|Committee: Finance and Taxation Education||Sponsor: Shaver|
|Analyst: Tiffany Weaver||Date: 04/06/2022|
House Bill 487 as passed the House of Representatives could decrease income tax receipts to the Education Trust Fund by an estimated maximum of $3.8 million annually, beginning in Fiscal Year 2024 by expanding the current income tax credit for certain adoptions to: 1) allow adoptions by private individuals without an agency to qualify for the credit; and 2) increase the amount of the credit from $1,000 to $2,000 per adoption, where the adoptee is a resident of Alabama.
This bill could also decrease foster care board payment expenses by the Department of Human Resources (DHR), funded from the Alabama Public Welfare Trust Fund, by $6,600 annually for each child in DHR adopted pursuant to this bill.
Pursuant to the provisions of the ETF Rolling Reserve Act contained in Section 29-9-3(b)(3), Code of Alabama 1975, the provisions of this bill will reduce the ETF fiscal year appropriation cap for fiscal year 2024 by $3.8 million.
As amended and reported by the Committee on Finance and Taxation Education, provides that the exemption provided by this bill shall be available through the 2027 tax year.
|Arthur Orr, Chairperson|
Finance and Taxation Education