CT-242: Claim for Conservation Easement Tax Credit (2025)
New York · NY DTF · Used for tax years 2025
Form CT-242 is used by corporations to claim New York’s conservation easement tax credit 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 as an overpayment to the next tax year.
Who files this form
Form CT-242 is for corporations claiming the conservation easement tax credit. 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 and complete the partnership information in Part 3.
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, the allocated allowable real property taxes and other real property tax credits.
- Each easement’s address, conservation agency name, recording information, date of conveyance, and DEC identification number.
- If claiming a credit allocated from a partnership, the partnership’s name, EIN, and allocated credit amount.
- Your tax due before credits, tax 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.
- Complete Part 1 to calculate the credit, including any credit allocated from partnerships.
- Complete Part 2 to calculate the credit used and any unused amount you want refunded or applied to next year’s tax.
- Complete Part 3 for partnership credit 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.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Do not leave the tax period blank. The form says all filers must enter beginning and ending dates.
- Do not file CT-242 by itself. The form directs you to file it with Form CT-3 or CT-3-A.
- If claiming the credit as a corporate partner, remember to mark an X in box A.
- If the result on line 9 is zero or less, enter 0.
- Remember to enter the amounts from lines 10, 12, and 13 on your franchise tax return.
Questions people ask
How is the credit calculated for each conservation easement?
Multiply the allocated allowable real property taxes in column A by 25% for column B. Subtract other real property tax credits in column C from column A for column D. Enter the lesser of column B or column D in column E.
What limit does the form place on the total credit?
Line 4 limits the total credit to the lesser of the amount on line 3 or $5,000. Part 2 then calculates how much credit you can use this tax year.
Can I receive a refund for unused credit?
Yes. Line 11 calculates the unused credit available for refund. Enter the amount you want refunded on line 12. Line 13 shows the remaining amount to apply as an overpayment to next year’s tax.
How do I report credit allocated from a partnership?
Enter the partnership’s name, EIN, and allocated credit amount in Part 3. Enter the total on line 14 and carry it to line 2. Corporate partners claiming the credit must also mark an X in box A.