IT-242: Claim for Conservation Easement Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-242 is used to claim New York’s conservation easement tax credit. It calculates the credit using allowable real property taxes and other real property tax credits, reports shares received from partnerships, estates, or trusts, and records conservation easement identifying
Who files this form
Form IT-242 is used to claim the conservation easement tax credit. It includes sections for individuals, including sole proprietors, partnerships, and estates or trusts, as well as partners and beneficiaries receiving a share of the credit.
The form does not state the eligibility requirements for the credit.
What you'll need
Have the following information ready:
- Your name and identifying number as shown on your tax return. Fiscal-year filers also enter their tax period's beginning and ending dates.
- For each conservation easement: allowable real property taxes and other real property tax credits used in Part 1.
- Easement identifying information for Part 6: address, conservation agency name, recording information, date of conveyance, and DEC identification number.
- If you received a credit share from a partnership, estate, or trust: the entity's name, type, employer identification number, and your share of the credit.
- For fiduciaries completing Part 4: each beneficiary's name as shown on Form IT-205, Schedule C, identifying number, and share of the credit.
- Any additional Forms IT-242 whose column E amounts must be included in your totals.
How to file
Submit Form IT-242 with Form IT-201, IT-203, IT-204, or IT-205.
Complete the parts that apply to you:
- Part 1: Calculate the credit amounts for your conservation easements.
- Parts 2 and 3: Provide entity information and credit shares received from partnerships, estates, or trusts.
- Part 4: Allocate the credit between beneficiaries and the fiduciary, if applicable.
- Part 5: Calculate the conservation easement tax credit.
- Part 6: Enter identifying information for the conservation easements.
The supplied form text does not provide a mailing address or e-filing instructions.
Common mistakes
Follow these printed reminders carefully:
- Submit IT-242 with one of the tax returns listed on the form.
- Include column E amounts from additional Forms IT-242 on line 1, and include line 1 in the total on line 2.
- In Part 2, use P for a partnership and ET for an estate or trust.
- Fiduciaries must include line 2 and any applicable line 5 amount on the Total line of Part 4, column C, rather than following the transfer directions for other filers.
- On line 10, enter the lesser of line 9 or $5,000. Partnerships instead enter the line 9 amount.
Questions people ask
How is the amount for each easement calculated in Part 1?
Multiply column A, allowable real property taxes, by 25% to get column B. Subtract column C, other real property tax credits, from column A to get column D. Enter the lesser of column B or column D in column E.
What credit limit is printed on the form?
Line 10 directs filers to enter the lesser of the credit before limitation on line 9 or $5,000. Partnerships enter the line 9 amount instead.
What if I received a credit share from a partnership, estate, or trust?
Complete Part 2 for each entity. Enter partnership credit shares on line 3 and estate or trust credit shares on line 4, then add them on line 5. Follow the separate transfer directions for fiduciaries and other filers.
What identifying details are required for an easement?
Part 6 asks for the address, conservation agency name, recording information, date of conveyance in mmddyyyy format, and DEC identification number.