AL
Alabama House Bill HB487

Alabama 2022 Regular Session

Alabama House Bill HB487 Compare Versions

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11 1 HB487
2-2 215952-4
2+2 215952-3
33 3 By Representatives Shaver, Wood (D), Pettus, Rich, Oliver,
44 4 Lipscomb, Hurst, Bedsole, Sorrell, Ball, Kitchens, Treadaway,
55 5 Farley, Standridge, Ledbetter, Clouse, Blackshear, Allen,
66 6 Carns, Drake, Isbell, Simpson and Lovvorn
77 7 RFD: Ways and Means Education
88 8 First Read: 10-MAR-22
99
10-Page 0 HB487
11-1
12-2 ENROLLED, An Act,
13-3 Relating to taxation; to amend Sections 40-18-360
14-4 and 40-18-361, Code of Alabama 1975, to expand the income tax
15-5 credit available to individuals who adopt a child.
16-6 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
17-7 Section 1. Sections 40-18-360 and 40-18-361 of the
18-8 Code of Alabama 1975, are amended to read as follows:
19-9 "§40-18-360.
20-10 "As used in this article, the following terms shall
21-11 have the following meanings:
22-12 "(1) COMMISSIONER. The Commissioner of Revenue of
23-13 the State of Alabama.
24-14 "(2) OUT-OF-STATE ADOPTION. An adoption through an
25-15 out-of-state or foreign agency or government, through private
26-16 individuals who are not residents of Alabama, or where the
27-17 adoptee is otherwise not a resident of Alabama or citizen of
28-18 the United States, in which the adoptive parent or parents
29-19 reside in Alabama.
30-20 "(2) (3) PRIVATE ADOPTION. An adoption through a
31-21 private agency, or through private individuals without an
32-22 agency, in which the adoptive parent(s) parent or parents
33-23 reside in Alabama.
34-24 "(3) (4) QUALIFIED FOSTER CHILD. Any individual who
35-25 either:
36-Page 1 HB487
37-1 "a. is Is in the permanent legal custody of the
38-2 Alabama Department of Human Resources; and/or.
39-3 "b. is Is placed in a licensed or approved foster
40-4 home by the Alabama Department of Human Resources for the
41-5 purpose of adoption pursuant to an approved case plan.
42-6 "§40-18-361.
43-7 (a) A taxpayer shall be allowed a one time,
44-8 refundable credit against the tax imposed by Section 40-18-2,
45-9 for a private adoption or the adoption of a qualified foster
46-10 child until December 31, 2022. The amount of such credit shall
47-11 be one thousand dollars ($1,000) per child adopted through a
48-12 private adoption or qualified foster child to be claimed in
49-13 the year in which the adoption becomes final.
50-14 "(b)Beginning with tax year 2023, a taxpayer shall
51-15 (b) For tax years beginning on and after January 1, 2023, and
52-16 ending December 31, 2027, a taxpayer shall be allowed a
53-17 onetime, refundable credit against the tax imposed by Section
54-18 40-18-2, for a private adoption, an out-of-state adoption, or
55-19 the adoption of a qualified foster child. The credit may be
56-20 claimed in the year in which the adoption becomes final.
57-21 (1) The amount of the credit shall be two thousand
58-22 dollars ($2,000) per child adopted through a private adoption
59-23 or per the adoption of a qualified foster child, provided that
60-24 the adopted child is a resident of Alabama.
61-Page 2 HB487
62-1 (2) If the child is adopted through an out-of-state
63-2 adoption or is not otherwise a resident of Alabama, the amount
64-3 of the credit shall be one thousand dollars ($1,000) per
65-4 child.
66-5 "(c) A taxpayer who adopts the child of his or her
67-6 spouse is not eligible for a tax credit under this section."
68-7 (d) For tax years beginning on and after January 1,
69-8 2028, a taxpayer shall be allowed a one time, refundable
70-9 credit against the tax imposed by Section 40-18-2, for a
71-10 private adoption or the adoption of a qualified foster child.
72-11 The amount of such credit shall be one thousand dollars
73-12 ($1,000) per child adopted through a private adoption or
74-13 qualified foster child to be claimed in the year in which the
75-14 adoption becomes final.
76-15 Section 2. This act shall become effective on the
77-16 first day of the third month following its passage and
78-17 approval by the Governor, or its otherwise becoming law.
79-Page 3 HB487
80-1
10+Page 0 1 215952-3:n:01/18/2022:LSA-DJ/ccd
8111 2
8212 3
8313 4
84-Speaker of the House of Representatives
85-
8614 5
87-6 President and Presiding Officer of the Senate
88-House of Representatives7
89-I hereby certify that the within Act originated in8
90-9 and was passed by the House 31-MAR-22.
91-10
92-11 Jeff Woodard
93-12 Clerk
94-13
15+6
16+7
17+8 SYNOPSIS: Existing law allows taxpayers to claim a
18+9 onetime income tax credit of $1,000 for certain
19+10 adoptions.
20+11 This bill would increase this tax credit to
21+12 $2,000, if the adopted child is a resident of
22+13 Alabama.
9523 14
96-Senate15 07-APR-22 Amended and Passed
97-House16 07-APR-22
98-Concurred in Sen-
99-ate Amendment
100- 17
101-Page 4
24+15 A BILL
25+16 TO BE ENTITLED
26+17 AN ACT
27+18
28+19 Relating to taxation; to amend Sections 40-18-360
29+20 and 40-18-361, Code of Alabama 1975, to expand the income tax
30+21 credit available to individuals who adopt a child.
31+22 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
32+23 Section 1. Sections 40-18-360 and 40-18-361 of the
33+24 Code of Alabama 1975, are amended to read as follows:
34+25 "§40-18-360.
35+26 "As used in this article, the following terms shall
36+27 have the following meanings:
37+Page 1 1 "(1) COMMISSIONER. The Commissioner of Revenue of
38+2 the State of Alabama.
39+3 "(2) OUT-OF-STATE ADOPTION. An adoption through an
40+4 out-of-state or foreign agency or government, through private
41+5 individuals who are not residents of Alabama, or where the
42+6 adoptee is otherwise not a resident of Alabama or citizen of
43+7 the United States, in which the adoptive parent or parents
44+8 reside in Alabama.
45+9 "(2) (3) PRIVATE ADOPTION. An adoption through a
46+10 private agency, or through private individuals without an
47+11 agency, in which the adoptive parent(s) parent or parents
48+12 reside in Alabama.
49+13 "(3) (4) QUALIFIED FOSTER CHILD. Any individual who
50+14 either:
51+15 "a. is Is in the permanent legal custody of the
52+16 Alabama Department of Human Resources; and/or.
53+17 "b. is Is placed in a licensed or approved foster
54+18 home by the Alabama Department of Human Resources for the
55+19 purpose of adoption pursuant to an approved case plan.
56+20 "§40-18-361.
57+21 (a) A taxpayer shall be allowed a one time,
58+22 refundable credit against the tax imposed by Section 40-18-2,
59+23 for a private adoption or the adoption of a qualified foster
60+24 child. The amount of such credit shall be one thousand dollars
61+25 ($1,000) per child adopted through a private adoption or
62+26 qualified foster child to be claimed in the year in which the
63+27 adoption becomes final.
64+Page 2 1 "(b) Beginning with tax year 2023, a taxpayer shall
65+2 be allowed a onetime, refundable credit against the tax
66+3 imposed by Section 40-18-2, for a private adoption, an
67+4 out-of-state adoption, or the adoption of a qualified foster
68+5 child. The credit may be claimed in the year in which the
69+6 adoption becomes final.
70+7 (1) The amount of the credit shall be two thousand
71+8 dollars ($2,000) per child adopted through a private adoption
72+9 or per the adoption of a qualified foster child, provided that
73+10 the adopted child is a resident of Alabama.
74+11 (2) If the child is adopted through an out-of-state
75+12 adoption or is not otherwise a resident of Alabama, the amount
76+13 of the credit shall be one thousand dollars ($1,000) per
77+14 child.
78+15 "(c) A taxpayer who adopts the child of his or her
79+16 spouse is not eligible for a tax credit under this section."
80+17 Section 2. This act shall become effective on the
81+18 first day of the third month following its passage and
82+19 approval by the Governor, or its otherwise becoming law.
83+Page 3