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 (1975)|
|Arizona||Ariz. Rev. Stat. § 43-1014 [Eff. 1/1/2022]|
|Arkansas||Ark. Code Ann. § 26-65-01|
|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)|
|Louisiana||LA. Rev. Stat. Ann. § 47:287.732.2|
|Maryland||MD. Code Ann. Tax-Gen. § 10-102.1|
|Massachusetts||MA General Laws Chapter 63D|
|Michigan||Mich. Comp. Laws §§ 206.254 and 206.675|
|Minnesota||Minn. Stat. Ann. § 289A.08(7a)|
|New Jersey||N.J. Stat. Ann. § 54A: 12-3|
|North Carolina||N.C. Gen. Stat. §§ 105-131.1A and 105-154.1|
|Ohio||Ohio. Rev. Code Ann. § 5747.41|
|Oklahoma||Okl. Stat. tit. 68, § 2355.1P-1|
|Oregon||2021 Or. Laws Ch. 589 (S.B. 727)|
|Rhode Island||R.I. Gen. Laws § 44-11-2.3|
|South Carolina||S.C. Code Ann. § 12-6-545(G)|
|Wisconsin||Wis. Stat. §§ 71.21(6) and 71.365(4m)|
Includes all legislation enacted as of January 31, 2022.
Return to Pass-through entity tax (PTET).