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 the Claim for Conservation Easement Tax Credit form for New York.

Q: What is the purpose of Form IT-242?A: The purpose of Form IT-242 is to claim a conservation easement tax credit in New York.

Q: Who should use Form IT-242?A: Individuals and corporations who have made a qualified conservation easement donation in New York can use Form IT-242.

Q: What is a conservation easement?A: A conservation easement is a legal agreement between a landowner and a qualified organization to protect the land's conservation values.

Q: What is the tax credit for conservation easement in New York?A: The tax credit for conservation easement in New York is 25% of the eligible amount, up to a maximum credit of $5 million.

Q: What are the eligibility requirements for the tax credit?A: To be eligible for the tax credit, the conservation easement must be donated to a qualified organization, and the donor must meet certain criteria set by the New York State Department of Environmental Conservation.

Q: Are there any deadlines for filing Form IT-242?A: Yes, Form IT-242 must be filed within three years from the due date of the tax return for the year in which the qualified conservation easement donation was made.

Q: Are there any additional documentation required?A: Yes, along with Form IT-242, you must also include a copy of the appraisal report, a copy of the completed federal Form 8283, and other supporting documentation as required.

Q: Can the tax credit be carried forward?A: Yes, any unused tax credit can be carried forward for up to 15 years.