At this time, the changes are directed to gain deferrals 2021 and later, and relate solely to decoupling from the deferral of the invested capital gain to 2026 for New York tax purposes. At this time, New York has not decoupled from the 10+ year hold step-up, but note that this could come at a later date.
You would certainly see a lower level of OZ investment in New York, though I imagine developers and entrepreneurs will try to take advantage of the benefit for projects that would've happened anyway.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.