AZ HB2155

Increases the Arizona income tax subtraction for adoption expenses from $3,000 to $5,000 for single individuals or heads of household, effective for taxable years beginning December 31, 2025.

Allows married couples filing jointly to subtract up to $10,000 in adoption expenses (versus the current $3,000 limit) for taxable years beginning December 31, 2025 and after.

Permits married couples filing separately to divide the $10,000 subtraction between them, with a combined maximum of $10,000.

Applies the increased subtraction limits to adoption-related costs including medical and hospital expenses, counseling, legal fees, and agency fees incurred in prior years, but only in the year the final adoption order is granted.