CT-242: Claim for Conservation Easement Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form CT-242 is used by corporations to claim New York’s conservation easement tax credit and is filed with Form CT-3 or CT-3-A. It calculates the credit, including amounts allocated from partnerships, and reports how much is used, refunded, or applied to next year’s tax.
Who files this form
Corporations claiming the conservation easement tax credit use Form CT-242 and file it with Form CT-3 or CT-3-A.
If you are claiming the credit as a corporate partner, mark an X in box A.
What you'll need
Have the following information ready to complete the form:
- Your corporation’s legal name, employer identification number (EIN), and tax period beginning and ending dates.
- For each conservation easement: allowable real property taxes, allocated if applicable, and other real property tax credits.
- Each easement’s address, conservation agency name, recording information, conveyance date, and DEC identification number.
- If claiming a partnership allocation: the partnership’s name, EIN, and credit amount allocated to you.
- Your tax due before credits, credits claimed before this credit, and fixed dollar minimum tax.
How to file
File Form CT-242 with Form CT-3 or CT-3-A. The form does not provide a mailing address or e-filing directions.
- Complete Part 1 to calculate the credit, including any credit allocated from partnerships. Line 4 limits the total credit to $5,000.
- Complete Part 2 to calculate the credit used this year and any unused amount to be refunded or applied to next year’s tax.
- Complete Part 3 for partnership allocations and Part 4 for conservation easement identifying information.
- Enter the amounts from lines 10, 12, and 13 on your franchise tax return as directed.
Common mistakes
Follow these reminders printed on the form:
- All filers must enter the tax period beginning and ending dates.
- File CT-242 with Form CT-3 or CT-3-A, not by itself.
- Mark box A if claiming the credit as a corporate partner.
- On line 9, enter 0 if subtracting line 8 from line 7 gives zero or a negative amount.
- Enter the credit used, refund requested, and amount applied to next year’s tax on your franchise tax return as directed.
Questions people ask
How is the credit calculated for each easement?
Multiply the allowable real property taxes in column A by 25%. Separately, subtract other real property tax credits from column A. Enter the smaller of those two results in column E.
What is the total credit limit?
Line 4 limits the total credit, including partnership allocations, to $5,000. Part 2 then calculates how much you can use this tax year.
What happens to unused credit?
Line 11 calculates the unused credit available for refund. You can request a refund on line 12 and apply the remaining amount to next year’s tax on line 13.
Where do I report credit allocated from a partnership?
Enter the partnership’s name, EIN, and allocated credit in Part 3. Enter the total on line 14 and carry it to line 2. Also mark box A to show that you are claiming the credit as a corporate partner.