ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: FIN DP 5-2-0-0 | APPROP DP 7-3-0-0 | 3^rd Read 17-12-1-0 House: WM DP 6-4-0-0 | APPROP DP 8-6-0-1

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SB 1156: income tax; subtraction; adoption fees

Sponsor: Senator Kern, LD 27

Caucus & COW

Overview

Establishes the adoptive parent grant fund and increases individual income tax subtractions for adoption related expenses in TY 2024.

History

Under current statute the amount of unreimbursed medical and hospital costs, adoption counseling, legal and agency fees and other nonrecurring costs of adoption not to exceed $3,000.  In the case of a husband and wife who file separate returns, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife may not exceed $3,000.  The subtraction under this paragraph may be taken for the costs that are described in this paragraph and that are incurred in prior years, but the subtraction may be taken only in the year during which the final adoption order is granted. (A.R.S. § 43-1022)

Provisions

1. Establishes the adoptive parent grant fund to provide grants for the unreimbursed costs of an adoption. (Sec. 1)

2. Allows the director to accept and spend federal monies, as well as private grants, gifts, contributions and devises. (Sec. 1)

3. Specifies that grants awarded will be $1,000 per adoption and are on a first come, first served basis. (Sec. 1)

4. Allows parents to apply for the grant starting January 1, 2025. (Sec. 1)

5. Exempts monies in the fund from lapsing. (Sec. 1)

6. Increases individual income tax subtractions from the Arizona gross income to $40,000 in TY 2024 for unreimbursed medical and hospital costs, adoption counseling, legal and agency fees and other nonrecurring costs of adoption. (Sec. 2)

7. Appropriates $4 million from the state GF to the adoptive parent grand fund in FY 2024. (Sec. 4)

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11.                   SB 1156

12. Initials VP/AA        Page 0 CaucusCOW

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