Form IT-252-I: Instructions for Form IT-252 Investment Tax Credit for the Financial Services Industry (Tax Year 2025)

Form IT-252 is the New York State form that financial services companies use to claim the Investment Tax Credit (ITC) tied specifically to their industry. The accompanying instructions, IT-252-I, walk taxpayers through the calculation and eligibility rules for tax year 2025. This credit exists because New York wants to encourage banks, brokerage houses, and other qualifying financial institutions to invest in tangible property and buildings used directly in their New York operations. If your business fits that description and made qualifying purchases during the year, this is the form the New York State Department of Taxation and Finance expects you to file alongside your regular income tax return.

Who Needs Form IT-252

This form is not for every business that buys equipment. It’s aimed at corporations and, in some cases, individuals or partners who are principally engaged in the financial services industry — think banking, lending, securities dealing, or similar regulated financial activities. If your company purchased or leased qualified property, such as buildings, structural components, or certain equipment used predominantly in New York for financial services operations, you may be entitled to a credit against your New York tax liability. Partnerships and S corporations that generate this credit pass it through to their partners or shareholders, who then use IT-252 to claim their share on their own returns.

It’s worth noting that this credit is distinct from the general business Investment Tax Credit available to other industries. The financial services version has its own eligibility rules, its own property definitions, and its own recapture provisions, so even taxpayers familiar with the standard ITC should read the IT-252-I instructions carefully before assuming the same rules apply.

When You Use This Form

You file Form IT-252 for the same tax year in which the qualifying property was placed in service. For tax year 2025, that means property acquired, constructed, or leased and put into use during the 2025 tax year in New York. The form also covers situations where previously claimed property is disposed of or stops being used in qualifying operations before the end of its required holding period — in those cases, you may owe a recapture of part of the credit you claimed earlier. The instructions include worksheets to help calculate both the original credit and any recapture amount, so taxpayers who sold or retired qualifying assets need to check this section even if they aren’t making a new claim this year.

Businesses that are part of a combined or consolidated filing group, or that hold interests in multiple pass-through entities generating this credit, will find specific guidance in the instructions about how to aggregate and report those amounts correctly on Form IT-252.

How to Get and Complete the Form

Form IT-252 and its instructions are published directly by the New York State Department of Taxation and Finance as a PDF. This is a paper-based form — there’s no fillable digital version, so you’ll need to download it, print it, and complete it by hand or with a typewriter before attaching it to your return. Because calculations involve percentages, carryover amounts, and potential recapture figures, it helps to work through the instructions line by line rather than jumping straight to the form itself.

Before starting, gather documentation on the cost basis of qualifying property, the date each asset was placed in service, and records showing how the property is used in your financial services operations. If you’re claiming a credit passed through from a partnership or S corporation, you’ll also need the Schedule K-1 or equivalent statement showing your allocated share.

New York publishes a range of specialized instruction booklets for industry-specific and situational tax credits like this one. If your filing situation touches on other niche New York tax matters, you might also want to look at the Empire State Film Production Credit instructions for a comparison of how industry-targeted credits are structured, or check the instructions for the separate tax on lump-sum distributions if you’re dealing with distribution income in the same filing year. Taxpayers who changed residency status during 2025 should also review the change of resident status instructions, since residency changes can affect how New York-source credits like this one are calculated and apportioned.

Once completed, Form IT-252 gets attached to your New York State return for the applicable entity type — whether that’s a corporate franchise tax return or a personal income tax return for individuals claiming a pass-through share. Keep a copy of the form and your supporting calculations, since the recapture provisions mean the Department may ask for documentation in a later tax year if qualifying property is sold or repurposed.