FISCAL NOTE

House Bill 487 (Act 2022-299) as enacted could decrease income tax receipts to the Education Trust Fund by an estimated maximum of $3.8 million annually, beginning in Fiscal Year 2024 through Fiscal Year 2028 by expanding the current income tax credit for certain adoptions to: 1) allow adoptions by private individuals without an agency to qualify for the credit; and 2) increase the amount of the credit from $1,000 to $2,000 per adoption, where the adoptee is a resident of Alabama.

This act could also decrease foster care board payment expenses by the Department of Human Resources (DHR), funded from the Alabama Public Welfare Trust Fund, by $6,600 annually for each child in DHR adopted pursuant to this act.

Pursuant to the provisions of the ETF Rolling Reserve Act contained in Section 29-9-3(b)(3), Code of Alabama 1975, the provisions of this act will reduce the ETF fiscal year appropriation cap for fiscal year 2024 by $3.8 million.