Adoption Credit. Taxpayers that reside in Alabama can take a tax credit of $1,000 for a private intrastate adoption or the adoption of a qualified foster child. You must attach a completed Schedule AAC to claim the credit. To qualify for an adoption through a private agency the birth mother, the baby and the adoptive parent( s) must reside in Alabama. To qualify for an adoption of a foster child the foster child must be in the permanent legal custody of the Alabama Department of Human Resources.