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

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

This document contains official instructions for Form IT-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 IT-242 is available for download through this link.

FAQ

Q: What is Form IT-242?
A: Form IT-242 is a tax form used to claim the Conservation Easement Tax Credit in New York.

Q: What is a Conservation Easement?
A: A conservation easement is a voluntary legal agreement between a landowner and a qualified organization to protect natural resources and limit future development on the land.

Q: Who can claim the Conservation Easement Tax Credit?
A: Landowners who have donated a qualified conservation easement to a qualified organization can claim the tax credit.

Q: How much is the Conservation Easement Tax Credit?
A: The tax credit is equal to 25% of the fair market value of the donated easement, up to a maximum of $5 million.

Q: What are the requirements to claim the tax credit?
A: To claim the tax credit, you must have received a Certificate of Tax Credit from the New York State Department of Environmental Conservation.

Q: When is the deadline to file Form IT-242?
A: The deadline to file Form IT-242 is the same as the deadline for filing your state income tax return, usually April 15th.

Q: Can I claim the Conservation Easement Tax Credit on my federal tax return?
A: No, the Conservation Easement Tax Credit can only be claimed on your New York state income tax return.

Q: Are there any additional forms or documentation required?
A: Yes, you will need to include a completed Form IT-242 with your state income tax return, as well as the Certificate of Tax Credit issued by the Department of Environmental Conservation.