IT-242: Claim for Conservation Easement Tax Credit (2025)
New York · NY DTF · Used for tax years 2025
New York Form IT-242 is used to claim the 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 identifyi
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.
Partners and beneficiaries who receive a share of the credit from a partnership, estate, or trust report that share on this form.
What you'll need
Have the following information ready to complete the form:
- Your name and identifying number as shown on your tax return.
- The allocated allowable real property taxes and other real property tax credits for each conservation easement.
- Each easement’s address, conservation agency name, recording information, conveyance date, and DEC identification number.
- If you received a share of the credit from a partnership, estate, or trust: the entity’s name, type, employer identification number, and your share of the credit.
- For fiduciaries allocating the credit: each beneficiary’s name as shown on Form IT-205, Schedule C, identifying number, and share of the credit.
How to file
Submit Form IT-242 with Form IT-201, IT-203, IT-204, or IT-205.
- Use Part 1 to calculate the credit for conservation easements. For each easement, multiply column A by 25%, subtract column C from column A, and enter the smaller result in column E.
- Complete Parts 2 and 3 if you received a share of the credit from a partnership, estate, or trust. In Part 2, use P for a partnership or ET for an estate or trust.
- Fiduciaries use Part 4 to report the beneficiaries’ and fiduciary’s shares.
- Calculate the credit in Part 5 and provide easement identifying information in Part 6.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Do not leave out amounts from additional Forms IT-242. Enter their column E total on line 1 and include it in line 2.
- Follow the special routing directions for fiduciaries: include line 2, plus line 5 if applicable, on the Total line of Part 4, column C.
- Do not apply the line 10 $5,000 limit to a partnership. The form specifically directs partnerships to enter the line 9 amount.
- Submit IT-242 with one of the tax returns listed on the form: IT-201, IT-203, IT-204, or IT-205.
Questions people ask
How much credit can I enter on line 10?
Enter the smaller of line 9 or $5,000. Partnerships instead enter the full line 9 amount.
Where do I report credit received from another entity?
List the partnership, estate, or trust in Part 2. In Part 3, enter your partnership credit share on line 3 and your estate or trust credit share on line 4. Add them on line 5.
What easement details does Part 6 require?
For each easement, provide the address, conservation agency name, recording information, date of conveyance in mmddyyyy format, and DEC identification number.
What extra information do fiscal-year filers enter?
Enter the beginning and ending dates of your tax period in the spaces provided.