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New York State Department of Taxation and Finance

IT-217-I

Instructions for Form IT-217

Claim for Farmers’ School Tax Credit

Introduction

– horticultural specialties, including nursery

as soil preparation, veterinary services or

stock, ornamental shrubs and ornamental

farm labor. In addition, you are not

For tax years 1997 and thereafter, an

trees and ﬂowers

engaged in farming if you manage or

individual, estate or trust engaged in the

operate a farm for a salary or fee.

– livestock and livestock products, including

business of farming may be entitled to an

Furthermore, if you are cultivating or

cattle, sheep, hogs, goats, horses,

income tax credit for the amount of eligible

operating a farm for recreation or leisure

poultry, farmed deer, farmed buffalo,

school district property taxes paid on

(e.g., a hobby farm), you are not engaged

ostrich, emus, fur-bearing animals, milk,

qualiﬁed agricultural property. In addition, if

in the business of farming. Also, forestry

and eggs

a partnership (including a limited liability

and logging, including the growing of

company treated as a partnership), a New

– aquaculture products, including ﬁsh, ﬁsh

Christmas trees, is not farming unless the

York S corporation, or estate or trust is

products, water plants and shellﬁsh

products are used in the operation of a

engaged in the business of farming or

(provided the aquaculture products are

farm or are connected with an otherwise

owns qualiﬁed agricultural property, an

grown and raised as opposed to merely

qualifying farm operation as described

individual, estate or trust which is a

being harvested or caught)

above (i.e., the income from these

member or shareholder of the entity may

– honey and beeswax produced from your

operations is properly reportable on federal

be entitled to the credit. If the credit

own bees.

Schedule F).

exceeds the taxpayer’s tax for the year, the

– maple syrup and apple cider, provided

excess credit will be refunded, without

the income from these operations is

interest. For more information concerning

How to Claim the Credit

properly includable on federal Schedule

this credit, you may request a copy of

F, Proﬁt or Loss From Farming.

File Form IT-217 if you are an individual or

Publication 51, Questions and Answers on

the ﬁduciary of an estate or trust and you

New York State’s Farmers’ School Tax

You are also engaged in the business of

qualify for the farmers’ school tax credit.

Credit .

farming if you rent your farm property to

another person who uses the property in

General Information

agricultural production and the rental

A partnership or New York S corporation

arrangement meets one of the following

does not ﬁle Form IT-217. However, a

Purpose of Form

conditions:

partnership or S corporation must inform

Form IT-217 is used to determine if you are

its partners or shareholders of their share

– The amount of the rental is a crop share

eligible to claim the farmers’ school tax

of the qualiﬁed agricultural property and

(shared rental agreement); that is, the

eligible taxes.

credit and to determine the amount of the

amount of rent is based upon the actual

credit. If you are engaged in the business

production of the land, whether paid to

of farming (see below), complete Part I of

you in cash or in kind, or

How to File Your Claim Form

Form IT-217 to determine if you are eligible

– You have an arrangement with your

to claim the farmers’ school tax credit.

In order to claim the farmers’ school tax

tenant for your participation in the farm

credit you must ﬁle or have ﬁled a New

business and you meet one of the

You are engaged in the business of

York State return for 1997. If you are ﬁling

following four tests:

farming if you cultivate, operate or

this claim with your return, transfer the

Test 1 - You do any three of the

manage a farm for gain or proﬁt, even

amount on line 19 to the appropriate line

following: (1) pay or stand good for at

though the operation may not produce a

on Form IT-201, Form IT-203, or

least half of the direct costs of

proﬁt every year.

Form IT-205, and attach the form to your

producing the crop; (2) furnish at least

return. If you have previously ﬁled your

half of the tools, equipment and

You are also engaged in the business of

1997 return, send your completed

livestock used in producing the crop;

farming if you are a partner in a

Form IT-217 to:

(3) consult with your tenant; and (4)

partnership, a shareholder in a New York S

State Processing Center

inspect the production activities

corporation or the beneﬁciary of an estate

PO Box 61000

periodically.

of trust that operates or manages a farm

Albany NY 12261-0001

for gain or proﬁt.

Test 2 - You regularly and frequently

make, or take an important part in

Farming includes the operation or

Filling in Your Claim Form

making, management decisions

management of livestock, dairy, poultry,

substantially contributing to or affecting

The front of Form IT-217 for 1997 has

ﬁsh, fruit, fur-bearing animal, and vegetable

the success of the enterprise.

been designed to let us use the latest

(commonly referred to as truck) farms.

scanning and image-processing equipment.

Farming also includes the operation or

Test 3 - You work 100 hours or more

Rectangular boxes have been printed on

management of plantations, ranches,

spread over a period of 5 weeks or

the form to guide you in making your

ranges and orchards. For example, farming

Instructions For Form It-217 - Claim For Farmers' School Tax Credit - New York State Department Of Taxation And Finance - 1997

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