Instructions for Form CT-242 Claim for Conservation Easement Tax Credit - New York

Form CT-242 Claim for Conservation Easement Tax Credit - New York

This document contains official instructions for Form CT-242 , Claim for Conservation Easement Tax Credit - a form released and collected by the New York State Department of Taxation and Finance. An up-to-date fillable Form CT-242 is available for download through this link.

FAQ

Q: What is Form CT-242?
A: Form CT-242 is a form specific to New York State that is used to claim a conservation easement tax credit.

Q: What is a conservation easement?
A: A conservation easement is a legal agreement where a landowner agrees to restrict development on their property in order to protect its natural resources or cultural heritage.

Q: Who can claim the conservation easement tax credit?
A: Individuals, estates, trusts, and corporations who own land with a qualifying conservation easement in New York State can claim the tax credit.

Q: How is the conservation easement tax credit calculated?
A: The tax credit is generally equal to 25% of the fair market value of the easement, up to a maximum credit of $5 million.

Q: What documentation is required to claim the tax credit?
A: The claimant must provide a copy of the conservation easement, an appraisal report, and a completed Form CT-242.

Q: What is the deadline to file Form CT-242?
A: The form must be filed within 3 years from the original due date of the tax return for the year the credit is claimed.