Yes, the most recent version of the New York legislation is a total decoupling. Some deferral is grandfathered in, but to my recollection, the ten-year benefit in New York is out for everybody, including the early investors.
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What is the scope of New York’s decoupling from the OZ program?
It is my understanding that the state of New York has decoupled from the deferral benefit of investing in OZ Funds. Have they also decoupled from step-up after year 10 where any appreciation would be tax free?
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Your understanding is correct that for New York state income tax purposes an investor in a qualified opportunity fund (QOF) (i) can no longer defer gains invested in a qualified opportunity fund (QOF), but (ii) is still eligible to exclude gains on QOF interests held for at least 10 years.
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