Tax Credit for Certain Adoptions

# (a)

A taxpayer shall be allowed a one time, refundable credit against the tax imposed by Section 40-18-2, for a private adoption or the adoption of a qualified foster child until December 31, 2022. The amount of such credit shall be one thousand dollars ($1,000) per child adopted through a private adoption or qualified foster child to be claimed in the year in which the adoption becomes final.

# (b)

# (1)

For tax years beginning on and after January 1, 2023, and ending December 31, 2027, a taxpayer shall be allowed a one time, refundable credit against the tax imposed by Section 40-18-2, for a private adoption, an out-of-state adoption, or the adoption of a qualified foster child. The credit may be claimed in the year in which the adoption becomes final.

# (2)

The amount of the credit shall be two thousand dollars ($2,000) per child adopted through a private adoption or per the adoption of a qualified foster child, provided that the adopted child is a resident of Alabama.

# (3)

If the child is adopted through an out-of-state adoption or is not otherwise a resident of Alabama, the amount of the credit shall be one thousand dollars ($1,000) per child.

# (c)

A taxpayer who adopts a child of his or her spouse is not eligible for a tax credit under this section.

# (d)

For tax years beginning on and after January 1, 2028, a taxpayer shall be allowed a one time, refundable credit against the tax imposed by Section 40-18-2, for a private adoption or the adoption of a qualified foster child. The amount of such credit shall be one thousand dollars ($1,000) per child adopted through a private adoption or qualified foster child to be claimed in the year in which the adoption becomes final.