Has each U.S. state also conformed to the Federal QOZ regulations for purposes of state taxes?
The QOZ tax laws are Federal tax provisions. Not all states conform to the Federal QOZ deferral rules. California and North Carolina are examples of states that do not currently conform. Beginning with tax year 2021, New York State and City no longer recognize the tax benefits afforded under the federal QOZ tax laws either. Some states may also have their own QOZ programs that may be beneficial.