What Credits Are Available on My New York Return?

New York offers a variety of tax credits that may reduce the amount of tax you owe or increase your refund. Some credits are refundable, meaning you may receive money back even if you do not owe tax. Others are nonrefundable and can only reduce your tax liability.

Depending on your situation, you may need to complete an additional form or enter information provided by an employer, partnership, S corporation, estate, or trust.

Path to this entry: New York State Return > Credits

What Credits Are Available?

You may qualify for one or more of the following New York credits:

• NY Long-Term Care Insurance Credit (Form IT-249)
• Volunteer Firefighters and Ambulance Workers Credit (Form IT-245)
• College Tuition Credit (Form IT-272)
• Noncustodial Parent New York Earned Income Credit (Form IT-209)
• Real Property Tax Credit (Form IT-214)
• Credit for Taxes Paid to a Province of Canada
• Credit for Taxes Paid to Another State
• New York Investment Credit (Form IT-212)
• New York Farmers' School Tax Credit (Form IT-217)
• Clean Heating Fuel Credit (Form IT-241)
• STAR Credit Advance Payment Reconciliation (Form IT-119)
• Historic Homeownership Rehabilitation Credit (Form IT-237)
• Solar Energy System Equipment Credit (Form IT-255)
• Nursing Home Assessment Credit (Form IT-258)
• Geothermal Energy System Credit (Form IT-267)
• Central Business District Toll Credit (Form IT-268)
• Pass-Through Entity Tax Credit (Form IT-653)
• Other Refundable Credits

NY Long-Term Care Insurance Credit (Form IT-249)

You may qualify for this credit if you paid premiums for a qualified long-term care insurance policy during the tax year.

You may need:

• Long-term care insurance statements
• Records showing the premiums you paid

Volunteer Firefighters and Ambulance Workers Credit (Form IT-245)

This credit may be available if you served as a qualifying volunteer firefighter or volunteer ambulance worker in New York.

Keep any certification or supporting records that verify your eligibility.

College Tuition Credit (Form IT-272)

If you paid qualified tuition expenses to an eligible college, university, or other postsecondary institution, you may qualify for either a credit or a deduction.

You may need:

• Form 1098-T
• Tuition billing statements
• Proof of payment

Noncustodial Parent New York Earned Income Credit (Form IT-209)

This refundable credit may be available if you:

• Have a qualifying child
• Paid required child support through the appropriate channels
• Meet New York's eligibility requirements

Because this credit can sometimes provide a larger benefit than the regular New York Earned Income Credit, it is worth comparing both options if you qualify.

Real Property Tax Credit (Form IT-214)

This credit may help homeowners and renters with lower incomes who pay property taxes or rent on their primary residence.

For tax year 2026, eligibility generally includes:

• Federal adjusted gross income of $18,000 or less
• New York residency for the entire year
• Occupying the same New York residence for at least six months
• Meeting the ownership or rental requirements for the property

For qualifying taxpayers:

• The maximum credit is generally $75 if everyone in the household is under age 65.
• The maximum credit can be as much as $375 if the taxpayer, spouse, or a claimed dependent is age 65 or older.

Credit for Taxes Paid to a Province of Canada

This credit helps prevent double taxation when the same income is taxed by both New York and a Canadian province.

You may need copies of provincial tax returns and proof of taxes paid.

Credit for Taxes Paid to Another State

If the same income was taxed by both New York and another state, you may qualify for a resident credit to reduce double taxation.

You may need:

• A copy of the other state's tax return
• Documentation showing the tax paid to the other state

New York Investment Credit (Form IT-212)

This credit may be available for certain business investments located in New York.

The credit amount is often reported from business records or provided by a partnership, S corporation, estate, or trust.

New York Farmers' School Tax Credit (Form IT-217)

Eligible farmers may be able to claim a credit for qualifying school taxes paid on agricultural property.

You may need:

• School tax receipts
• Agricultural property records

Clean Heating Fuel Credit (Form IT-241)

This credit may be available if you purchased qualifying bioheating fuel for residential heating purposes during the year.

Retain purchase records and receipts for your records.

STAR Credit Advance Payment Reconciliation (Form IT-119)

Taxpayers who received an advance STAR benefit may need to reconcile the payments they received with the benefit they were entitled to claim.

Form IT-119 is used to compare:

• STAR benefits received in advance
• STAR benefits actually allowed

Historic Homeownership Rehabilitation Credit (Form IT-237)

You may qualify if you completed approved rehabilitation work on an eligible historic residence in New York.

Keep all approval letters, certifications, contracts, and payment records.

Solar Energy System Equipment Credit (Form IT-255)

Homeowners who install qualified solar energy systems on a New York residence may be eligible for this credit.

Keep copies of:

• Installation contracts
• Invoices
• Proof of payment

Nursing Home Assessment Credit (Form IT-258)

Residents of nursing homes may qualify for this credit if nursing home assessment costs were passed through to them.

The nursing home generally provides the amount needed to claim the credit.

Geothermal Energy System Credit (Form IT-267)

This credit may be available for the purchase and installation of qualifying geothermal energy systems.

Keep installation records, invoices, and proof of payment with your tax documents.

Central Business District Toll Credit (Form IT-268)

Eligible taxpayers who paid qualifying tolls within designated New York Central Business District areas may qualify for this credit.

You should retain toll statements and payment records in case additional documentation is needed.

Pass-Through Entity Tax Credit (Form IT-653)

If you are an owner of a partnership or S corporation that elected to pay New York Pass-Through Entity Tax (PTET), you may be eligible for this credit.

The credit amount is generally reported on:

• Schedule K-1
• PTET statements
• Other tax documents provided by the entity

Enter the credit exactly as reported.

Other Refundable Credits

This section is used for refundable credits that do not have a dedicated entry elsewhere on the New York return.

These credits are commonly reported by:

• Partnerships
• S corporations
• Estates
• Trusts

Enter the credit amount exactly as shown on the supporting documentation provided by the entity.

Empire State Child Credit (Form IT-213)

New York's Empire State Child Credit may be available to full-year residents who have a qualifying child. For tax year 2026, the credit was expanded.

For 2026, the credit is generally:

• $1,000 per qualifying child under age 4
• $500 per qualifying child age 4 through 16

The credit begins to phase out once federal adjusted gross income exceeds:

• $110,000 for Married Filing Jointly
• $75,000 for Single, Head of Household, or Qualifying Surviving Spouse
• $55,000 for Married Filing Separately 

If any of the credit remains after reducing your tax liability, you can generally receive the remaining amount as a refund.

How Do Credits Affect My Return?

Depending on the credit, New York tax credits may:

• Reduce your New York tax liability
• Increase your refund
• Offset taxes owed
• Provide a refund even if you owe little or no tax

The impact varies based on your eligibility and the specific credit you claim.

Important Information

• Most credits require a separate form to be completed and submitted with your return.
• Some credits are refundable, while others only reduce the tax you owe.
• Certain credits require information from an employer, partnership, S corporation, estate, or trust.
• Keep supporting documentation with your tax records.
• Enter credit amounts exactly as reported on any supporting forms, schedules, or statements you receive.
• Review each credit's eligibility requirements carefully before claiming it.