Yes, there are several states that do not conform, including California. You can still take advantage of the federal benefits regardless.
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Are there still states that do not conform to the federal Opportunity Zone program?
Which states do not? What happens if I move into one of those states in the middle of the tax year and I have invested in several QOFs?
Answers
The most prominent states that do not conform are California and New York (for post-2020 gains), but there are at least two others that do not conform. What happens when you move into one of these states mid-year is an open question. If you are a tax resident of that state, your deferred gain presumably would be taxable in that state when it matures. When the 10-year benefit arrives, there would be questions as to whether you'd enjoy it at the state level.
You always get the federal tax benefits, regardless of state issues.
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