MONTGOMERY, Ala. (AP) – The Alabama Legislature has approved a bill to encourage adoptions by providing a one-time state tax credit of $1,000.
The bill by Republican Rep. Paul Lee of Dothan cleared the Senate 29-0 Tuesday. It passed earlier in the House 72-23 and now goes to the governor for signing into law.
Proponents say the one-time income-tax credit would apply to a private intrastate adoption and the adoption of an Alabama foster child where both the birth mother and the adoptive parents are from Alabama.
Legislative fiscal experts estimate the tax credits will apply to about 2,500 adoptions annually and cost the state $2.5 million in tax revenue.
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