Form IT-641: Manufacturer’s Real Property Tax Credit (Tax Year 2025)

Form IT-641, issued by the New York State Department of Taxation and Finance, lets qualified manufacturers claim a credit against the real property taxes they pay on facilities used for manufacturing in New York State. It’s one of several targeted credits the state offers to keep manufacturing operations competitive, and it applies to both corporate franchise taxpayers and individuals (including partners and shareholders of pass-through entities) who meet the eligibility requirements.

The credit is worth 20% of the real property taxes paid during the tax year on manufacturing property owned or leased by the taxpayer. To qualify, you generally need to be classified as a “qualified New York manufacturer” — meaning your primary business activity involves manufacturing, processing, assembling, or a similar production-based activity, and you meet certain property or receipts thresholds set by the state. Eligible manufacturing real property must be principally used for manufacturing activities, not just administrative or storage purposes.

Who Needs to File Form IT-641

This form is relevant to:

• Corporations subject to Article 9-A that operate manufacturing facilities in New York and pay real property taxes on those facilities.
• Sole proprietors and individual taxpayers who own or lease qualifying manufacturing property.
• Partners, members of LLCs, and shareholders of S corporations that qualify as manufacturers, since the credit passes through to owners based on their share of the entity’s income.

If your business leases its manufacturing space rather than owning it, you may still qualify, provided the lease terms make you responsible for paying the real property taxes directly or through your rent.

When You Use This Form

Form IT-641 is filed along with your New York State income or franchise tax return for the year in which the real property taxes were paid. For tax year 2025, that means attaching it to the return you file covering that period, whether you’re on a calendar year or fiscal year basis. Since the credit is nonrefundable for corporations in most cases but refundable for certain individual taxpayers, it’s worth checking the current instructions to see how any unused credit carries forward or whether it can be refunded outright based on your filing status.

Manufacturers who also invest in production facilities or renovate older industrial buildings sometimes look into other property-related tax incentives at the same time. If your operation involves historic industrial buildings, for example, some businesses cross-reference programs like California’s State Historic Rehabilitation Tax Credit when they have multi-state operations, though that credit obviously only applies to California property. Within New York specifically, manufacturers operating in designated START-UP NY zones should also review Form IT-638, since businesses in those zones may stack additional tax elimination benefits with the real property credit.

How to Fill Out Form IT-641

The form itself is short but requires accurate supporting numbers. You’ll need to provide:

• Your business identification details, including EIN or SSN.
• A description and location of each qualifying manufacturing property.
• The amount of eligible real property taxes paid during the tax year, supported by tax bills or receipts.
• The calculation of the 20% credit based on those payments.

Because the form is a fillable AcroForm PDF, you can complete it directly on your computer using free PDF software, type in your figures, and then print or save it before attaching it to your return. Filling it digitally reduces errors compared to handwriting numbers, and it’s easier to keep a clean copy for your records in case the Department of Taxation and Finance requests documentation later.

Keep in mind this credit is specific to real property taxes on manufacturing facilities — it doesn’t cover equipment, machinery, or other business tax credits you might be claiming separately. If your business also produces creative content alongside manufacturing operations, or you’re evaluating multiple New York credits in the same filing season, it can help to compare this form against others like Form IT-642 to understand how New York structures its various industry-specific incentives.

Before submitting, double-check the current year’s instructions published alongside the form, since eligibility thresholds and credit percentages are occasionally adjusted by the state legislature. Filing accurately the first time avoids delays in processing your return or triggering a request for additional documentation from the state.