individual income tax; subtraction; adoption

HB 2011 adds a tax subtraction for qualified adoption expenses in Arizona's individual income tax code. It allows taxpayers to reduce their taxable income by up to $3,000 (before 2026) or $5,000/$10,000 (after 2025, depending on filing status) for costs like legal fees, agency fees, counseling, and embryo adoption. The subtraction applies only in the year the adoption is finalized (or the legal transfer occurs for embryo adoption) and cannot exceed the specified annual limits. This directly affects Arizona residents who pay adoption costs and file state taxes. The bill amends Arizona Revised Statutes § 43-1022, specifically adding Section 12 for adoption-related expenses.