Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Adoption Tax Subtraction topic
No spam. Unsubscribe anytime.
Committee advances larger adoption subtraction; proponents cite rising costs
Summary
The Ways and Means Committee voted to send House Bill 2155 forward with a due‑pass recommendation. The bill raises the state income tax subtraction for adoption expenses from $3,000 to $5,000 for single filers and to $10,000 for married couples filing jointly, aiming to reflect higher adoption costs and eliminate a marriage penalty.
The Arizona House Committee on Ways and Means advanced House Bill 2155 on Jan. 27, 2025, which would increase the state income tax subtraction for adoption expenses. The committee returned the bill with a due‑pass recommendation by a recorded vote of 5 ayes, 3 nays and 1 present.
House Bill 2155 would raise the subtraction available to single individuals and heads of household from $3,000 to $5,000 and increase the combined subtraction cap for married couples filing joint or separate returns to $10,000. The measure would leave the subtraction as a nonrefundable reduction to Arizona gross income rather than creating a refundable credit.
Douglas Dexter, a research intern, summarized the change for the committee: “House Bill 2155 increases the subtraction to Arizona gross income regarding the costs of adoption from $3,000 to $5,000 for single individuals and heads of household and to $10,000 for married couples filing either joint or separate returns,” Dexter said.
Supporters said the measure updates a deduction that has not kept pace with inflation and the rising costs of adoption. Representative Nelson, who described himself as an adoptive father, said the financial burden of adoption can be substantial and that the state should ease the cost for families. “When I adopted my daughter, it cost us $35,000 for that adoption. And so I can tell you that tax credit was extremely helpful overall,” Representative Nelson said, referencing the federal adoption credit that he and the sponsor noted is separate from the proposed state subtraction.
Opponents and some committee members asked for a fiscal note and additional details on budgetary impact before final floor consideration. Committee staff said a fiscal note was not yet available and that staff would produce one if requested. The committee recorded a motion returning the bill with a due‑pass recommendation; members who explained their votes said they support adoption policy but wanted additional fiscal details before final votes on the floor.
Votes at a glance: House Bill 2155 — returned with a due‑pass recommendation (5 ayes, 3 nays, 1 present).
