Form IT-212-ATT: Claim for Historic Barn Rehabilitation Credit and Employment Incentive Credit (2026)
Last reviewed: 2025-10-29
Use the New York Tax Form Calculator Form IT-212-ATT — Claim for Historic Barn Rehabilitation Credit and Employment Incentive Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Form IT-212-ATT is the attachment to Form IT-212 used to claim the Historic Barn Rehabilitation Credit and the Employment Incentive Credit. It supplements your main investment credit form and is filed with your return when you place qualified property in service or meet employment growth tests under New York Tax Law §606(a).
The Historic Barn Rehabilitation Credit encourages preservation of agricultural barns built before 1936 and is claimed by individuals or entities that complete certified rehabilitation. The Employment Incentive Credit rewards increases in average New York employment after qualified investments have been made. Both credits require property located in New York and subject to recapture if disposed of early or used outside the state.
- Historic Barn Rehabilitation Credit: A refundable credit equal to 25% of qualified rehabilitation expenditures certified by the New York State Office of Parks, Recreation, and Historic Preservation. To qualify, the barn must have been built before 1936 and used for agricultural or related purposes. The rehabilitation cannot convert the barn to residential or office use. Attach the state certification letter with your IT-212-ATT.
- Employment Incentive Credit: A credit available for each of the two years following the year an investment credit property was placed in service. The rate is 1.5%, 2.0%, or 2.5% of the original investment credit amount depending on the percentage increase in average New York employment compared to the base period. Compute this using the detailed instructions on the form.
- Interaction with IT-212: The total credit from IT-212-ATT carries to the appropriate line on Form IT-212. The combined credit is limited to your current-year tax liability, with unused portions subject to carryforward rules.
- Recapture rules: If property generating the credit is disposed of, converted to non-qualified use, or moved outside New York within the statutory holding period, you must compute recapture and add it back as tax in the year of disposition.
- Record-keeping: Maintain cost details, employment data, certification documents, and schedules for all property that generated either credit. Auditors will verify qualified use and employment base calculations.
| Use this form to claim an investment credit for qualified expenditures in the rehabilitation of a historic barn, or to claim the employment incentive credit. Submit this form with Form IT-212. | |||||||||
| Schedule A – Historic barn rehabilitation credit | |||||||||
| Part 1 – Eligibility criteria for claiming this credit (see instructions, Form IT-212-ATT-I, for assistance) | |||||||||
| Complete questions 1 through 10 to determine if you are eligible to claim this credit. If you mark an X in the Yes box on line 1 or 6, or the No box on line 5, 9, or 10, stop; you cannot claim this credit. | |||||||||
| 1 | Has the barn been converted to residential use? (If you mark Yes, stop; you cannot claim this credit.) | | |||||||
| 2 | Is the barn listed in the National Register of Historic Places? (see instructions) If Yes, the barn’s rehabilitation must be certified by the federal Secretary of Interior or the New York State Office of Parks, Recreation and Historic Preservation. Submit a copy of the certification (see TSB-M-97(1)I). | | |||||||
| 3 | If you answered No to question 2, is the barn located in a registered historic district? | | |||||||
| 4 | If you answered Yes to question 3, is the barn of historic significance to the district? If Yes, the barn must be a certified historic structure, and the barn’s rehabilitation must be certified by the federal Secretary of Interior or the New York State Office of Parks, Recreation and Historic Preservation. Submit a copy of the certification. If No, submit documentation from the Office of Parks, Recreation and Historic Preservation stating the barn is of no historic significance to the district (see TSB-M-97(1)I). | | |||||||
| 5 | If you answered No to questions 2 and 3, was the barn originally designed and used for storing farm equipment or agricultural products or for housing livestock, and was the barn first placed into service before 1936? (If you mark No, stop; you cannot claim this credit.) | | |||||||
| 6 | Has the historic appearance of the barn been materially altered? (If you mark Yes, stop; you cannot claim this credit.) If No, submit a copy of the letter from the New York State Office of Parks, Recreation and Historic Preservation stating that the historic appearance of the barn has not been materially altered (see TSB-M-97(1)I). | | |||||||
| 7 | Describe the measurement period used to determine whether the barn has been substantially rehabilitated (See instructions.) | ||||||||
| 8 | 8 | ||||||||
| 9 | Do the expenditures incurred during the measurement period to rehabilitate the barn exceed the higher of the amount shown in question 8 or $? (If you mark No, stop; you cannot claim this credit.) | | |||||||
| 10 | Did you use the straight-line method of depreciation over a recovery period specified in either section 168(c) or section 168(g) of the Internal Revenue Code (IRC), whichever is applicable to you? (If you mark No, stop; you cannot claim this credit.) | | |||||||
| Part 2 – Investments in qualified rehabilitation expenditures | |||||||||
| Date rehabilitation work was begun (mmddyyyy) | Date rehabilitation work was completed (mmddyyyy) | ||||||||
| A Description of rehabilitation expenditures (submit additional sheets if necessary) | B Date of expenditure(s) | C Property’s useful life (years) | D Amount of expenditures | E Rehabilitation credit (column D × %) | |||||
| 11 | 11 | ||||||||
| Part 3 – Early dispositions of qualified property and addback of credit on early dispositions | |||||||||
| A Description of rehabilitation expenditures (submit additional sheets if necessary) | B Date acquired | C Date property ceased to qualify | D Property’s useful life (months) | E Unused life (months) | F Percentage (E ÷ D) | G Total investment credit allowed for rehabilitation of a historic barn | H Addback of credit on early dispositions (F × G) | ||
| 12 | 12 | ||||||||
| Schedule B – Employment incentive credit | |||||||||
| Part 1 – Eligibility for employment incentive credit | |||||||||
| A Year | B Mar. 31 | C June 30 | D Sept. 30 | E Dec. 31 | F Total (B + C + D + E) | G Average (see instr.) | H* Percent % | ||
| A. | Use with Part 2, line 17; first succeeding tax year | ||||||||
| 13 | Number of New York State employees in employment base year | ||||||||
| 14 | Number of New York State employees in credit year | ||||||||
| B. | Use with Part 2, line 18; second succeeding tax year | ||||||||
| 15 | Number of New York State employees in employment base year | ||||||||
| 16 | Number of New York State employees in credit year | ||||||||
| * Divide the average number of employees in the credit year by the average number of employees in base year (column G). Round the result to two decimal places. If the percentage in column H is less than % (), stop; you do not qualify for the employment incentive credit. | |||||||||
| Part 2 – Computation of employment incentive credit | |||||||||
| A Tax year in which investment tax credit was allowed | B Amount of investment credit base upon which original investment tax credit was allowed (exclude research and development (R&D) property at optional rate) | C Employment incentive credit (multiply column B by the appropriate rate from Tax rate schedule below) | |||||||
| 17 | Information for first succeeding tax year; use line 14, column H, to determine rate | ||||||||
| 18 | Information for second succeeding tax year; use line 16, column H, to determine rate | ||||||||
| 19 | 19 | ||||||||
| Tax rate schedule – Employment incentive credit rates to be used in Part 2 above If the percentage in Part 1, column H is at least: The employment incentive credit rate is: % but less than % .................................................................... % () of investment credit base % but less than % .................................................................... % () of investment credit base % .................................................................................................... % () of investment credit base | |||||||||
Historic Barn Rehabilitation Credit
Qualified rehabilitation expenses include costs directly related to restoring the structural integrity of the barn—foundation, frame, siding, and roof—but exclude painting, landscaping, or modern interior finishes. The project must preserve the barn’s historic character. The maximum credit is 25% of qualified expenditures; unused credit can be carried forward until fully used.
Example: You spend $80,000 restoring a pre-1936 barn certified as historic. Qualified expenses = $80,000 × 25% = $20,000 credit. If your 2025 tax liability is $15,000, you claim $15,000 this year and carry forward $5,000 to future years.
Employment Incentive Credit
To compute this credit, compare the average number of New York employees in the credit year with the average number in the base period (the three years before the property was placed in service). If your employment increases, you qualify for an incentive credit of:
- 1.5% of the original investment credit amount if employment increased ≥ 1 % but < 2 %,
- 2.0% if increase ≥ 2 % but < 3 %,
- 2.5% if increase ≥ 3 % or more.
Compute the average employment numbers using total hours or headcount, consistent across all years. Multiply your original IT-212 credit amount by the applicable percentage to determine this year’s incentive credit.
Example: You placed $500,000 of qualified property in service in 2024 and claimed a $20,000 IT-212 credit. Your average NY employment increased by 2.5 % in 2025; you qualify for a 2.0% employment incentive credit = $20,000 × 2.0% = $400 credit. Attach IT-212-ATT and carry the amount to IT-212 line 2.
Common Pitfalls & Audit Flags
1. Failing to attach the state certification for barn rehabilitation — credit will be disallowed.
2. Using unverified or rounded employment data — averages must be supported by payroll records.
3. Omitting recapture when property disposed — early disposition triggers mandatory add-back tax.
Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.
Strategic Planning
Combine credits efficiently: Align the rehabilitation project or employment growth with tax years that yield sufficient tax liability to maximize use of credits. Plan large capital investments so that employment increases are measurable within the two-year incentive window.
Document everything: Keep detailed invoices, photographs, and certification letters for barn projects and retain HR/payroll records for employment tests. Well-organized files prevent credit disallowance during audit.
Cross-form coordination: Ensure all IT-212-ATT entries match the main IT-212 form and carry to the correct lines of IT-201 or IT-203. Inconsistent reporting is a common cause of refund delays and adjustments.
Quick Access Tools
Frequently Asked Questions
Who qualifies to claim the QETC Capital Credit?
Individuals, corporations, and partnerships that invest in a certified QETC located in New York State may claim this credit. The investment must be in qualified stock or partnership interest held for at least four years.
Who qualifies for the MCTMT START-UP NY exemption?
Approved START-UP NY businesses operating in a designated tax-free area within the MCTD can exclude payroll paid for work performed in that area from the MCTMT base. Self-employed individuals (including partners) may exclude net earnings attributable to the tax-free area. See our guide: MCTMT — START-UP NY.
Can I offset Yonkers nonresident tax with credits on my NY return?
No — the Yonkers tax is a local levy and cannot be offset by NYS credits, but it may be deductible as a local tax on your federal return if you itemize.
Are HSA contributions deductible for New York tax?
No—unlike the federal system, New York does not allow an HSA deduction.
Can I claim both IT-112-C and a federal foreign tax credit?
Yes, but avoid double benefits. If you use Canadian tax to claim a federal FTC, reduce the NY credit computation accordingly. Walk-through: IT-112-C.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.