Form K-38 - Kansas Swine Facility Improvement Credit

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.

K-38 Kansas Swine Facility Improvement Credit Rev. 8-19 (ksrevenue.gov)