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Private Intrastate Adoption or Adoption of a Qualified Foster Child.

Ala. Code tit. 40, ch. 18, art. 15
in effect

Ala. Code § 40-18-360 Definitions.

40-18-360. Definitions. As used in this article, the following terms shall have the following meanings: (1) COMMISSIONER. The Commissioner of Revenue of the State of Alabama. (2) OUT-OF-STATE ADOPTION. An adoption through an out-of-state or foreign agency or government, through private individuals who are not residents of Alabama, or where the adoptee is otherwise not a resident of Alabama or citizen of the United States, in which the adoptive parent or parents reside in Alabama. (3) PRIVATE ADOPTION. An adoption through a private agency, or through private individuals without an agency, in which the adoptive parent or parents reside in Alabama. (4) QUALIFIED FOSTER CHILD. Any individual who either: a. Is in the permanent legal custody of the Alabama Department of Human Resources. b. Is placed in a licensed or approved foster home by the Alabama Department of Human Resources for the purpose of adoption pursuant to an approved case plan. (Act 2014-413, p. 1517, §1; Act 2018-549, §1; Act 2022-299, §1.)

Ala. Code § 40-18-361 Tax Credit for Certain Adoptions.

40-18-361. 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. (Act 2014-413, p. 1517, §2; Act 2018-549, §1; Act 2022-299, §1.)

Ala. Code § 40-18-363 Rulemaking Authority.

40-18-363. Rulemaking Authority. The commissioner shall be authorized to promulgate any rules necessary to implement and administer this article. (Act 2014-413, p. 1517, §4.)
Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026

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