1. (1) As used in this section:

   1. (a) "Adoption expense" means the same as that term is defined in Section 59-10-1046.
   2. (b) "Domestic adoption" means the same as that term is defined in Section 59-10-1046.
   3. (c) "Qualifying child" means the same as that term is defined in Section 59-10-1046.

   4. (d) "Qualifying claimant" means a claimant:

      1. (i) whose adjusted gross income is:

         1. (A) for a claimant who files a federal income tax return jointly with the claimant's spouse, less than $55,000; and
         2. (B) for a claimant who files a federal income tax return other than jointly, less than $27,500;
      2. (ii) who did not, and if the claimant is married, whose spouse did not, receive state or federal assistance during the taxable year in which the adoption is finalized; and
      3. (iii) who applies for and receives a certification described in Section 35A-1-111 from the Department of Workforce Services.
   5. (e) "State or federal assistance" means the same as that term is defined in Section 59-10-1046.

2. (2)

   1. (a) Subject to Section 59-10-1102.1 and other provisions of this Subsection (2), a qualifying claimant is eligible to claim a refundable tax credit equal to the lesser of:

      1. (i) $3,500; or
      2. (ii) the amount of the qualifying claimant's adoption expenses.
   2. (b) A qualifying claimant who claims the tax credit described in Subsection (2)(a) shall claim the tax credit for the taxable year in which the adoption is finalized.
3. (3) A qualifying claimant may not claim a credit under this section to the extent that the qualifying claimant claims a federal tax credit under 26 U.S.C. Sec. 23 for the same adoption expense.
4. (4) A qualifying claimant who is married may claim a tax credit under this section only if the qualifying claimant and the qualifying claimant's spouse file a joint federal income tax return.

Enacted by Chapter 460, 2023 General Session