; 2031: $17,000. These entries track this acquisition only; earlier addback balances are separate.

The individual and corporate examples both retain $15,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $15,000 × 5% = $750 of current tax reduction before interactions. The 5% is hypothetical, not a North Carolina tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• North Carolina bonus depreciation adjustment (2026–2027; 2026-08-30)
• North Carolina G.S. 105-153.6: depreciation additions and recovery (2026; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

North Dakota: Rolling federal conformity through federal taxable-income definitions. Current statutes and return instructions use the federal base and do not enumerate a bonus-depreciation reversal for 2026 to 2027.

Individual treatment in North Dakota: North Dakota follows the federal deductions through its current federal income starting point. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in North Dakota: North Dakota follows the federal deductions through its current federal taxable-income starting point. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a North Dakota tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• North Dakota Century Code chapter 57-38 (2026–2027; 2026-08-30)
• North Dakota individual income-tax booklet (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Ohio: Individual modification for §168(k); §168(n) generally flows through; no broad C-corporation net-income tax. The individual/PTE §168(k) modification has statutory exceptions, so the five-sixths addition is not universal. Official fiscal analysis treats §168(n) as affecting Ohio personal income tax.

Individual treatment in Ohio: For §168(k), generally add back five-sixths and deduct one-fifth of that addback in each of the next five years. Payroll-growth and NOL exceptions can change the result; §168(n) generally follows federal law. The current retained bonus component is not calculated and receives no rank. The general five-sixths addition is subject to payroll and loss exceptions. This scenario does not supply those facts, so the default is unavailable.

Corporate treatment in Ohio: Ohio does not impose a broad C-corporation net-income tax; the Commercial Activity Tax is not based on net income. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

The individual result is fact dependent, while the corporate result is not applicable. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• Ohio Revised Code 5747.01 (2026–2027; 2026-08-30)
• Ohio individual income-tax booklet (2026–2027; 2026-08-30)
• Ohio OBBBA fiscal analysis (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Oklahoma: State elective immediate expensing; federal §168(n) treatment not directly resolved. The state election may produce an immediate deduction, but federal and Oklahoma eligibility should be tested separately. Located official materials did not directly resolve new §168(n).

Individual treatment in Oklahoma: Oklahoma permits a state 100% expensing election for qualifying property; it is not simple federal bonus conformity. The current retained bonus component is not calculated and receives no rank. A separate state expensing provision or election can change the first-year result. Asset eligibility and the election are not assumed in this federal-bonus-only scenario. Review needed: Confirm Oklahoma treatment of IRC §168(n) and the current state election mechanics from 2026 return instructions before describing the state as fully conforming.

Corporate treatment in Oklahoma: Oklahoma permits a state 100% expensing election for qualifying property; it is not simple federal bonus conformity. The current retained bonus component is not calculated and receives no rank. A separate state expensing provision or election can change the first-year result. Asset eligibility and the election are not assumed in this federal-bonus-only scenario. Review needed: Confirm Oklahoma treatment of IRC §168(n) and the current state election mechanics from 2026 return instructions before describing the state as fully conforming.

The individual result is election dependent, while the corporate result is election dependent. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

Source qualification: Depreciation: Confirm Oklahoma treatment of IRC §168(n) and the current state election mechanics from 2026 return instructions before describing the state as fully conforming.

• Oklahoma Form 512 packet (2026–2027; 2026-08-30)
• Oklahoma Tax Commission tax documents (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Oregon: Express decoupling for tax years beginning on or after January 1, 2026. Oregon enacted decoupling effective for tax years beginning in 2026. This row does not invent a recovery schedule before the Department of Revenue publishes operative forms.

Individual treatment in Oregon: Oregon disallows federal bonus depreciation for 2026 to 2027; implementing recovery instructions are pending. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Maintain Oregon basis and apply the operative ordinary-depreciation instructions; no invented annual recovery sequence.. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Oregon: Oregon disallows federal bonus depreciation for 2026 to 2027; implementing recovery instructions are pending. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Maintain Oregon basis and apply the operative ordinary-depreciation instructions; no invented annual recovery sequence.. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Oregon DOR: enacted 2026 legislation, SB1507 (2026; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Pennsylvania: Separate Pennsylvania depreciation; express addback of §168(k) and §168(n). The computation differs between personal income tax and corporate net income tax, but neither permits the federal bonus deduction unchanged. Act 45 of 2025 expressly addresses §168(n).

Individual treatment in Pennsylvania: Pennsylvania personal income tax uses its own depreciation rules rather than the federal bonus amount. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Pennsylvania depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Pennsylvania: Add back federal bonus depreciation and claim Pennsylvania depreciation under the corporate rules. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Pennsylvania depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Pennsylvania corporate net income tax audit manual (2026–2027; 2026-08-30)
• Pennsylvania Act 45 of 2025 guidance (2026–2027; 2026-08-30)
• Pennsylvania personal income-tax property guide (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Rhode Island: Express statutory disallowance of federal bonus depreciation. Rhode Island’s statute broadly disallows bonus depreciation enacted under federal law. Current return instructions carry the related state modification.

Individual treatment in Rhode Island: Compute depreciation and basis as though federal bonus depreciation had not been enacted. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Pre-bonus depreciation and Rhode Island basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Rhode Island: Compute depreciation and basis as though federal bonus depreciation had not been enacted. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Pre-bonus depreciation and Rhode Island basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Rhode Island General Laws §44-61-1 (2026–2027; 2026-08-30)
• Rhode Island Form RI-1040 instructions (2026–2027; 2026-08-30)
• Rhode Island Form RI-1120C booklet (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

South Carolina: Express exception to IRC conformity for §168(k) through §168(n). Current South Carolina corporate instructions expressly describe the conformity exception as covering §168(k) through §168(n).

Individual treatment in South Carolina: Use South Carolina depreciation without federal §168(k) or §168(n). For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: South Carolina depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in South Carolina: Use South Carolina depreciation without federal §168(k) or §168(n). For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: South Carolina depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies SC1120 adjustment schedules for the adjustment work.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• South Carolina Form SC1120 instructions (2026–2027; 2026-08-30)
• South Carolina IRC conformity update (2026–2027; 2026-08-30)
• South Carolina federal conformity exceptions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

South Dakota: No broad individual or corporate income tax. Federal depreciation does not create a South Dakota broad income-tax deduction. Specialized taxes, including bank franchise tax, require separate analysis.

Individual treatment in South Dakota: South Dakota does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

Corporate treatment in South Dakota: South Dakota does not impose a broad corporate income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

The individual result is not applicable, while the corporate result is not applicable. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• South Dakota tax types (2026–2027; 2026-08-30)
• South Dakota sales and use tax guide (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Tennessee: No broad individual income tax; franchise/excise tax retains pre-OBBBA phaseout. Tennessee’s entity-level excise tax can apply to pass-through entities as well as corporations. The taxpayer’s federal property year and state entity classification both matter.

Individual treatment in Tennessee: Tennessee does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

Corporate treatment in Tennessee: For franchise/excise tax, §168(k) follows the pre-OBBBA phaseout: 20% bonus in 2026 and 0% in 2027. §168(n) is disallowed. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $20,000 of bonus in the current year. Recovery method recorded for this taxpayer: Tennessee franchise/excise depreciation adjustments. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual result is not applicable, while the corporate result is $20,000 of retained bonus. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's corporate retained component: $20,000 × 5% = $1,000 of current tax reduction before interactions. The 5% is hypothetical, not a Tennessee tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Tennessee franchise/excise Notice 25-36 (2026–2027; 2026-08-30)
• Tennessee franchise and excise tax manual (2026–2027; 2026-08-30)
• Tennessee Notice 25-36: federal bonus depreciation conformity (2025; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Texas: No broad individual income tax; franchise-tax cost-of-goods-sold treatment is limited. Depreciation is not a general Texas franchise-tax deduction. The COGS rule is activity- and asset-specific and should not be presented as broad federal conformity.

Individual treatment in Texas: Texas does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

Corporate treatment in Texas: Texas franchise tax is not a net-income tax. For reports due in 2026, federal bonus depreciation may enter cost of goods sold only for qualifying assets associated with producing goods. The $100,000 net-income-tax example is not comparable to this tax base, so no numerical deduction or rank is assigned. An asset-specific expense treatment cannot be read as a general income-tax allowance.

The individual result is not applicable, while the corporate result is not comparable. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• Texas franchise-tax COGS FAQ (2026–2027; 2026-08-30)
• Texas franchise-tax report information and instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Utah: Federal starting point and legislative OBBBA impact confirmation. The Utah Legislature’s OBBBA report expressly describes 100% equipment bonus flowing through federal AGI and Utah taxable income. It separately identifies the qualified-production-property deduction. These timing changes supplement the statutory federal starting points and adjustment lists; basis is not deducted twice.

Individual treatment in Utah: Utah starts with current federal adjusted gross income and does not enumerate a §168(k) or §168(n) reversal. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in Utah: Utah starts with current federal taxable income and does not enumerate a §168(k) or §168(n) reversal. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a Utah tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• Utah Legislature: OBBBA equipment bonus and production property (2025; 2026-09-12)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Vermont: Express 2026 decoupling enacted in Act 164. Act 164 expressly addresses both federal provisions and preserves basis recovery through the otherwise applicable depreciation method.

Individual treatment in Vermont: Vermont disallows §168(k) and §168(n), then permits recovery under the non-bonus depreciation schedule. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Normal depreciation without federal bonus. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Vermont: Vermont disallows §168(k) and §168(n), then permits recovery under the non-bonus depreciation schedule. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Normal depreciation without federal bonus. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Vermont Act 164 as enacted (2026–2027; 2026-08-30)
• Vermont H.933 bill status (2026–2027; 2026-08-30)
• Vermont income-tax statute (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Virginia: Continuing statutory exception for federal bonus depreciation. Virginia’s annual conformity guidance retains bonus depreciation as an exception. Taxpayers must preserve Virginia basis for later depreciation and disposition.

Individual treatment in Virginia: Recompute Virginia depreciation as though the federal bonus provisions did not apply. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Virginia depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

Corporate treatment in Virginia: Recompute Virginia depreciation as though the federal bonus provisions did not apply. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Virginia depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Virginia Tax Bulletin 26-1 (2026–2027; 2026-08-30)
• Virginia draft Form 500 instructions (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Washington: No broad individual or corporate net-income tax; B&O tax is gross receipts based. Washington’s capital-gains excise tax and B&O tax are not broad net-income taxes. Federal bonus depreciation does not flow into a general state income-tax base.

Individual treatment in Washington: Washington does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

Corporate treatment in Washington: Washington’s B&O tax is imposed on gross receipts without a general depreciation deduction. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

The individual result is not applicable, while the corporate result is not applicable. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• Washington tax structure (2026–2027; 2026-08-30)
• Washington B&O tax (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

West Virginia: Rolling conformity; 2026 legislation adopts federal changes made in 2025. The current individual and corporate statutes, together with 2026 conformity legislation, incorporate the relevant federal changes.

Individual treatment in West Virginia: West Virginia adopted the 2025 federal changes, so §168(k) and §168(n) flow through for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

Corporate treatment in West Virginia: West Virginia adopted the 2025 federal changes, so §168(k) and §168(n) flow through for 2026 to 2027. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $100,000 of bonus in the current year. The full modeled bonus component is current, so this example has no deferred bonus-addback balance. That does not erase adjustments still attached to older assets.

The individual and corporate examples both retain $100,000 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

To illustrate the arithmetic only, apply an assumed 5% marginal rate to this state's individual retained component: $100,000 × 5% = $5,000 of current tax reduction before interactions. The 5% is hypothetical, not a West Virginia tax rate or estimated tax bill. Later deductions, sale and recapture can reverse timing benefits, so this is not permanent savings.

• West Virginia Code §11-21-9 (2026–2027; 2026-08-30)
• West Virginia Code §11-24-3 (2026–2027; 2026-08-30)
• West Virginia SB 400 enrolled (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Wisconsin: Static conformity; current instructions expressly exclude §168(k) and §168(n). Wisconsin generally uses a January 1, 2014 version of the Code for these provisions. Current Schedule I instructions explicitly state that the OBBBA changes to both provisions do not apply.

Individual treatment in Wisconsin: Wisconsin does not adopt federal §168(k) or §168(n); compute Wisconsin depreciation separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the individual calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Wisconsin depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies Schedule I or entity adjustment schedules for the adjustment work.

Corporate treatment in Wisconsin: Wisconsin does not adopt federal §168(k) or §168(n); compute Wisconsin depreciation separately. For the modeled $100,000 of eligible ordinary Section 168(k) property acquired and placed in service in 2026, the corporate calculation retains $0 of bonus in the current year. Recovery method recorded for this taxpayer: Wisconsin depreciation and basis. No annual dollar schedule is calculated because it would require the relevant asset life, basis or other state-specific recovery inputs. The tracker identifies Wisconsin corporate adjustment schedules for the adjustment work.

The individual and corporate examples both retain $0 currently. Their matching deduction amounts do not establish equal tax bills: the taxpayer-specific tax base, rates, credits and recovery rules still have to be applied.

A calculated $0 retained-bonus amount times a hypothetical 5% marginal rate is $0 for this component. That arithmetic says nothing about regular state depreciation or the separate federal deduction. A complete asset schedule can still produce deductions; applying a tax rate to the entire purchase price would overstate what this narrow comparison establishes.

• Wisconsin Schedule I instructions (2026–2027; 2026-08-30)
• Wisconsin pass-through tax FAQ (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table

Wyoming: No broad individual or corporate income tax. Federal depreciation does not flow into a Wyoming broad income-tax return. Industry-specific severance, property, and sales/use taxes remain separate.

Individual treatment in Wyoming: Wyoming does not impose a broad individual income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

Corporate treatment in Wyoming: Wyoming does not impose a broad corporate income tax. The $100,000 example has no comparable broad net-income-tax deduction for this taxpayer type. Its result is not applicable and receives no rank; that is different from calculating a zero deduction in a state that imposes the tax.

The individual result is not applicable, while the corporate result is not applicable. An unavailable or inapplicable result is not a measured tie with a zero-dollar state. Resolve the actual owner and return type before comparing deduction timing.

No hypothetical tax reduction is calculated here because neither taxpayer column supplies a comparable numerical bonus amount. Multiplying the federal $100,000 deduction by a guessed state rate would conceal the missing rule. The next useful step is to resolve the cited return, election or tax-base question and then price the usable deduction in that taxpayer’s return.

• Wyoming Legislative Service Office tax report (2026–2027; 2026-08-30)
• Wyoming State Auditor financial report (2026–2027; 2026-08-30)
• IRS Notice 2026-11: additional first-year depreciation (2026; 2026-09-12)
• IRS Publication 925: passive activity and at-risk rules (2025; 2026-09-12)
• Census ACS housing, rent and property-tax data
• NAIC 2023 homeowner premium table