PHOENIX (AP) - The Arizona Legislature is finishing its yearly work and just approved a plan that phases out 20 percent annual increases to a corporate tax credit that funds private school scholarships.
The House voted unanimously Friday to scale back the growth over four years and then increase it yearly by 2 percent or the inflation rate.
The tax credit funds so-called School Tuition Organizations that distribute the corporate cash they receive to private school students. The program started at $10 million in 2008 but now allows corporations to divert more than $100 million yearly to the school organizations and get credit toward their income taxes.
Under the bill now on its way to Gov. Doug Ducey's desk the maximum credit in 2024 would drop from about $220 million to $145 million.
