Form IT-217: Claim for Farmers’ School Tax Credit (New York State) Tax Year 2025

Form IT-217 is how eligible farmers in New York State claim the Farmers’ School Tax Credit, a credit designed to offset school district property taxes paid on land used for agricultural production. If you own or lease qualified agricultural property and pay school taxes on it, this form lets you recover a portion of that expense when you file your New York State income tax return for 2025.

The credit exists because farmland owners often carry a disproportionate school tax burden relative to the income their land generates, especially in districts where property values have risen due to development pressure rather than farm profitability. New York created this credit to help keep agricultural land in production instead of pushing owners toward selling to developers.

Who Needs to File Form IT-217

You generally need this form if you’re an individual, partnership, or New York S corporation that owns qualified agricultural property and paid eligible school district taxes during the tax year. Qualified agricultural property typically includes land used in the business of farming, and there are minimum acreage and gross income thresholds tied to farm operations that the New York State Department of Taxation and Finance sets each year. Farmers who lease land to another farmer for agricultural production may also qualify, provided the lease meets specific conditions outlined in the form’s instructions.

If you’re a partner in a partnership or a shareholder in an S corporation that owns qualifying farmland, the credit typically flows through to you, and you’ll need information from the entity’s own Form IT-217 filing to complete your personal claim.

When You Should Use This Form

You file Form IT-217 along with your New York State personal income tax return for the year in which you paid the qualifying school taxes. For most farmers, that means attaching it to your Form IT-201 or IT-203 when you file for tax year 2025. The credit is calculated based on the school taxes paid on the eligible acreage during that specific tax year, so keeping accurate records of your tax bills and payment dates matters.

Timing also affects eligibility if you’ve recently purchased, sold, or changed the use of agricultural land. The form asks for details about acreage classification and any changes in property use, since converting farmland to non-agricultural purposes can affect your credit eligibility going forward.

How to Get and Complete Form IT-217

The form is available directly from the New York State Department of Taxation and Finance as a fillable PDF, which means you can type your information directly into the form fields before printing or submitting it electronically with your return. Before starting, gather your school tax bills, records of acreage used for farming, and any lease agreements if you’re claiming the credit based on leased land.

The form walks you through calculating your qualified agricultural property, applying acreage tests, and computing the actual credit amount based on school taxes paid. If you have multiple parcels or properties in different school districts, you’ll need to account for each one separately before arriving at your total credit.

Because agricultural tax credits often intersect with other state credits, it’s worth reviewing your full return for additional benefits you might qualify for. New York offers several refundable and non-refundable credits for residents, and if you’re also raising children or have earned income from farm wages, you might want to check whether you qualify for related credits such as the Earned Income Credit claimed through Form IT-215 or the child-related credit documented on Form IT-213-ATT.

If errors or omissions show up after filing, the state may request supporting documentation, so retain copies of your completed IT-217, school tax bills, and any lease agreements for at least three years. Filing this credit accurately the first time helps avoid delays in processing your refund or credit adjustment, particularly if your farm operation spans multiple parcels or involves shared ownership arrangements.