Bill > HB2155

This bill modifies the Arizona income tax law by updating the subtraction allowed for adoption expenses. Specifically, the bill changes the maximum amount taxpayers can subtract from their Arizona gross income for unreimbursed adoption-related costs. For taxable years before December 31, 2025, the existing $3,000 limit remains in place. Starting from taxable years after December 31, 2025, the subtraction limits will increase to $5,000 for single individuals and heads of household, and $10,000 for married couples filing joint returns. The bill also clarifies that these adoption expense subtractions can be taken for costs incurred in prior years, but can only be claimed in the tax year when the final adoption order is granted. Additionally, for couples filing separate returns, they can divide the subtraction between them, but cannot exceed the maximum limit for their filing status. This change aims to provide more financial support for individuals and families pursuing adoption by increasing the tax benefit available for adoption-related expenses.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/81853