Arizona Tax Credits

Kotterman v. Killian
Arizona Tax Credits (State Court Case)

In 1999, the Arizona Supreme Court struck a major blow for educational freedom when it upheld the state’s Education Tax Credit program as constitutional.  Arizona became the third state (after Wisconsin and Ohio) to declare a K-12 school choice program constitutional under both the First Amendment’s Establishment Clause and its state constitution’s religion clauses. 

The strongly worded opinion in Kotterman v. Killian provided a preview of the current legal battle over state constitutions’ religious provisions when it declared Arizona’s Blaine Amendment “a clear manifestation of religious bigotry” and refused to strike down the program under the provision.  The discriminatory Blaine Amendments, found in 36 other state constitutions, are one of the favorite legal tools of school choice opponents.

The Arizona legislature passed the Education Tax Credit Program in 1997 to provide tax credits of up to $500 for taxpayers who contribute to programs that provide scholarships to students to attend private schools at the K-12 level.  It also provides $200 credits for contributions to public schools for extracurricular activities.  The program helps disadvantaged children trapped in poor public schools attend the private schools of their choice.