Wed August 12, 2009
Tuition Tax Credit Investigated
Flagstaff, AZ – Democratic lawmakers are calling for a federal investigation into Arizona's private school tuition tax credit program. They allege the program violates federal tax laws. Arizona allows taxpayers to donate money to non-profits known as "school tuition organizations". The groups then give scholarships to children for private school tuition. In exchange for the contribution, donors get a dollar-for-dollar tax credit. The state's democratic lawmakers based their request on an investigation by the East Valley Tribune, which concluded the program has failed to draw more minority students into private schools. House Minority Leader David Lujan says school tuition organizations are violating federal tax laws by earmarking donations for specific children.