Sage Fixed Assets—State Tax Information

Many states have depreciation rules that differ from the federal rules. This is especially true following the passage of multiple economic stimulus packages over the last several years. For example, some states have adopted the federal provisions for immediate expensing under Section 179, others impose a lower limit than the federal amount, and some have fully decoupled from this federal provision.

To assist you in getting the information you need, we have provided the following overview of state rules. Because of the importance of the 2014 Federal depreciation changes, we indicate whether states conform to the 2014 Federal rules for Section 179 expensing and Section 168 bonus depreciation. This information is applicable to C-corporations. Check with the tax agency in your state(s) for full details. Links and phone numbers are shown for each state's agency.

Updated September 22, 2015


Alabama
Alabama Department of Revenue

http://www.ador.state.al.us
Phone: 800-322-4106 or 334-242-1170
Alabama does conform to Section 179 changes. Alabama does conform to bonus depreciation changes.


Alaska
Alaska's Tax Division

http://www.tax.state.ak.us
Phone:
Anchorage: (907) 269-6620
Juneau: 907-465-2320
Alaska does conform to Section 179 changes. Alaska does conform to bonus depreciation changes.


Arizona
Arizona Department of Revenue

http://www.azdor.gov
Phone: 602-255-3381
Arizona does conform to Section 179 changes. Arizona does not conform to bonus depreciation changes.


Arkansas
Arkansas Department of Finance & Administration

http://www.dfa.arkansas.gov
Phone: 501-682-4775
Arkansas allows up to $25,000 Section 179 expense deduction. Arkansas does not conform to bonus depreciation changes.


California
California Franchise Tax Board

http://www.ftb.ca.gov
Phone: 800-852-5711
California allows up to $25,000 Section 179 expense deduction. California does not conform to bonus depreciation changes.


Colorado
Colorado Department of Revenue

http://www.colorado.gov/tax
Phone: 303-238-SERV (7378)
Colorado does conform to Section 179 changes. Colorado does conform to bonus depreciation changes.


Connecticut
Connecticut Department of Revenue Services

http://www.ct.gov/drs
Phone: 800-382-9463 or 860-297-5962
Connecticut does conform to Section 179 changes. Connecticut does not conform to bonus depreciation changes.


Delaware
Delaware Department of Finance, Division of Revenue

http://revenue.delaware.gov
Phone: 800-292-7826 or 302-577-8205
Delaware does conform to Section 179 changes. Delaware does conform to bonus depreciation changes.


District of Columbia
DC Office of Tax and Revenue

http://otr.cfo.dc.gov
Phone: 202-727-4TAX (4829)
The District of Columbia allows up to $25,000 Section 179 expense deduction. The District of Columbia does not conform to bonus depreciation changes.


Florida
Florida Department of Revenue

http://dor.myflorida.com/dor/
Phone: 800-352-3671
Florida allows up to $128,000 Section 179 expense deduction. Florida does not conform to bonus depreciation changes


Georgia
Georgia Department of Revenue

http://www.dor.georgia.gov/income-tax
Phone: 877-GADOR11 (423-6711)
Georgia allows up to $500,000 Section 179 expense deduction - real property does not qualify. Georgia does not conform to bonus depreciation changes.


Hawaii
Hawaii Department of Taxation

http://www.state.hi.us/tax/
Phone:
Oahu: 800-222.3229
Hawaii: 808-974-6321
Maui: 808-984-8500
Kauai: 808-274-3456
Hawaii allows up to $25,000 Section 179 expense deduction. Hawaii does not conform to bonus depreciation changes.


Idaho
Idaho State Tax Commission

http://tax.idaho.gov
Phone: 800-972-7660 or 208-334-7660
Idaho does conform to Section 179 changes. Idaho does not conform to bonus depreciation changes.


Illinois
Illinois Department of Revenue

http://www.revenue.state.il.us
Phone: 800-732-8866 or 217-782-3336
Illinois does conform to Section 179 changes. Illinois does not conform to bonus depreciation changes made over the years, other than 100% bonus, which is allowed.


Indiana
Indiana Department of Revenue

http://www.in.gov/dor/4441.htm
Phone: 317-232-0129
Indiana allows up to $25,000 Section 179 expense deduction. Indiana does not conform to bonus depreciation changes.


Iowa
Iowa Department of Revenue

http://www.iowa.gov/tax/
Phone:
From Des Moines or out of state: 515-281-3114
From elsewhere in Iowa: 800-367-3388
Iowa does conform to Section 179 changes. Iowa does not conform to bonus depreciation changes.


Kansas
Kansas Department of Revenue

http://www.ksrevenue.org/
Phone: 785-368-8222
Kansas does conform to Section 179 changes. Kansas does conform to bonus depreciation changes.


Kentucky
Kentucky Department of Revenue

http://revenue.ky.gov
Phone: 502-564-8139
Kentucky allows up to $25,000 Section 179 expense deduction. Kentucky does not conform to bonus depreciation changes.


Louisiana
Louisiana Department of Revenue

http://www.rev.state.la.us
Phone: 225-219-7642
Louisiana does conform to Section 179 changes. Louisiana does conform to bonus depreciation changes.


Maine
Maine Revenue Services

http://www.state.me.us/revenue/homepage.html
Phone: 207-624-9670
Maine does conform to Section 179 changes. Maine does not conform to bonus depreciation changes.


Maryland
Comptroller of Maryland

http://www.comp.state.md.us
Phone: 800-MD-TAXES (638-2937) or 410-260-7980 from Central Maryland
Maryland allows up to $25,000 Section 179 expense deduction. Maryland does not conform to bonus depreciation changes.


Massachusetts
Massachusetts Department of Revenue

http://www.mass.gov
Phone: 800-392-6089 (Toll free in Massachusetts) or 617-887-MDOR (6367)
Massachusetts does conform to Section 179 changes. Massachusetts does not conform to bonus depreciation changes.


Michigan
Michigan Department of Treasury

http://www.michigan.gov/treasury
Phone: 517-373-3200
Michigan does conform to Section 179 changes. Michigan does not conform to bonus depreciation changes.


Minnesota
Minnesota Department of Revenue

http://www.taxes.state.mn.us
Phone: 651-556-3075
Minnesota allows up to $25,000 plus 20% of the additional Federal Section 179 expense deduction; the remainder is deducted evenly over the following five years. Minnesota requires 80% of the bonus depreciation to be added back in current year; the add-back amount is deducted evenly over the following five years.


Mississippi
Mississippi Department of Revenue

http://www.dor.ms.gov
Phone: 601-923-7000
Mississippi does conform to Section 179 changes. Mississippi does not conform to bonus depreciation changes.


Missouri
Missouri Department of Revenue

http://www.dor.mo.gov/tax/business
Phone: 573-751-4541
Missouri does conform to Section 179 changes. Missouri does conform to bonus depreciation changes.


Montana
Montana Department of Revenue

http://www.mt.gov/revenue
Phone: 866-859-2254 or 406-444-6900 in Helena
Montana does conform to Section 179 changes. Montana does conform to bonus depreciation changes.


Nebraska
Nebraska Department of Revenue

http://www.revenue.state.ne.us
Phone: 800-742-7474 (Toll free in NE & IA) or 402-471-5729
Nebraska does conform to Section 179 changes. Nebraska does conform to bonus depreciation changes.


Nevada
Nevada does not impose a corporate income tax.

The State of Nevada does not participate in the administration of Federal Income Tax nor does it levy a State personal, business or corporate income tax.


New Hampshire
New Hampshire Department of Revenue Administration

http://www.nh.gov/revenue
Phone: 603-230-5000
New Hampshire allows up to $25,000 Section 179 expense deduction. New Hampshire does not conform to bonus depreciation changes.


New Jersey
New Jersey Division of Taxation

http://www.state.nj.us/treasury/taxation
Phone: 609-292-6400
New Jersey allows up to $25,000 Section 179 expense deduction. New Jersey does not conform to bonus depreciation changes.


New Mexico
New Mexico Taxation and Revenue Department

http://www.tax.newmexico.gov
Phone: 505-827-0825
New Mexico does conform to Section 179 changes. New Mexico does conform to bonus depreciation changes.


New York
New York State Department of Taxation and Finance

http://www.tax.ny.gov
Phone: 518-485-6027
New York does conform to Section 179 changes. New York does not conform to bonus depreciation changes.


North Carolina
North Carolina Department of Revenue

http://www.dor.state.nc.us
Phone: 877-252-3052
North Carolina allows up to $25,000 with addition required for 85% of the difference between Federal limitation and North Carolina limitation. North Carolina requires 85% of the bonus depreciation to be added back in current year; the add-back amount is deducted evenly over the following five years.


North Dakota
North Dakota Office of State Tax Commissioner

http://www.nd.gov/tax/
Phone: 701-328-1249
North Dakota does conform to Section 179 changes. North Dakota does conform to bonus depreciation changes.


Ohio
Ohio Department of Taxation

http://www.tax.ohio.gov
Phone: 888-405-4039
Ohio allows up to the amount allowed by the IRC as of 12/31/2002 (generally $24,000) plus 1/6 of additional Federal Section 179 expense deduction; the remainder is deducted evenly over the following five years. Ohio requires 5/6 of the bonus depreciation to be added back in current year; the add-back amount is deducted evenly over the following five years.


Oklahoma
Oklahoma Tax Commission

http://www.oktax.state.ok.us
Phone: 405-521-3160
Oklahoma does conform to Section 179 changes. Oklahoma does conform to bonus depreciation changes.


Oregon
Oregon Department of Revenue

http://www.oregon.gov/DOR
Phone: 503-378-4988, In State: 800-356-4222
Oregon does conform to Section 179 changes. Oregon does conform to bonus depreciation changes.


Pennsylvania
Pennsylvania Department of Revenue

http://www.revenue.state.pa.us
Phone: 717-787-1064
Pennsylvania does conform to Section 179 changes. Pennsylvania does not conform to bonus depreciation changes.


Rhode Island
Rhode Island Division of Taxation

http://www.tax.state.ri.us
Phone: 401-574-8935
Rhode Island does conform to Section 179 changes. Rhode Island does not conform to bonus depreciation changes.


South Carolina
South Carolina Department of Revenue

http://www.sctax.org
Phone: 803-898-5000
South Carolina does conform to Section 179 changes. South Carolina does not conform to bonus depreciation changes.


South Dakota
South Dakota Department of Revenue and Regulation

http://www.state.sd.us/drr2
Phone: 800-TAX-9188
There is no personal or corporate income tax in South Dakota.


Tennessee
Tennessee Department of Revenue

http://www.state.tn.us/revenue
Phone: 800-342-1003 or 615-253-0600
Tennessee does conform to Section 179 changes. Tennessee does not conform to bonus depreciation changes.


Texas
Texas Online

http://www.window.state.tx.us/taxes/
Phone: 800-252-5555 or 512-463-4600
There is no corporate income tax in Texas.


Utah
Utah State Tax Commission

http://tax.utah.gov
Phone: 800-662-4335 or 801-297-2200
Utah does conform to Section 179 changes. Utah does conform to bonus depreciation changes.


Vermont
Vermont Department of Taxes

http://www.state.vt.us/tax
Phone: 802-828-5723
Vermont does conform to Section 179 changes. Vermont does not conform to bonus depreciation changes.


Virginia
Virginia Department of Taxation

http://www.tax.virginia.gov
Phone: 804-367-8037
Virginia does conform to Section 179 changes. Virginia does not conform to bonus depreciation changes.


Washington
http://dor.wa.gov
Phone: 800-647-7706
Washington does not impose a corporate income tax.

West Virginia
West Virginia State Tax Department

http://www.wvrevenue.gov
Phone: 304-558-3333 or 800-982-8297
West Virginia does conform to Section 179 changes. West Virginia does conform to bonus depreciation changes.


Wisconsin
Wisconsin Department of Revenue:

http://www.dor.state.wi.us
Phone: 608-266-2776
Wisconsin does conform to Section 179 changes. Wisconsin does not conform to bonus depreciation changes.


Wyoming
http://revenue.state.wy.us/
Wyoming does not impose a corporate income tax.
Phone: (307) 777-7961


Nexus: G-WEBCD3