Fillable Form K-38 - Kansas Swine Facility Improvement Credit

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INSTRUCTIONS FOR SCHEDULE K-38

GENERAL INFORMATION

LINE 4 – The maximum amount of credit allowed is 50% of the

total costs incurred this tax year.

K.S.A. 79-32,204 created the swine facility improvement credit.

LINE 5 – Multiply line 3 by line 4. This is the maximum amount of

This income tax credit is 50% of the costs incurred by a taxpayer

swine facility improvement costs available for credit this tax

for required improvements to a qualified swine facility. Any unused

year.

credit may be carried forward until used. However, the credit

cannot be carried over after the fourth year.

PART C – COMPUTATION OF THIS YEAR’S CREDIT

For tax year 2013, and all tax years thereafter, new credits shall

LINE 6 – Enter any swine facility improvement carry forward from

be available to only corporations that are subject to the Kansas

line 11 of your prior year’s Schedule K-38.

corporate income tax (i.e., C corporations). New credits are not

LINE 7 – Add lines 5 and 6 and enter the result. This is your total

available to individuals, partnerships, S corporations, limited

swine facility improvement credit available this tax year.

liability companies, and other pass-through entities.

LINE 8 – Enter the amount of your Kansas tax liability after all

Carry Forward of Unused Credits: If this credit was earned prior

credits other than the swine facility improvement credit.

to tax year 2013 and a carry forward credit remains available

LINE 9 – Enter the lesser of lines 7 or 8. Enter this amount on the

to a taxpayer, that taxpayer may continue to claim that credit.

appropriate line of Form K-40, Form K-41, or Form K-120.

However, that carry forward credit shall be subject to limitations

and requirements in place at the time the credit was earned.

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

PART D – COMPUTATION OF CREDIT CARRY FORWARD

A qualified swine facility is one that has been using its swine

waste management system since January 1, 1998 and is owned

LINE 10 – Subtract line 9 from line 7. This is the amount of credit

and operated by a sole proprietorship or partnership, or by a family

you will have available to enter on line 6 of your next year’s

farm corporation, authorized farm corporation, limited liability

Schedule K-38. Keep a copy of this schedule to file with

agricultural company, family farm limited liability agricultural

your next year’s tax return and Schedule K-38.

company, limited agricultural partnership, family trust, authorized

trust or testamentary trust as defined in K.S.A. 17-5903.

IMPORTANT: Do not send enclosures with this credit

schedule. Retain copies of the following documents with your

Required improvements to a qualified swine facility are

tax records as the Kansas Department of Revenue reserves

capital improvements that the Secretary of Health and Environment

the right to request them as necessary to verify your tax credit.

has certified to the director of taxation as required for the facility

to comply with the laws regulating the management and disposal

• Certification of swine facility improvements issued by

of swine waste, and are not necessary merely as the result of an

the Kansas Department of Heath and Environment.

expansion for which a permit had not been issued or applied for

• An itemized list of Part B costs with copies of invoices.

prior to May 7, 1998.

TAXPAYER ASSISTANCE

Addition modification required. The costs claimed as the

basis for the swine facility improvement credit that are claimed for

For information about swine facility improvements or your

deduction in determining federal adjusted gross income must be

certification, contact:

added back to federal adjusted gross income.

Kansas Department of Health and Environment

Bureau of Water

SPECIFIC LINE INSTRUCTIONS

Livestock Waste Management Section

1000 SW Jackson, Suite 420

PART A – SWINE FACILITY INFORMATION

Topeka, KS 66612-1367

LINE 1a – Enter the name and address of the qualified swine

Phone: 785-296-0075

facility to which improvements were made this tax year

Website:

kdheks.gov/feedlots/

and certified as required by the Secretary of Health and

For assistance in completing this schedule contact the Kansas

Environment.

Department of Revenue:

LINE 1b – Enter the Waste Control Permit Number.

By mail

Walk-in

LINE 2 – Check the box for the type of ownership of this qualified

Tax Operations

Taxpayer Assistance Center

swine facility.

Docking State Office Building

Scott Office Building

PART B COST OF REQUIRED IMPROVEMENTS

915 SW Harrison St.

120 SE 10th Ave.

(C Corporations only)

Topeka, KS 66612-1588

Topeka, KS

LINE 3 – Enter the total costs incurred this tax year for the required

Phone: 785-368-8222

Fax: 785-291-3614

capital improvements listed on line 2 above. Also enter this

amount on the applicable line on your income tax return for

Additional copies of this credit schedule and other tax forms are

addition modifications.

available from our website at:

Form K-38 - Kansas Swine Facility Improvement Credit - 2016 Page 2

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