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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
Alabama Ala. Code § 40-18-24.4
Arizona Ariz. Rev. Stat. Ann. § 43-1014
Arkansas Ark. Code Ann. § 26-65-101
California Cal. Rev. & Tax Code § 19900
Colorado Colo. Rev. Stat. § 39-22-340
Connecticut Conn. Gen. Stat. § 12-699
Georgia Ga. Code Ann. §§ 48-7-21(b)(7)(C) and 48-7-23(b)
Idaho Idaho Code Ann. § 63-3026B
Illinois 35 Ill. Comp. Stat. 5/201(p)
Kansas Kan. Stat. Ann. § 79-32,286
Louisiana LA. Rev. Stat. Ann. § 47:287.732.2
Maryland Md. Code Ann. Tax-Gen. § 10-102.1
Massachusetts Mass. Gen. Laws Ann. ch. 63D
Michigan Mich. Comp. Laws §§ 206.254 and 206.675
Minnesota Minn. Stat. § 289A.08(7a)
Mississippi Miss. Code. Ann. § 27-7-26
Missouri Mo. Rev. State. § 143.436
New Jersey N.J. Stat. Ann. § 54A: 12-3
New Mexico N.M. Stat. Ann. § 7-3A-10
North Carolina N.C. Gen. Stat. §§ 105-131.1A and 105-154.1
Ohio Ohio Rev. Code Ann. § 5747.38
Oklahoma Okla. Stat. Ann. § 68.2355.1P-4
Oregon 2021 Or. Laws Ch. 589 (S.B. 727)
Rhode Island 44 R.I. Gen. Laws Ann. § 44-11-2.3
South Carolina S.C. Code Ann. § 12-6-545(G)
Utah Utah Code § 59-10-1403.2
Virginia Va. Code Ann. § 58.1-390.3
Wisconsin Wis. Stat. §§ 71.21(6) and 71.365(4m)

Includes all legislation enacted as of January 1, 2023.

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