IT-238: Claim for Rehabilitation of Historic Properties Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-238 is used to claim New York’s rehabilitation of historic properties credit. It reports historic property information, qualified rehabilitation expenditures, and credit amounts, including credits received from an entity, refunds, carryovers, and any credit recapture. It
Who files this form
Use Form IT-238 to claim the rehabilitation of historic properties credit. The form covers:
- Individuals, including sole proprietors, partnerships, and estates or trusts that earned the credit.
- Partners, shareholders of New York S corporations, and beneficiaries of estates or trusts receiving a share of the credit.
If you received a share of the credit or a share of credit recapture from a partnership, New York S corporation, estate, or trust, complete Part 2 with that entity’s information.
Do not use this form to claim the historic homeownership rehabilitation credit.
What you'll need
Have the information needed for the parts that apply to you:
- Your name and identifying number as shown on your tax return.
- For a credit you earned: the certified historic structure’s address, property type, project number, completion date, and qualified rehabilitation expenditures.
- For a credit or recapture passed through to you: the entity’s name, type, project number, and employer identification number, plus your share of the credit.
- Last year’s Form IT-238, if you have a credit carryover.
- Your tax due before credits and credits applied before this credit.
- For fiduciaries: beneficiaries’ names as shown on Form IT-205, Schedule C, identifying numbers, and credit shares.
- For recapture: the federal recapture amount on New York property and the federal and New York credits originally allowed.
How to file
File Form IT-238 with Form IT-201, IT-203, IT-204, or IT-205. The supplied form does not provide a mailing address or e-file directions.
All filers must answer line A. Then complete the parts that apply:
- Individual or sole proprietor who earned the credit: Parts 1, 5, and 6, plus Part 7 if applicable.
- Partnership that earned the credit: Parts 1 and 5.
- Fiduciary of an estate or trust that earned the credit: Parts 1, 4, 5, and 6, plus Part 7 if applicable.
- Partner, New York S corporation shareholder, or beneficiary receiving a passed-through credit: Parts 2, 3, 5, and 6, plus Part 7 if applicable. A fiduciary must also complete Part 4.
Common mistakes
- Using the wrong credit form: IT-238 specifically says not to use it for the historic homeownership rehabilitation credit.
- Skipping line A: All filers must complete it. Answer based on whether you earned the credit directly or received a share as a partner, shareholder, or beneficiary.
- Using the small-project calculation for other projects: Schedule B labels column C, which multiplies column B by 150%, for small projects only.
- Putting a fiduciary’s amounts on the wrong lines: Fiduciaries must include the line 2 and line 6 amounts on the Total line of Part 4, column C. Other filers transfer these amounts to lines 7 and 8, respectively.
Questions people ask
Can I use IT-238 for the historic homeownership rehabilitation credit?
No. The form specifically says not to use IT-238 for that credit.
What if my credit comes from a partnership, S corporation, estate, or trust?
Provide the entity information in Part 2 and enter your share of the credit in Part 3. The form specifies New York S corporations.
Where do I enter a credit carried over from last year?
Enter the carryover from last year’s Form IT-238 on line 11. Line 12 adds that carryover to your current-year credit.
Does the form include a refund or carryover calculation?
Yes. Part 6 calculates the amount applied against this year’s tax, unused credit, the amount to be refunded, and the amount available to carry over to next year. The refund line also directs you to the instructions.
Where is credit recapture calculated?
Part 7 calculates recapture using the federal recapture amount on New York property and the federal and New York credits originally allowed. The New York recapture amount on line 28 is also entered on line 14.