PHOENIX – A ruling by a federal appeals court revives a constitutional challenge to Arizona’s income tax credit for donations for private school scholarships.
The San Francisco-based 9th U.S. Circuit Court of Appeals ruled Tuesday that plaintiffs challenging the 1997 state tax credit law have enough of a case to proceed with their challenge. The decision overturns a ruling by a trial judge who had dismissed the case.
The challenge contends the tax credit violates the U.S. Constitution’s prohibition against government support or preference for religion.
The credit has been upheld by the Arizona Supreme Court.