State Tax Code Conformity - Corporate Income

A state’s conformity with the federal opportunity zones provisions is an important factor investors should consider. Investors in states that do conform with the federal opportunity zones provisions may receive state tax incentives similar to those available at the federal level. Conversely, investors residing in nonconforming states may be unable to defer and reduce state taxation on the initial gains invested in opportunity zones. Investors in these nonconforming states may also be required to recognize gain for state tax purposes on their eventual sale of the opportunity fund investment.

Legend

  Full Conformity - Rolling: The state automatically conforms to the current IRC as it is amended.
  Full Conformity - Adopted: The state conforms to the IRC as of a specific date that is after the enactment of the Opportunity Zones legislation.
  Limited Conformity: The state specifically conforms with Section 1400Z-2 of the IRC
  No Capital Gains Tax: Has no state income tax/generally does not tax capital gains.
  Nonconformity: The state conforms to the IRC as of specific date prior to the enactment of the Opportunity Zones legislation or the state has specifically decoupled from the Opportunity Zones provisions of the IRC.

The links in the map above take users to the relevant state information below, which is maintained by Novogradac & Company. Information is provided as a reference and the validity of the data cannot be guaranteed.

Alabama

IRC Conformity Status Limited Conformity
Authority

Ala. Code § 40-18-1.1

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Alaska

IRC Conformity Status Full Conformity - Rolling
Authority

Alaska Stat. § 43.20.300(a)

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Arizona

IRC Conformity Status Full Conformity - Adopted
Authority

Arizona H.B. 2757

Maximum Tax Rate - 2018 4.90 percent

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Arkansas

IRC Conformity Status Limited Conformity
Authority

Arkansas SB 196 (State code will be posted here once it’s updated) 

Maximum Tax Rate - 2018 6.50 percent

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California

IRC Conformity Status Nonconformity
Authority

Cal. Rev. & Tax. Cd. § 17024.5(a)(1)

Maximum Tax Rate - 2018 8.84 percent

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Colorado

IRC Conformity Status Full Conformity - Rolling
Authority

Colo. Rev. Stat. § 39-22-103(5.3)

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Connecticut

IRC Conformity Status Full Conformity - Rolling
Authority

Conn. Gen. Stat. § 12-213(a)(23)

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Delaware

IRC Conformity Status Full Conformity - Rolling
Authority

Del. Code Ann. 30 § 1901(10)

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District of Columbia

IRC Conformity Status Full Conformity - Rolling
Authority

D.C. Code Ann. § 47-1801.04(28)

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Florida

IRC Conformity Status Full Conformity - Adopted
Authority

Fla. Stat. § 220.03(1)(n)

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Georgia

IRC Conformity Status Full Conformity - Adopted
Authority

Ga. Code Ann. § 48-1-2(14)

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Hawaii

IRC Conformity Status Limited Conformity
Authority

Haw. Rev. Stat. § 235-2.3

Maximum Tax Rate - 2018 6.40 percent

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Idaho

IRC Conformity Status Full Conformity - Adopted
Authority

Idaho Code § 63-3004(a)

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Illinois

IRC Conformity Status Full Conformity - Adopted
Authority

ILCS Chapter 35 § 5/1501(a)(11)

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Indiana

IRC Conformity Status Full Conformity - Adopted
Authority

Ind. Code § 6-3-1-11

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Iowa

IRC Conformity Status Full Conformity - Adopted
Authority

Iowa Code § 422.32(1)(h)
Iowa Code § 422.3(5)(a)

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Kansas

IRC Conformity Status Full Conformity - Rolling
Authority

Kan. Stat. Ann. § 79-32,109(a)(1)

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Kentucky

IRC Conformity Status Full Conformity - Adopted
Authority

Ky. Rev. Stat. Ann. § 141.010(14)

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Louisiana

IRC Conformity Status Full Conformity - Rolling
Authority

La. Rev. Stat. Ann. § 47:287.701

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Maine

IRC Conformity Status Full Conformity - Rolling
Authority

Chapter 474

Maximum Tax Rate - 2018 8.93 percent

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Maryland

IRC Conformity Status Full Conformity - Rolling
Authority

Md. Code Ann. Tax-Gen. § 1-101(k)
Md. Code Ann. Tax-Gen. § 10-108
Md. Code Ann. Tax-Gen. § 10-305(d)(4)
Md. Code Ann. Tax-Gen. § 10-310
Maryland Administrative Release No. 38

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Massachusetts

IRC Conformity Status Full Conformity - Rolling
Authority

Mass. Gen. L. Chapter 63 § 1

Working Draft TIR 19-XX: Massachusetts Treatment of Investments in Qualified Opportunity Zones 

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Michigan

IRC Conformity Status Full Conformity - Adopted
Authority

Mich. Comp. Laws Ann. § 206.607(6)
Mich. Comp. Laws Ann. § 208.1111(3)

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Minnesota

IRC Conformity Status Full Conformity - Adopted
Authority

Minnesota H.F. 5

Maximum Tax Rate - 2018 9.80 percent

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Mississippi

IRC Conformity Status Nonconformity
Authority

 

Maximum Tax Rate - 2018 5.00 percent

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Missouri

IRC Conformity Status Full Conformity - Rolling
Authority

Mo. Rev. Stat. § 143.091

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Montana

IRC Conformity Status Full Conformity - Rolling
Authority

Mont. Code Ann. § 15-31-113

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Nebraska

IRC Conformity Status Full Conformity - Rolling
Authority

Neb. Rev. Stat. § 77-2714

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Nevada

IRC Conformity Status No Capital Gains Tax
Authority

 

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New Hampshire

IRC Conformity Status Nonconformity
Authority

N.H. Rev. Stat. Ann. Chapter 158 § 77-A:1

Maximum Tax Rate - 2018 8.20 percent

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New Jersey

IRC Conformity Status Full Conformity - Rolling
Authority

Notice: Federal Tax Cuts and Jobs Act (TCJA) – Opportunity Zones

Maximum Tax Rate - 2018 9.00 percent

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New Mexico

IRC Conformity Status Full Conformity - Rolling
Authority

NMSA 1978 § 7-2A-2(H)  

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New York

IRC Conformity Status Full Conformity - Rolling
Authority

N.Y. Tax Law § 208(9)

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North Carolina

IRC Conformity Status Nonconformity
Authority

N.C. Gen. Stat. § 105-130.5

Maximum Tax Rate - 2018 3.00 percent

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North Dakota

IRC Conformity Status Full Conformity - Rolling
Authority

N.D. Cent. Code § 57-38-01(5)

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Ohio

IRC Conformity Status No Capital Gains Tax
Authority

 

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Oklahoma

IRC Conformity Status Full Conformity - Rolling
Authority

Okla. Stat. 68 § 2353(2)

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Oregon

IRC Conformity Status Full Conformity - Adopted
Authority

Or. Rev. Stat. § 317.010(7)

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Pennsylvania

IRC Conformity Status Nonconformity
Authority

 

Maximum Tax Rate - 2018 9.99 percent

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Rhode Island

IRC Conformity Status Full Conformity - Rolling
Authority

R.I. Gen. Laws § 44-11-11

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South Carolina

IRC Conformity Status Full Conformity - Adopted
Authority

S.C. Code Ann. § 12-6-40(A)(1)(a)

Maximum Tax Rate - 2018 5.00 percent

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South Dakota

IRC Conformity Status No Capital Gains Tax
Authority

 

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Tennessee

IRC Conformity Status Full Conformity - Rolling
Authority

Tenn. Code Ann. § 67-4-2006

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Texas

IRC Conformity Status No Capital Gains Tax
Authority

Tex. Tax Code Ann. § 171.0001(9)

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Utah

IRC Conformity Status Full Conformity - Rolling
Authority

Utah Code Ann. § 59-7-101(19)

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Vermont

IRC Conformity Status Full Conformity - Adopted
Authority

Vermont H. 514

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Virginia

IRC Conformity Status Full Conformity - Adopted
Authority

Va. Code Ann. § 58.1-301(B)

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Washington

IRC Conformity Status No Capital Gains Tax
Authority

 

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West Virginia 

IRC Conformity Status Full Conformity - Adopted
Authority

W. Va. Code § 11-24-3(a)-(c)

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Wisconsin

IRC Conformity Status Full Conformity - Adopted
Authority

Wis. Stat. § 71.22(4)(k)

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Wyoming

IRC Conformity Status No Capital Gains Tax
Authority

 

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