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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 2013 Federal depreciation changes, we indicate whether states conform to the 2013 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 February 25, 2014
Alabama Alabama Department of Revenue http://www.ador.state.al.us Phone: (334) 242-1000 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 allows up to $250,000 Section 179 expense deduction. 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 $134,000 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.revenue.state.co.us Phone: (303) 238-7378 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 $250,000 Section 179 expense deduction. Florida does not conform to bonus depreciation changes
Georgia Georgia Department of Revenue http://www.etax.dor.ga.gov Phone: (404) 417-6391 Georgia allows up to $250,000 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 $20,000 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 $250,000 plus 20% of the additional Federal Section 179 expense deduction; the remainder is deducted evenly over the following five years. 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 allows up to $133,000 Section 179 expense deduction. Oregon does not 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 allow the 50% bonus deduction in 2010, but does allow the 100% deduction for assets PIS after 9/7/10.
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) 266-2772 Wisconsin allows up to $25,000 Section 179 expense deduction. 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