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HB 2155

income tax; subtraction; adoption expenses

57th Legislature - First Regular Session Introduced by Rachel Keshel

Arizona bill allows taxpayers to subtract adoption expenses from state taxable income, reducing tax burden for families pursuing adoption.

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WeVote Research Nonpartisan
Bill Summary · HB 2155

Legislative bill overview

HB 2155 creates an income tax subtraction (deduction) for adoption expenses in Arizona. The bill allows taxpayers to subtract qualifying adoption costs from their state taxable income, reducing their overall tax liability. This applies to expenses incurred during the adoption process.

Why is this important

Adoption expenses can be substantial, often ranging from $5,000 to $40,000+ depending on the type of adoption. By reducing taxable income, this provision lowers the tax burden on families pursuing adoption, potentially making family formation through adoption more financially accessible. This aligns Arizona's tax code with federal law, which has offered similar deductions.

Potential points of contention

  • Cost to state revenue: The fiscal impact depends on adoption rates and claim frequency; Arizona must balance supporting families against reduced tax revenue
  • Income inequality: High-income earners receive larger tax benefits from deductions compared to lower-income families, who may benefit less or claim the standard deduction anyway
  • Definition and limits: The bill's specifics on which expenses qualify (agency fees, legal costs, home studies, etc.) and any income caps or expense limits will determine accessibility and fairness
  • Complexity: Taxpayers must document and track qualifying expenses, potentially requiring professional tax assistance

Compiled from official sources — confirm details with the bill’s official record.

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