Depreciation - State Tax Information

Many states have depreciation rules that differ from the federal rules. This is especially true following the passage of the Job Creation and Worker Assistance Act of 2002. Some states decided to adopt the 30% depreciation allowance, and some decided to decouple from this federal provision. The new Jobs and Growth Tax Relief Reconciliation Act of 2003 includes provisions increasing the first-year depreciation allowance from 30% to 50%, and increasing the maximum Section 179 expense from $25,000 to $100,000. We've seen a significant number of states decouple from these provisions, and therefore, we recommend that you check with the tax agency in your state(s) to determine if your state(s) have adopted these new rules relating to depreciation.

------------------------------------------------------------------------------------------------- Once you've chosen your State, you will see specific information on whether or not your state has conformed to the depreciation provisions within the Job Creation and Worker Assistance Act of 2002 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, specifically the 30% or 50% first-year depreciation deduction and the increase in the maximum Section 179 expense. You will also be provided with a link to the tax agency for your state should you need to gather additional information.

Click here to launch State Tax Information in a separate window and learn about depreciation rules in your state(s)

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