State conformity to the 2025 federal tax law

Last checked Nov 3, 2026

Public Law 119-21, enacted July 4, 2025, restored 100% bonus depreciation, raised section 179 expensing, brought back immediate expensing of domestic research costs, loosened the business interest limit, and added deductions for tips, overtime, car loan interest and people 65 and older. Whether those changes reach a state return depends on how the state follows the Internal Revenue Code, where its return starts, and what its legislature did since. Here is each state's answer, from the revenue agencies, statutes and session laws.

Rolling (22) Fixed date (21) Selective (5) No income tax (3)
The figure under a fixed-date state is the month and year of the Code it follows (12/25 means December 2025). States with only a corporate or franchise tax are shown by that tax. Click a state for its rules.

How many states follow each provision

Counts of states and DC. A state that starts from federal adjusted gross income and adds no deduction of its own gives no benefit for the deductions taken after it, so those count as not allowed. States with no income tax are left out of the counts.

Provision	Follows federal	Modified	Decoupled or not allowed	Not determined
Bonus depreciation, section 168(k)	15	2	30	1
Section 179 expensing	26	9	9	4
Domestic research costs, section 174A	17	11	14	6
Business interest limit, section 163(j)	25	3	14	6
Deduction for tips	7	5	26	4
Deduction for overtime	5	5	27	5
Deduction for car loan interest	6	2	29	5
Deduction for seniors	5	2	27	8

Recent and coming changes

Delaware Jan 1, 2031 Bonus and qualified production property decoupling sunsets: Delaware adopts the federal rules for property placed in service after December 31, 2030 (TIM 2025-2). source Public record
Georgia Dec 31, 2028 The overtime and tips exclusions are repealed and reserved. source Public record
Washington Jan 1, 2028 SB 6346 (chapter 238, Laws of 2026): 9.9 percent tax on individuals' Washington taxable income beginning January 1, 2028; Washington base income starts from federal adjusted gross income; the Code is the one as amended and in effect on January 1, 2026. The act took effect June 11, 2026, with some sections later. source Public record
Maine Jan 1, 2027 Opportunity zone addback applies to amounts invested after December 31, 2026. source Public record
Massachusetts Jan 1, 2027 Conformity to the section 163(j), 168(n), 179 and corporate opportunity zone changes begins. source Public record
New Mexico Jan 1, 2027 Corporate addbacks for bonus depreciation (sections 168(k) and 168(n)) and the 2025 business interest change begin (Laws 2026, ch. 69). source Public record
Rhode Island Jan 1, 2027 Section 163(j) depreciation add-back and section 1202 exclusion decoupled for tax years beginning on or after January 1, 2027. source Public record
Connecticut Nov 15, 2026 Penalty and interest waiver for added corporation business tax from the research decoupling ends for amounts still unpaid after the later of November 15, 2026 or the return's original due date. source Public record
Minnesota Sep 29, 2026 Department updated its bonus depreciation note (no addition for qualified production property). source Public record
District of Columbia Sep 25, 2026 The emergency act was in effect until March 3, 2026 and the temporary act was set to expire September 25, 2026; absent further legislation, the District then follows the federal provisions it had decoupled from (Attorney General opinion). source Public record
Illinois Jul 1, 2026 Public Act 104-0468 took effect July 1, 2026: section 1202 addback for tax years ending on or after December 31, 2026, and a second PTE tax base method for partnerships; the 2026 Schedule M will be updated. source Public record
Maryland Jul 1, 2026 Budget Reconciliation and Financing Act of 2026 (SB 284, Chapter 6): permanent decoupling from section 168(n) and a 20% limit on manufacturers' section 168(k) bonus depreciation, for taxable years beginning after December 31, 2025. source Public record
Texas Jun 21, 2026 Amended Rule 3.588 takes effect: from the 2026 report, depreciation in cost of goods sold follows the federal return, with a one-time net depreciation adjustment for earlier production assets. source Public record
Oregon Jun 5, 2026 SB 1507 (Oregon Laws 2026, chapter 142): from 2026, add back of bonus depreciation (property placed in service from 2026), car loan interest and section 1202 gain; Code date for non-taxable-income references moves to December 31, 2025; Oregon earned income credit raised to 14 percent (17 percent with a dependent under 3). source Public record
Oregon Jun 4, 2026 Referendum petition on SB 1507 failed: sufficient signatures were not submitted by the deadline source Public record
Georgia May 11, 2026 HB 463, Georgia Economic Growth and Tax Relief Act of 2026: overtime and cash tips exclusions of up to $1,750 each, rate cut to 4.99 percent and higher standard deduction, for taxable years beginning on or after January 1, 2026. source Public record
Virginia Feb 20, 2026 Eligible educator expense deduction reinstated for taxable year 2026 and later (House Bill 29, Chapter 7, and House Bill 30, Special Session I, Chapter 1). source Public record
District of Columbia Feb 18, 2026 Public Law 119-78 (H.J. Res. 142) disapproves the temporary conformity act (D.C. Act 26-217). source Public record
Alabama Jan 1, 2026 Act 2026-604: Alabama deduction for the overtime premium, up to $1,000 per taxpayer, for the 2026 to 2028 calendar years. source Public record
Colorado Jan 1, 2026 Overtime deduction addback begins: individuals add back the federal overtime deduction on the Colorado return. source Public record
Colorado Jan 1, 2026 Corporate addback of the federal deduction for foreign-derived deduction eligible income begins (HB25B-1002). source Public record
Colorado Jan 1, 2026 Standard or itemized deduction addback limit drops to $1,000 single and $2,000 joint for filers with adjusted gross income over $300,000. source Public record
Hawaii Jan 1, 2026 Act 35, SLH 2026: Code conformity date moves to December 31, 2025, with the Public Law 119-21 decisions above; applies to taxable years beginning after December 31, 2025. The 2026 forms and instructions that carry the new adjustments were not yet published when checked. source Public record
Illinois Jan 1, 2026 Section 168(n) qualified production property bonus depreciation is added back on Form IL-4562 for tax years beginning on or after January 1, 2026 (Public Act 104-0453). source Public record
Indiana Jan 1, 2026 Code date moves to January 1, 2026 for tax year 2026 (SEA 243, Sec. 6). source Public record
Indiana Jan 1, 2026 Indiana tips, overtime and car loan interest deductions apply for tax year 2026 only; they end unless extended in a later session. source Public record
Iowa Jan 1, 2026 2026 Iowa Acts, Senate File 2492, signed May 15, 2026: excludes net CFC tested income from the corporate income tax base, retroactive to tax years beginning on or after January 1, 2026. source Public record
Kentucky Jan 1, 2026 HB 757 (Acts Chapter 161) moves the Code date to December 31, 2025 and adds the PL 119-21 decouplings, for taxable years beginning on or after January 1, 2026. source Public record
Maine Jan 1, 2026 Section 174A addback percentage steps down: 70% for 2026, 50% for 2027, 30% for 2028, 10% for 2029. source Public record
Massachusetts Jan 1, 2026 Section 174A conformity begins (2022 to 2024 costs still amortized over five years). source Public record
Michigan Jan 1, 2026 Michigan tips and overtime deductions begin with tax year 2026 and end after tax year 2028. source Public record
South Carolina Jan 1, 2026 Act No. 110 of 2026 (H. 4216), signed March 30, 2026: from tax year 2026 the individual starting point becomes federal adjusted gross income, the federal standard and itemized deductions are not adopted, a South Carolina Income Adjusted Deduction is created, and rates become 1.99% and 5.21%. source Public record
Utah Jan 1, 2026 Corporate and individual income tax rate drops to 4.45% (S.B. 60, 2026 General Session, retrospective to January 1, 2026). source Public record
Vermont Jan 1, 2026 Section 1202 exclusion decoupled for Vermont (Act 164, Sec. 55a). source Public record
Indiana Jul 4, 2025 Qualified production property decoupling and the research catch-up addback apply retroactively; taxpayers who filed 2025 returns before the 2026 session may need to amend. source Public record
Arizona Jan 1, 2025 Laws 2026, chapter 140 (H.B. 4168): Code date January 1, 2026; tips, overtime and senior subtractions from 2025; car loan subtraction for 2025; 2026 additions and deduction changes. 2025 returns filed on the original forms may need amending; ADOR said it would provide guidance and waive penalties and interest for amendments filed by October 15, 2027. source Public record
California Jan 1, 2025 SB 1435 (Chapter 236, Statutes of 2026), enacted September 14, 2026: code maintenance after SB 711; the personal income tax law no longer follows IRC section 163(j), and California keeps its $3,400 EITC investment income limit; applies to taxable years beginning on or after January 1, 2025. source Public record

Every state

Follows: the federal rule applies. Modified: the state applies it with its own limits or its own version. Decoupled or No: the state does not follow it. ?: not determined from a primary source. n/a: the state has no tax it would apply to.

State	Method	Code date	Response	Bonus	179	174A	Interest limit	Tips	Overtime	Car loan	Seniors
Alabama	Rolling		Partly adopted	Follows	Follows	Follows	Follows	No	Modified	Follows	No
Alaska	Rolling		None yet	Follows	Follows	Follows	Follows	n/a	n/a	n/a	n/a
Arizona	Static	Jan 1, 2026	Adopted	Follows	Follows	Follows	Follows	Modified	Modified	Modified	Modified
Arkansas	Selective		None yet	Decoupled	Modified	?	?	?	?	?	?
California	Static	Jan 1, 2025	None yet	Decoupled	Modified	Decoupled	Decoupled	No	No	No	No
Colorado	Rolling		Partly adopted	Follows	Follows	Follows	Follows	Follows	No	Follows	Follows
Connecticut	Rolling		Partly adopted	Decoupled	Modified	Modified	Follows	?	?	?	?
Delaware	Rolling		Partly adopted	Decoupled	Follows	Modified	Follows	No	No	No	?
District of Columbia	Rolling		Decoupled	Decoupled	Modified	Decoupled	Decoupled	No	No	No	No
Florida	Static	Jan 1, 2026	Partly adopted	Decoupled	Modified	Decoupled	Decoupled	n/a	n/a	n/a	n/a
Georgia	Static	Jan 1, 2026	Partly adopted	Decoupled	?	Decoupled	Decoupled	Modified	Modified	No	?
Hawaii	Static	Dec 31, 2025	Partly adopted	Decoupled	Modified	Decoupled	Follows	Follows	No	No	No
Idaho	Static	Jan 1, 2026	Adopted	Decoupled	Follows	Modified	Follows	Follows	Follows	Follows	Follows
Illinois	Rolling		Decoupled	Decoupled	?	?	?	No	No	No	No
Indiana	Static	Jan 1, 2026	Partly adopted	Decoupled	Decoupled	Modified	Decoupled	Modified	Modified	Modified	No
Iowa	Rolling		Adopted	Follows	Follows	Follows	Follows	Follows	Follows	Follows	Follows
Kansas	Rolling		None yet	Follows	Follows	Follows	Decoupled	No	No	No	No
Kentucky	Static	Dec 31, 2025	Partly adopted	Decoupled	Decoupled	Decoupled	Decoupled	No	No	No	No
Louisiana	Rolling		None yet	Follows	Follows	Follows	Follows	?	?	?	?
Maine	Static	Dec 31, 2025	Partly adopted	Decoupled	Follows	Modified	Follows	No	No	No	No
Maryland	Rolling		Partly adopted	Decoupled	Decoupled	Decoupled	Decoupled	No	No	No	No
Massachusetts	Selective		Partly adopted	Decoupled	Modified	Modified	Modified	No	No	No	?
Michigan	Static	Jan 1, 2025	Decoupled	Decoupled	Decoupled	Decoupled	Decoupled	Modified	Modified	No	No
Minnesota	Static	May 1, 2026	Partly adopted	Decoupled	Follows	Modified	Follows	No	No	No	No
Mississippi	Selective		None yet	Modified	Follows	Modified	?	?	?	?	?
Missouri	Rolling		None yet	Follows	Follows	Follows	Follows	No	No	No	No
Montana	Rolling		None yet	Follows	Follows	Follows	Follows	Follows	Follows	Follows	Follows
Nebraska	Rolling		None yet	Follows	Follows	Follows	Follows	No	No	No	No
Nevada	no income tax		Not applicable	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
New Hampshire	Static	Dec 31, 2018	None yet	Decoupled	Decoupled	?	Decoupled	n/a	n/a	n/a	n/a
New Jersey	Selective		None yet	Decoupled	Modified	?	Follows	No	No	No	No
New Mexico	Rolling		Partly adopted	Modified	Follows	Follows	Modified	No	No	No	No
New York	Rolling		Decoupled	Decoupled	Follows	Decoupled	Follows	Modified	?	?	?
North Carolina	Static	Jul 5, 2025	Partly adopted	Decoupled	Decoupled	Decoupled	Follows	No	No	No	No
North Dakota	Rolling		None yet	Follows	Follows	Follows	Follows	Follows	Follows	Follows	Follows
Ohio	Static	Mar 5, 2026	Adopted	Decoupled	Decoupled	Follows	Follows	No	No	No	No
Oklahoma	Rolling		None yet	Follows	Follows	Follows	Follows	No	No	No	No
Oregon	Rolling		Partly adopted	Decoupled	Follows	Follows	Follows	Follows	Follows	No	No
Pennsylvania	Selective		Decoupled	Decoupled	Follows	Decoupled	Decoupled	No	No	No	No
Rhode Island	Rolling		Partly adopted	Decoupled	Modified	Decoupled	Decoupled	No	No	No	No
South Carolina	Static	Dec 31, 2024	None yet	Decoupled	Decoupled	Decoupled	Decoupled	No	No	No	No
South Dakota	Static	Jan 1, 2025	None yet	?	?	?	?	n/a	n/a	n/a	n/a
Tennessee	Rolling		None yet	Decoupled	?	?	?	n/a	n/a	n/a	n/a
Texas	Static	Jan 1, 2007	Partly adopted	Follows	Follows	Modified	?	n/a	n/a	n/a	n/a
Utah	Rolling		None yet	Follows	Follows	Follows	Follows	No	No	No	Modified
Vermont	Static	Dec 31, 2025	Partly adopted	Decoupled	Follows	Modified	Follows	No	No	No	No
Virginia	Static	Dec 31, 2025	Partly adopted	Decoupled	Decoupled	Decoupled	Modified	No	No	No	No
Washington	no income tax		Not applicable	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
West Virginia	Static	Dec 31, 2025	Adopted	Follows	Follows	Follows	Follows	No	No	No	No
Wisconsin	Static	Dec 31, 2022	None yet	Decoupled	Follows	Modified	Decoupled	No	No	No	No
Wyoming	no income tax		Not applicable	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a

Informational only, not tax advice. Many states act on federal changes each session, and a treatment can differ by tax year; open a state for the years and the source behind each answer.