Committee: Finance and Taxation EducationSponsor: Shaver
Analyst: Tiffany WeaverDate: 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