Kansas Swine Facility Improvement Credit

Swine Facility Improvement Credit
K-38 Kansas Swine Facility Improvement Credit Rev. 8-19
K-38

KANSAS

190718

SWINE FACILITY IMPROVEMENT CREDIT

(Rev.	8-19)

For	the	taxable	year	beginning, _____________ ,	20 ____ ;	ending _________________ ,	20 ____ .
Name	of	taxpayer	(as	shown	on	return)	

Employer	ID	Number	(EIN)

PART A –SWINE FACILITY INFORMATION
1a.	 Qualified swine facility name and address/location:
______________________________________________
Name

______________________________________________
Physical location

______________________________________________
Mailing address

______________________________________________
City

State	

Zip	code

1b.	 Waste	Control	Permit	Number	 _____________________

2.	Type of ownership of qualified swine facility (check one):

o
o
o
o
o
o
o
o
o
o

Sole	proprietorship
Partnership
Family farm corporation
Authorized	farm	corporation
Limited	liability	agricultural	company
Family	farm	limited	liability	agricultural	company
Limited agricultural partnership
Family trust
Authorized	trust
Testamentary trust

PART B – COSTS OF REQUIRED IMPROVEMENTS (C Corporations only)
3. Total	costs	incurred	this	tax	year	for	capital	improvements	to	the	qualified	swine	facility.
Enter	this	amount	also	as	an	addition	modification	on	your	return.		See	instructions.

3.

________________

4. Credit	percentage	allowed.

4.

50%
________________

5. Maximum	amount	of	credit	allowed	this	tax	year	(multiply	line	3	by	line	4).

5.

________________

6. Carry	forward	from	prior	year	(enter	the	amount	from	the	prior	year’s	Schedule	K-38).

6.

________________

7. Total	swine	facility	improvement	credit	available	this	tax	year	(add	lines	5	and	6).

7.

________________

8. Amount	of	your	Kansas	tax	liability	for	this	tax	year	after	all	credits	other	than	this	credit.

8.

________________

9. Swine	facility	improvement	credit	this	tax	year	(enter	amount	from	line	7	or	line	8;	whichever	is	less).
Enter	this	amount	on	the	appropriate	line	of	Form	K-120.

9.

________________

10.	

________________

PART C – COMPUTATION OF THIS YEAR’S CREDIT

If line 9 is less than line 7, complete PART D.

PART D – COMPUTATION OF CREDIT CARRY FORWARD
10. Subtract	line	9	from	line	7.		This	is	the	amount	of	excess	credit	for	carry	forward.
Enter	this	amount	on	line	6	of	next	year’s	Schedule	K-38.	

(NOTE:		No	carry	forward	is	allowed	after	the	fourth	taxable	year	succeeding	the	year	in	which	the	costs	were	incurred.)

INSTRUCTIONS FOR SCHEDULE K-38
GENERAL INFORMATION
K.S.A.	79-32,204 created	the	swine	facility	improvement	credit.	
This	income	tax	credit	is	50%	of	the	costs	incurred	by	a	taxpayer	
for	required	improvements	to	a	qualified	swine	facility.	Any	unused	
credit	 may	 be	 carried	 forward	 until	 used.	 However,	 the	 credit	
cannot	be	carried	over	after	the	fourth	year.
This	credit	is	only	available	to	corporations	that	are	subject	to	
the	 Kansas	 corporate	 income	 tax	 (i.e.,	 C	 corporations)	 and	 not	
available	 to	 individuals,	 partnerships,	 S	 corporations,	 limited	
liability	companies,	and	other	pass-through	entities.
Carry	Forward	of	Unused	Credits:	For	tax	year	2017	and	all	years	
thereafter	no	new	credit	or	carryforward	is	available	to	individuals,	
partnerships,	S	corporations,	limited	liability	companies,	and	other	
pass-through	entities.
A	qualified swine facility is	one	that	has	been	using	its	swine	
waste	management	system	since	January	1,	1998	and	is	owned	
and	operated	by	a	sole	proprietorship	or	partnership,	or	by	a	family	
farm	 corporation,	 authorized	 farm	 corporation,	 limited	 liability	
agricultural	 company,	 family	 farm	 limited	 liability	 agricultural	
company,	limited	agricultural	partnership,	family	trust,	authorized	
trust	or	testamentary	trust	as	defined	in	K.S.A.	17-5903.
Required improvements to a qualified swine facility are
capital	improvements	that	the	Secretary	of	Health	and	Environment	
has	certified	to	the	director	of	taxation	as	required	for	the	facility	
to	comply	with	the	laws	regulating	the	management	and	disposal	
of	swine	waste,	and	are	not	necessary	merely	as	the	result	of	an	
expansion	for	which	a	permit	had	not	been	issued	or	applied	for	
prior	to	May	7,	1998.
Addition modification required. The costs claimed as the
basis	for	the	swine	facility	improvement	credit	that	are	claimed	for	
deduction	in	determining	federal	adjusted	gross	income	must	be	
added	back	to	federal	adjusted	gross	income.

SPECIFIC LINE INSTRUCTIONS
PART A – SWINE FACILITY INFORMATION
LINE 1a –	 Enter	 the	 name	 and	 address	 of	 the	 qualified	 swine	
facility	 to	 which	 improvements	 were	 made	 this	 tax	 year	
and	 certified	 as	 required	 by	 the	 Secretary	 of	 Health	 and	
Environment.
LINE 1b	–	Enter	the	Waste	Control	Permit	Number.
LINE 2 –	Check	the	box	for	the	type	of	ownership	of	this	qualified	
swine	facility.

PART B – COST OF REQUIRED IMPROVEMENTS
(C Corporations only)

LINE 3 – Enter the total costs incurred this tax year for the required
capital	improvements	listed	on	line	2	above.	Also	enter	this	
amount	on	the	applicable	line	on	your	income	tax	return	for	
addition	modifications.
LINE 4 –	 The	 maximum	 amount	 of	 credit	 allowed	 is	 50%	 of	 the	
total costs incurred this tax year.

LINE 5 – Multiply line	3	by	line	4.	This	is	the	maximum	amount	of	
swine	facility	improvement	costs	available	for	credit	this	tax	
year.

PART C – COMPUTATION OF THIS YEAR’S CREDIT
LINE 6 –	Enter	any	swine	facility	improvement	carry	forward	from	
line	11	of	your	prior	year’s	Schedule	K-38.
LINE 7 –	Add	lines	5	and	6	and	enter	the	result.	This	is	your	total	
swine	facility	improvement	credit	available	this	tax	year.
LINE 8 –	 Enter	 the	 amount	 of	 your	 Kansas	 tax	 liability	 after	 all	
credits	other	than	the	swine	facility	improvement	credit.
LINE 9 –	Enter	the	lesser	of	lines	7	or	8.	Enter	this	amount	on	the	
appropriate	line	of	Form	K-120.
If line 9 is less than line 7, complete PART D.

PART D – COMPUTATION OF CREDIT CARRY FORWARD
LINE 10 –	Subtract	line	9	from	line	7.	This	is	the	amount	of	credit	
you	will	have	available	to	enter	on	line	6	of	your	next	year’s	
Schedule	 K-38.	 Keep	 a	 copy	 of	 this	 schedule	 to	 file	 with	
your	next	year’s	tax	return	and	Schedule	K-38.
IMPORTANT:	 Do	 not	 send	 enclosures	 with	 this	 credit	
schedule.	Retain copies	of	the	following	documents	with	
your	tax	records	as	the	Kansas	Department	of	Revenue	
reserves the right to request them as necessary to verify your tax
credit.
• Certification	 of	 swine	 facility	 improvements	 issued	 by
the	Kansas	Department	of	Heath	and	Environment.
• An	itemized	list	of	Part	B	costs	with	copies	of	invoices.

TAXPAYER ASSISTANCE
For	 information	 about	 swine	 facility	 improvements	 or	 your	
certification,	contact:
Kansas	Department	of	Health	and	Environment
Bureau	of	Water
Livestock	Waste	Management	Section
1000	SW	Jackson,	Suite	420
Topeka,	KS	66612-1367
Phone:	785-296-0075
Website:	kdheks.gov/feedlots
For assistance	in	completing	this	schedule	contact	the	Kansas	
Department	of	Revenue:
Taxpayer	Assistance	Center
Scott	Office	Building
120	SE	10th	Ave
PO	Box	750260
Topeka	KS	66699-0260
Phone:	785-368-8222
Fax:	785-291-3614
Additional	copies of	this	credit	schedule	and	other	tax	forms	are	
available	from	our	website	at:	ksrevenue.gov