State Conformity Tracker: OBBBA Bonus Depreciation by State
Roughly 18 states fully conform to OBBBA bonus depreciation (rolling conformity). About 12 states fully decouple from Section 168(k). The remaining states have partial decoupling, electable conformity, or no state income tax. State conformity changes as state legislatures act on OBBBA, so verify current status against each state's most recent guidance.
Rolling-conformity states (full conformity)
States with rolling conformity to the Internal Revenue Code automatically follow OBBBA bonus depreciation at the state level. Examples include Alabama, Alaska, Colorado, Delaware, Kansas, Missouri, Montana, North Dakota, Oklahoma, Oregon, Tennessee (corporate F&E), Utah.
Federal 100% bonus depreciation flows through to state taxable income without addback. The full benefit applies at both federal and state levels.
Fully decoupled states
California, New York, New Jersey, Massachusetts, Hawaii, Connecticut: full decoupling from Section 168(k). The state requires an addback of the federal bonus depreciation deduction and recomputes depreciation on state rules.
California's IRC conformity date is January 1, 2025 EXCLUDING OBBBA. Section 168(k) is not allowed at the state level. State Section 179 cap is $25,000.
Partially decoupled states
Many states have partial conformity or specific addback rules: Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Kentucky, Maine, Maryland, Michigan, Minnesota, Mississippi, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Virginia, West Virginia, Wisconsin.
Treatment varies. Minnesota requires 80% addback over 5 years. Maryland has a $25K Section 179 conformity rule. Each state has its own mechanic.
No state income tax
Florida (no personal income tax), Nevada, South Dakota, Tennessee (no personal), Texas (no personal), Washington (no income tax), Wyoming. Federal bonus depreciation flows through without state-level analysis for individual investors.
Some of these states (Florida, Tennessee) have corporate income tax with their own conformity rules. Verify by entity type.
Frequently asked questions
- How does WeCostSeg coordinate with my CPA?
- Every engagement follows the three-touch CPA Coordination Protocol. Preliminary analysis CC'd to your CPA on intake, draft report shared five business days before final delivery, and Form 3115 filing coordinated when a Section 481(a) adjustment applies.
- Does OBBBA's 100% bonus apply to my acquisition?
- 100% applies to property under a binding contract on or after January 20, 2025 per Public Law 119-21. Property under a binding contract on or before January 19, 2025 stays on the legacy phase-down: 40% in 2025, 20% in 2026, 0% in 2027 and after.
- Is audit defense included?
- Yes. Every WeCostSeg engagement includes five years of written audit defense at no extra charge, aligned to the 13 Principal Elements of a Quality Cost Segregation Study under IRS Publication 5653 Chapter 4.
- Can I get a free preliminary analysis?
- Yes. Submit property details via the free proposal form or WhatsApp. Engineer-reviewed estimate returned within four business hours during US Eastern hours.
Zawwad Ul Sami, Founder
Zawwad Ul Sami is the founder of WeCostSeg, a founder-led cost segregation firm serving real estate investors across the US. He focuses on strategy, pricing, and the firm's overall direction.