190718
                                                         KANSAS
K-(Rev. 8-19)38                       SWINE FACILITY IMPROVEMENT CREDIT

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

   ______________________________________________                    o         Sole proprietorship
    Name                                                             o
                                                                               Partnership
   ______________________________________________                    o         Family farm corporation
    Physical location                                                o         Authorized farm corporation
                                                                     o         Limited liability agricultural company
   ______________________________________________
    Mailing address                                                  o         Family farm limited liability agricultural company
                                                                     o         Limited agricultural partnership
   ______________________________________________City State Zip code o         Family trust
                                                                     o         Authorized trust
1b.  Waste Control Permit Number      _____________________          o         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.   ________________

PART C – COMPUTATION OF THIS YEAR’S CREDIT

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.   ________________
   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.                                               10.  ________________

   (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                                        LINE 5 – Multiply line 3 by line 4. This is the maximum amount of 
                                                                               swine facility improvement costs available for credit this tax 
K.S.A. 79-32,204 created the swine facility improvement credit.                year.
This income tax credit is 50% of the costs incurred by a taxpayer 
for required improvements to a qualified swine facility. Any unused            PART C – COMPUTATION OF THIS YEAR’S CREDIT
credit  may  be  carried  forward  until  used.  However,  the  credit  LINE 6 – Enter any swine facility improvement carry forward from 
cannot be carried over after the fourth year.                                  line 11 of your prior year’s Schedule K-38.
This credit is only available to corporations that are subject to       LINE 7 – Add lines 5 and 6 and enter the result. This is your total 
the  Kansas  corporate  income  tax  (i.e.,  C  corporations)  and  not        swine facility improvement credit available this tax year.
available  to  individuals,  partnerships,  S  corporations,  limited 
liability companies, and other pass-through entities.                   LINE 8 – Enter the amount of your Kansas tax liability after all 
                                                                               credits other than the swine facility improvement credit.
Carry Forward of Unused Credits: For tax year 2017 and all years 
thereafter no new credit or carryforward is available to individuals,   LINE 9 – Enter the lesser of lines 7 or 8. Enter this amount on the 
partnerships, S corporations, limited liability companies, and other           appropriate line of Form K-120.
pass-through entities.                                                         If line 9 is less than line 7, complete PART D.
A qualified swine facility is one that has been using its swine         PART D – COMPUTATION OF CREDIT CARRY FORWARD
waste management system since January 1, 1998 and is owned 
and operated by a sole proprietorship or partnership, or by a family    LINE 10 – Subtract line 9 from line 7. This is the amount of credit 
farm  corporation,  authorized  farm  corporation,  limited  liability         you will have available to enter on line 6 of your next year’s 
agricultural  company,  family  farm  limited  liability  agricultural         Schedule  K-38.  Keep  a  copy  of  this  schedule  to  file  with 
company, limited agricultural partnership, family trust, authorized            your next year’s tax return and Schedule K-38.
trust or testamentary trust as defined in K.S.A. 17-5903.
                                                                               IMPORTANT:  Do  not  send  enclosures  with  this  credit 
Required  improvements  to  a  qualified  swine  facility are                  schedule. Retain copies of the following documents with 
capital improvements that the Secretary of Health and Environment              your tax records as the Kansas Department of Revenue 
has certified to the director of taxation as required for the facility  reserves the right to request them as necessary to verify your tax 
to comply with the laws regulating the management and disposal          credit.
of swine waste, and are not necessary merely as the result of an 
                                                                        •      Certification  of  swine  facility  improvements  issued  by
expansion for which a permit had not been issued or applied for                the Kansas Department of Heath and Environment.
prior to May 7, 1998.                                                   •      An itemized list of Part B costs with copies of invoices.
Addition  modification  required. The costs claimed  as the 
basis for the swine facility improvement credit that are claimed for                TAXPAYER ASSISTANCE
deduction in determining federal adjusted gross income must be 
added back to federal adjusted gross income.                            For  information  about  swine  facility  improvements  or  your 
                                                                        certification, contact:
         SPECIFIC LINE INSTRUCTIONS                                            Kansas Department of Health and Environment
                                                                                               Bureau of Water
         PART A – SWINE FACILITY INFORMATION                                        Livestock Waste Management Section
LINE 1a –  Enter  the  name  and  address  of  the  qualified  swine                      1000 SW Jackson, Suite 420
     facility  to  which  improvements  were  made  this  tax  year                       Topeka, KS 66612-1367
     and  certified  as  required  by  the  Secretary  of  Health  and                         Phone: 785-296-0075
     Environment.                                                                   Website: kdheks.gov/feedlots
LINE 1b – Enter the Waste Control Permit Number.
                                                                        For assistance in completing this schedule contact the Kansas 
LINE 2 – Check the box for the type of ownership of this qualified      Department of Revenue:
     swine facility.
                                                                                          Taxpayer Assistance Center
       PART B – COST OF REQUIRED IMPROVEMENTS                                                  Scott Office Building
                       (C Corporations only)                                                   120 SE 10th Ave
LINE 3 – Enter the total costs incurred this tax year for the required                         PO Box 750260
     capital improvements listed on line 2 above. Also enter this                              Topeka KS 66699-0260
     amount on the applicable line on your income tax return for                               Phone: 785-368-8222
     addition modifications.                                                                   Fax: 785-291-3614
LINE 4 – The maximum amount of credit allowed is 50% of the             Additional copies of this credit schedule and other tax forms are 
     total costs incurred this tax year.                                available from our website at: ksrevenue.gov