HB 2155 Arizona House · 57th Legislature - First Regular Session

income tax; subtraction; adoption expenses

HB 2155 creates a tax deduction for Arizona taxpayers who adopt children. It allows filers to subtract qualified adoption costs - including medical, counseling, legal, and agency fees - from their Arizona gross income, with specific limits based on filing status. Before 2026, the maximum deduction is $3,000 for individuals or $3,000 total for married couples filing separately. Starting in 2026, the limit increases to $5,000 for single filers/head of household and $10,000 for married couples filing jointly, but the deduction must be claimed only in the year the final adoption order is granted.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

House Passage

Feb 2025

Senate Passage

Governor

Introduced Jan 16, 2025 Last action Mar 3, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version · 6 edits · Feb 12, 2025

MODERATE

This bill updates Arizona's individual income tax statute to modernize adoption expense deductions, add new tax breaks for virtual currency and digital assets, and clarify depreciation rules for business property. The changes expand tax benefits for adoptive families and introduce provisions for cryptocurrency transactions that were previously not addressed in state tax law.

Scope change

The bill expands the scope of Arizona's income tax code to include digital assets (virtual currency and non-fungible tokens) and updates adoption expense limits to reflect future inflation adjustments.

FISCAL

Adoption expense subtraction limits increased from $3,000 to $5,000 for single filers and from $3,000 to $10,000 for married couples filing jointly, effective for taxable years beginning on or after December 31, 2025.

ELIGIBILITY

New provision allows taxpayers to subtract the value of virtual currency and non-fungible tokens received through airdrops from their taxable income, but not any appreciation in value after receipt.

New subtraction for net capital gains derived from investments in qualified small businesses, effective for taxable years beginning on or after December 31, 2013.

New provision allows subtraction of net capital gains derived from exchanging one type of legal tender for another, effective for taxable years beginning on or after December 31, 2017.

REQUIREMENT

Added detailed depreciation calculation rules for business property placed in service between 2012 and 2016, with different percentages applied based on when the property was acquired.

DEFINITION

New definitions for 'airdrop', 'non-fungible token', and 'virtual currency' added to clarify tax treatment of digital assets.

Floor votes · House Feb 12, 2025

How they voted

40–19

Passed · 1 other

Total votes 60

Feb 12, 2025

D Democratic27

8 Yea 19 Nay

70% Nay

R Republican33

32 Yea 1

96% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 3, 2025

Upper · Passed

upper

Feb 12, 2025

Lower · Passed

PASSED

lower

Jan 29, 2025

Lower · Passed

lower

1 primary · 0 co-sponsors