Ariz. court upholds private school tax credit

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PHOENIX -- The Arizona Court of Appeals on Thursday upheld the constitutionality of a state tax break for businesses' donations to help pay for tuition grants for students attending private schools.

A split three-judge panel's majority opinion said the state corporate income tax credit doesn't violate state or federal constitutional provisions dealing with religion and private education. The panel said it serves a valid nonreligious educational purpose without excessive government entanglement in religion.

The Court of Appeals' ruling cites a 1999 Arizona Supreme Court decision that upheld a similar dollar-for-dollar individual income tax credit for donations for private school tuition grants.

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