Mike is a sole proprietor and resident of the fictional state of East Columbia. He receives business income from a business operated entirely within East Columbia. In $2023,$ Mike placed a new machine $($seven$-$year asset$)$ into service for his business. On his federal return, he claimed the $80\%$ special depreciation allowance. East Columbia does NOT conform to the federal special depreciation allowance.

Which of the following is most likely correct about Mike's East Columbia tax return?

On his $2023$ state return, Mike will:

Claim a smaller $2023$ depreciation deduction for state than for federal purposes.

Carry the $80\%$ federal special depreciation deduction through to the state return.

Claim no depreciation deduction and recover the difference through a state Credit for Unclaimed Depreciation.

Use the federal depreciable basis for the machine on the state return throughout the seven$-$year recovery period.