Form IT-217: Claim for Farmers’ School Tax Credit (2026)

Q: How much income can be excluded on IT-221?

You may exclude up to <b>$5,000 ($10,000 for joint filers)</b> of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Q: Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does <b>not</b> allow an HSA deduction.

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-217 — Claim for Farmers’ School Tax Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form IT-217 is used by individual farmers, estates or trusts engaged in farming, or shareholders/beneficiaries of entities with qualified agricultural property, to claim the Farmers’ School Tax Credit under Tax Law §606(n). The credit covers eligible school-district property taxes paid on qualified agricultural property located in New York State.

Before completing the form, ensure you meet the eligibility tests in Part 1 (ownership of qualified agricultural property, business of farming, waiver agreements if applicable) and complete the applicable worksheets to compute the credit amount and check for recapture.

Who qualifies: You must be engaged in the business of farming (cultivation, operation or management for profit) or be a partner/shareholder/beneficiary in an entity that owns qualified agricultural property. Rental arrangements qualify only if the crop-share or participation tests are satisfied. See the instructions for details.
Qualified agricultural property: Land or land improvements located in New York State used in agricultural production (including honey, beeswax, maple syrup, cider from licenced farm-cidery, etc.). Property used recreationally or merely for logging typically does not qualify.
Eligible taxes: School-district real-property taxes paid on qualified agricultural property. Taxes levied by town, village or other municipal non-school district entities do not qualify. The amount must be reduced by any STAR credit claimed on the property.
Credit computation & limitation: Calculate the base acreage, eligible taxes, and conversion to nonqualified use. The credit may be limited if the federal gross income from farming or the New York share of acreage is below thresholds or if conversion to nonqualified use occurs. Recapture applies for converted property.
Recapture rules: If the qualified agricultural property is converted to non-qualified use, sold, or otherwise ceases to qualify during the two preceding tax years, you may owe recapture. Complete Part 6 of the form to compute the recapture amount.

Tax Law – Article 22, Section 606(a)
Note: Before completing this form, complete Form IT-201 through line 33, Form IT-203 through line 32, or Form IT-205 through line B.
Part 1 – Eligibility (see instructions)
If you mark an X in a No box for item A, B, C, or D, stop; you do not qualify for this credit.
A	Did you have qualified agricultural property for tax year 2017? (see instructions)						Yes No
B	Were eligible school district property taxes paid on that property during tax year 2017? (see instructions)						Yes No
C	Complete Worksheet A on page 3 of the instructions. Is the amount shown on line 6 of Worksheet A less than $300,000?						Yes No
D	Form IT-201 and Form IT-203 filers, complete Worksheet C on page 6 of the instructions. Form IT-205 filers, complete Worksheet D on page 9 of the instructions. Is the percentage shown on line 28 of Worksheet C or line 28 of Worksheet D at least 0.6667 (66.67%)? (see instructions)						Yes No
E	If you and one or more related persons (see instructions) each owned qualified agricultural property on March 1, 2017, mark an X here and see the instructions for Part 2, line 5
F	If all or part of your qualified agricultural property was converted to nonqualified use during tax year 2017, mark an X here (see instructions)
Part 2 – Computation of credit (see instructions)
1	Individuals: Enter the total acres of qualified agricultural property owned by you during tax year 2017 (see instructions)					1
2	Partners, S corporation shareholders, and beneficiaries of estates and trusts: Enter the amount from Part 4, line 7, column A					2
3	Fiduciaries: Enter fiduciary’s share of qualified agricultural property from Part 5, column C					3
4	Add lines 1, 2, and 3					4
5	Enter total base acreage amount (see instructions)					5
6	Subtract line 5 from line 4 (if zero or less, skip lines 7 and 8, enter 1.0000 (100%) on line 9, and continue on line 10)					6
7	Multiply line 6 by 50% (.5)					7
8	Add lines 5 and 7					8
9	Divide line 8 by line 4 and round the result to the fourth decimal place					9
10	Individuals: Enter the eligible school taxes you paid during 2017 (see instr.)				10
11	Partners, S corporation shareholders, and beneficiaries of estates and trusts: Enter the amount from Part 4, line 7, column B				11
12	Fiduciaries: Enter fiduciary’s share of eligible taxes from Part 5, column D				12
13	Add lines 10, 11, and 12					13
14	Multiply line 13 by line 9					14
15	Enter amount from Worksheet A, line 6, on page 3 of the instructions (if line 15 amount is $200,000 or less, skip lines 16, 17, and 18, and enter the line 14 amount on line 19; see instr.)				15
16	Enter the excess of line 15 over $200,000 (cannot exceed $100,000)				16
17	Divide line 16 by $100,000, and round the result to the fourth decimal place (cannot exceed 1.0000 (100%))					17
18	Multiply line 14 by line 17					18
19	Farmers’ school tax credit (subtract line 18 from line 14; see instructions)					19
Part 3 – Partnership, S corporation, and estate or trust information (see instructions)
If you were a partner in a partnership, a shareholder of a New York S corporation, or the beneficiary of an estate or trust that owned qualified agricultural property during 2017, complete the following information for each partnership, S corporation, or estate or trust. For Type column, enter P for partnership, S for S corporation, or ET for estate or trust
Name of entity		Type		Employer ID number		Location of property


Part 4 – Partner’s, shareholder’s, or beneficiary’s share of qualified agricultural property and eligible taxes (see instr.)					A – Acres of qualified agricultural property	B – Eligible taxes
Partner		1	Enter your share of acres of qualified agricultural property from your partnership
		2	Enter your share of eligible taxes from your partnership
S corporation shareholder		3	Enter your share of acres of qualified agricultural property from your S corporation
		4	Enter your share of eligible taxes from your S corporation
Beneficiary		5	Enter your share of acres of qualified agricultural property from the estate or trust
		6	Enter your share of eligible taxes from the estate or trust
		7	Totals
Fiduciaries: Include the line 7, column A amount, on Part 5, column C, and include the line 7, column B amount, on Part 5, column D. All others: Enter the line 7, column A amount, on Part 2, line 2, and enter the line 7, column B amount, on line 11.
Part 5 – Beneficiary’s and fiduciary’s share of acres of qualified agricultural property and eligible taxes (see instr.)
A – Beneficiary’s name		B – Identifying number		C – Acres of qualified agricultural property (see instructions)	D – Eligible taxes (see instructions)	E – Acres of qualified agricultural property converted to nonqualified use (see instructions)
Totals


Fiduciary
Part 6 – Credit recapture on qualified agricultural property converted to nonqualified use (Complete this part only if you first claimed a credit for 2015 or 2016. See instructions.)
A – Total acres of qualified agricultural property converted to nonqualified use (see instructions)		B – Total acres of qualified agricultural property before conversion (see instructions)		C – Column A ÷ column B	D – Total credit claimed for 2015 and 2016 (see instructions)	E – Total amount of 2015 and 2016 credit to be recaptured (column C × column D; see instr.)
						E

Computing the Credit

Step 1 – Complete Part 1 to demonstrate eligibility (ownership, farming business, waiver agreements if property is owned by family member who is the taxpayer, etc.).

Step 2 – In Part 2 you compute credit by entering total acres of qualified agricultural property, eligible school-district taxes paid, and apply the formula in the instructions. The credit amount is entered on line 19 of IT-217 and carried to your resident return (IT-201 line 37 or IT-203 line 32) or Form IT-201-ATT/IT-203-ATT.

Example: A farmer owns 100 acres of qualified agricultural property in New York and paid $4,000 in eligible school-district taxes after subtracting STAR. He satisfies the ownership and farming tests and no conversion occurred. The computed credit might be (depending on worksheets) e.g. $2,800, which reduces the state tax or produces a refund if refundable.

Recapture scenario: If 10 of the acres were sold for residential development in the current year, you must compute recapture in Part 6. The credit claimed for those acres in prior years must be added back to tax this year.

Carry-forward impact: If your credit exceeds your current tax liability, you may carry forward the unused portion per Tax Law instructions (see carry-forward rules in the instructions). Maintain detailed acreage, tax and usage schedules each year.

Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.

Planning & Audit Readiness

Maintain a detailed file of farm operations: acreage logs, tax bills, STAR credit reductions, crop-share or rental agreements, and farm income records. Auditors often verify whether the taxpayer genuinely engaged in farming and whether the property remained qualified and in use.

Before converting farmland to non-agricultural use (e.g., subdivision, residential development), assess the tax impact of recapture and lost credit future years. A careful timing strategy can reduce or eliminate recapture exposure.

If you own farmland but rent it, ensure the rental arrangement qualifies under the crop-share or participation tests. Review the lease terms each year and document hours worked or management decisions you make if required by the tests.

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Frequently Asked Questions

Does IT-203-ATT replace IT-112-R or IT-112-C?

No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.

How much income can be excluded on IT-221?

You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Can part-owners of a property claim IT-119?

Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.

Can I use IT-203-B to claim the NY College Tuition Deduction?

Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.

Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does not allow an HSA deduction.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.