States that do not follow 100% bonus depreciation

Only states whose revenue department we read are listed.

• North Carolina: add back 85% for 2025, then deduct 20% a year for five years from 2026.
• New York: separate depreciation schedule for 168(k) property on Form IT-398 (CT-399 for corporations); also decoupled from the qualified production property write-off.
• Oregon: disallows bonus depreciation from tax year 2026 under SB 1507, subject to a referendum petition.
• Pennsylvania: does not follow federal bonus depreciation.
• South Carolina: specifically does not adopt the 2025 section 168(k) changes.
• Tennessee (excise tax): stays on the TCJA phase-down, 40% for 2025 assets and 20% for 2026, with the excess added back on Schedule J.
• Virginia: bonus depreciation remains an existing exception; also deconforms from 168(n) and the higher section 179 limits.
• Wisconsin: does not follow any bonus depreciation enacted after January 1, 2014, but does follow federal section 179.
• Rhode Island: decouples from the higher section 179 limits and the 174A expensing for 2025.
• Nebraska: rolling conformity; the DOR expects the federal expensing changes to reduce Nebraska tax for pass-through owners.

Every add-back state needs a second fixed asset ledger, or at least a state column, so the later recovery deductions are not lost. Set it up when the asset is bought rather than reconstructing it in five years.