Parents of children in government schools also can deduct supplemental, education-related expenses. The credit does not apply to private school tuition. The new law allows the credit regardless of net income. Arizona passed an education tax credit law to take effect in 1998, but it takes a completely different approach. Tax credits could deliver many of the benefits offered by other kinds of school choice, enabling parents to choose schools with the quality and values they prefer and saving taxpayers money.
Tax credits have additional political, legal and administrative advantages.
A related criticism is that it is unconstitutional. Although opponents of educational freedom are sure to take any reform to court, tax credits have overcome First Amendment church-state objections. The original Minnesota law withstood a court challenge in 1983. 12 Finally, private education institutions, and parents paying for their children to attend these schools, make special contributions to the areas in which they operate. More fundamentally, whatever unequal effect may be attributed to the statutory classification can fairly be regarded as a rough return for the benefits, discussed above, provided to the State and all taxpayers by parents sending their children to parochial schools.