Which States Conform to Bonus Depreciation & Section 179? (2026)

Table current as of September 22, 2026. The federal rules for 2026 are generous: a $2,560,000 Section 179 limit (phasing out above $4,090,000) and permanent 100% bonus depreciation under the One Big Beautiful Bill Act for property acquired and placed in service after January 19, 2025. But your state may follow none of that. Most states with an income tax decouple from bonus depreciation — and a surprising number cap Section 179 far below the federal level.

Why publish another chart? Because the existing ones are stale. The OBBBA triggered a 2025–2026 wave of state legislation — Delaware, Illinois, Florida, Louisiana, Massachusetts, Arizona, and New Mexico all changed their depreciation conformity — and most online charts predate it.

The big picture: states love Section 179, not bonus depreciation

The pattern is lopsided. The large majority of states follow the federal Section 179 rules (or something close), while a majority decouple from bonus depreciation, forcing an addback: you add the bonus amount back to state income, then depreciate the property under regular state rules over its recovery period. You still get the deduction eventually — just not all in year one.

The states that go further and cap Section 179 below federal levels are where the real planning pain lives: California and D.C. at $25,000, Kentucky at $100,000, and a cluster (Florida, Massachusetts, Minnesota) frozen at older $1.25M/$3.13M federal levels.

2026 changes you won't find on old charts

• Delaware (HB 255): decoupled from the OBBBA's 100% bonus; keeps the old phase-down — just 20% bonus in 2026. Section 179 untouched.
• Illinois (PA 104-0453): extended its bonus addback to the OBBBA's new Section 168(n) qualified production property.
• Florida (HB 7031): retains the pre-OBBBA version of the code (1/1/2025) — bonus addback spread at 1/7 per year, Section 179 at $1.25M/$3.13M.
• Louisiana (Act 5): corporate filers decoupled from federal bonus for 2025+, replaced with an elective state 100% bonus.
• Massachusetts (H.B. 5470): Section 179 held at $1.25M/$3.13M for 2025–2026.
• Arizona (H.B. 4168): conforms to Section 168(k) bonus but decoupled from new Section 168(n).
• New Mexico (S.B. 151): decoupling starts with tax years beginning January 1, 2027 — New Mexico fully conforms for 2026. (Several charts get this wrong.)
• Wisconsin: decoupled from bonus but automatically adopted the OBBBA's higher Section 179 amounts.
• California (SB 711): conformity date moved to 1/1/2025 — but still no bonus, still a $25,000 Section 179 cap. See our California deep dive.

The 2026 50-state table

Key: “Conforms” = follows the federal rule. “Decoupled” = does not follow it (usually an addback). “Partial” = follows it with a state addback/spread. “N/A” = no relevant income tax. Section 179 figures shown as limit / phase-out threshold.

* Tennessee and Texas: no primary source located for 2026 — status shown is as commonly reported. Louisiana individual filers and Maryland (2026 session in flux): confirm with a state tax professional before relying. “Full” Section 179 = the federal $2.56M / $4.09M for 2026. Static-conformity states may lag future federal changes.

States with no income tax

Nevada, South Dakota, and Wyoming have neither a personal nor corporate income tax — conformity is moot. Washington taxes gross receipts (B&O), not income. Alaska and Florida have no personal income tax but do tax corporations (Florida's corporate tax decouples from bonus with a 1/7 addback spread). New Hampshire repealed its personal income tax effective 2025 but still taxes business profits. Texas has a franchise tax rather than an income tax.

What to do with this information

• Decoupled state? Budget for the addback. A $100,000 equipment purchase that produces an $80,000 federal deduction might produce a fraction of that on your state return in year one.
• Capped Section 179 state? Watch the ordering. In California, D.C., Hawaii, Indiana, and New Jersey, the $25,000 cap bites long before the federal limit matters.
• Buying a vehicle? State rules layer on top of the federal SUV cap and 2026 limits — see how bonus depreciation and Section 179 interact first.

Table compiled September 2026 from state revenue department guidance, enacted legislation (DE HB 255, IL PA 104-0453, FL HB 7031, LA Act 5, MA H.B. 5470, AZ H.B. 4168, NM S.B. 151, CA SB 711), the Deprecimax 2026 chart, Tax Foundation, and the Intuit OBBBA conformity tracker. State law changes every session — confirm your state's current position with a tax professional before filing. This guide is for educational purposes and is not tax advice.