income tax; subtraction; down payment

HB 2935 amends Arizona's tax code to increase the maximum deduction for adoption-related expenses. It raises the annual deduction limit from $3,000 (for single filers or separate married couples) to $5,000 for single individuals or heads of household, and to $10,000 for married couples filing jointly, effective for tax years beginning after December 31, 2025. This change directly affects Arizona taxpayers who claim adoption costs (including medical, legal, and agency fees) in the year their adoption is finalized. The bill modifies Section 43-1022 of Arizona Revised Statutes, specifically updating paragraph 12 of the tax subtractions list.