Fillable Schedule K-38 - Kansas Swine Facility Improvement Credit (Page 2 of 2) in pdf

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

LINE 6—Enter any swine facility improvement carry forward from

shall be available to only corporations that are subject to the

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

Kansas corporate income tax (i.e., C corporations). New credits

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

are not available to individuals, partnerships, S corporations,

swine facility improvement credit available this tax year.

limited liability companies, and other pass-through entities.

Carry Forward of Unused Credits: If this credit was earned

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

prior to tax year 2013 and a carry forward credit remains available

credits other than the swine facility improvement credit.

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

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

However, that carry forward credit shall be subject to limitations

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

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

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

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

waste management system since January 1, 1998 and is owned

PART D — COMPUTATION OF CREDIT CARRY FORWARD

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

farm corporation, authorized farm corporation, limited liability

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

agricultural company, family farm limited liability agricultural

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

company, limited agricultural partnership, family trust, authorized

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

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

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

Required improvements to a qualified swine facility are

capital improvements that the Secretary of Health and

IMPORTANT: Do not send enclosures with this credit

schedule. Retain copies of the following documents with

Environment has certified to the director of taxation as required

your tax records as KDOR (Kansas Department of

for the facility to comply with the laws regulating the management

Revenue) reserves the right to request them as necessary to

and disposal of swine waste, and are not necessary merely as

verify your tax credit.

the result of an expansion for which a permit had not been issued

or applied for prior to May 7, 1998.

• Certification of swine facility improvements issued by the

Kansas Department of Heath and Environment.

Addition modification required. The costs claimed as the

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

basis for the swine facility improvement credit that are claimed

for deduction in determining federal adjusted gross income must

TAXPAYER ASSISTANCE

be added back to federal adjusted gross income.

For information about swine facility improvements or your

SPECIFIC LINE INSTRUCTIONS

certification, contact:

PART A — SWINE FACILITY INFORMATION

Kansas Department of Health and Environment

Bureau of Water

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

Livestock Waste Management Section

facility to which improvements were made this tax year and

1000 SW Jackson, Suite 420

certified as required by the Secretary of Health and

Topeka, KS 66612-1367

Environment.

Phone: (785) 296-0075

LINE 1b—Enter the Waste Control Permit Number.

Web site: kdheks.gov/feedlots/

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

For assistance in completing this schedule contact KDOR:

swine facility.

Tax Operations

PART B — COST OF REQUIRED IMPROVEMENTS

Docking State Office Building, 1st fl.

(C Corporations only)

915 SW Harrison St.

Topeka, KS 66612-1588

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

capital improvements listed on line 2 above. Also enter this

Phone: (785) 368-8222

amount on the applicable line on your income tax return for

Fax: (785) 291-3614

addition modifications.

Web site:

Schedule K-38 - Kansas Swine Facility Improvement Credit Page 2

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