Cost Segregation by State: OBBBA Conformity in All 50 States
By Zawwad Ul Sami, Founder, WeCostSegPublished: 2026-05-14Last updated: 2026-05-14
OBBBA (Public Law 119-21) reinstated permanent 100% bonus depreciation at the federal level. State conformity is a different question. Some states automatically follow federal (rolling conformity). Others require taxpayers to add back federal bonus depreciation and depreciate the property on state rules. Each state page explains the treatment, the relevant statutes or guidance, and the practical workaround.
Expanded conformity
Conforms to federal bonus
Electable conformity
Conforms with addback-then-deduction mechanic
Partially decoupled (workaround available)
Fully decoupled
No state income tax
About the author
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.