States with a tax substantially similar to PTET
For tax years beginning on or after January 1, 2021, resident partners, members, or shareholders are allowed a resident tax credit against their New York State personal income tax for any pass-through entity tax imposed by another state, local government, or the District of Columbia, that is substantially similar to the PTET imposed under Article 24-A [see Tax Law § 620(b)] paid by a partnership or New York S corporation to another jurisdiction on income derived from that jurisdiction and subject to tax under Article 22. This includes any taxes paid by an LLC treated as a partnership or S corporation for New York tax purposes.
The following is a current list of those states that impose a pass-through entity tax that is substantially similar to New York’s PTET.
| State | Specific state tax that qualifies | First tax year state qualifies as substantially similar to NYS PTET |
|---|---|---|
| Alabama | Ala. Code § 40-18-24.4 | 2021 |
| Arizona | Ariz. Rev. Stat. Ann. § 43-1014 | 2021 |
| Arkansas | Ark. Code Ann. § 26-65-101 | 2022 |
| California | Cal. Rev. & Tax Code § 19900 | 2021 |
| Colorado | Colo. Rev. Stat. § 39-22-340 | 2021 |
| Connecticut | Conn. Gen. Stat. § 12-699 | 2021 |
| Georgia | Ga. Code Ann. §§ 48-7-21(b)(7)(C) and 48-7-23(b) | 2022 |
| Hawaii | Haw. Rev. Stat. § 235-51.5 | 2023 |
| Idaho | Idaho Code Ann. § 63-3026B and § 63-022L | 2021 |
| Illinois | 35 Ill. Comp. Stat. 5/201(p) | 2021 |
| Indiana | Ind. Code § 6-3-2.1 | 2022 |
| Iowa | Iowa Code § 422.16C | 2022 |
| Kansas | Kan. Stat. Ann. § 79-32,286 | 2022 |
| Kentucky | Ky Rev. Stat. Ann. § 141.206 | 2022 |
| Louisiana | LA. Rev. Stat. Ann. § 47:287.732.2 | 2021 |
| Maryland | Md. Code Ann. Tax-Gen. § 10-102.1 | 2021 |
| Massachusetts | Mass. Gen. Laws Ann. ch. 63D | 2021 |
| Michigan | Mich. Comp. Laws §§ 206.254 and 206.675 | 2021 |
| Minnesota | Minn. Stat. § 289A.08(7a) | 2021 |
| Mississippi | Miss. Code. Ann. § 27-7-26 | 2022 |
| Missouri | Mo. Rev. State. § 143.436 | 2022 |
| Montana | Mont. Code Ann. § 15-30-3326 | 2023 |
| Nebraska | Neb. Rev. Stat. Ann. § 77-2727 | 2021 |
| New Jersey | N.J. Stat. Ann. § 54A: 12-3 | 2021 |
| New Mexico | N.M. Stat. Ann. § 7-3A-10 | 2022 |
| North Carolina | N.C. Gen. Stat. §§ 105-131.1A and 105-154.1 | 2022 |
| Ohio | Ohio Rev. Code Ann. § 5747.38 | 2022 |
| Oklahoma | Okla. Stat. Ann. § 68.2355.1P-4 | 2021 |
| Oregon | 2021 Or. Laws Ch. 589 (S.B. 727) | 2022 |
| Rhode Island | 44 R.I. Gen. Laws Ann. § 44-11-2.3 | 2021 |
| South Carolina | S.C. Code Ann. § 12-6-545(G) | 2021 |
| Utah | Utah Code § 59-10-1403.2 | 2022 |
| Virginia | Va. Code Ann. § 58.1-390.3 and § 58.1-332 | 2021 |
| West Virginia | West Va. Code § 11-21-3a | 2022 |
| Wisconsin | Wis. Stat. §§ 71.21(6) and 71.365(4m) | 2021 |
Includes all legislation enacted as of December 15, 2023.
Return to Pass-through entity tax (PTET).
