Green v. Garriott

Litigation: Litigation Challenging Arizona’s “Low-Income Corporate Income Tax Credit Scholarships,” a tax credit scholarship program enacted in 2006. Opposed to educational choice program : Arizona Center for Law in the Public Interest, Arizona School Boards Association. In support: Alliance Defense Fund, Attorney General Goddard, School Choice Arizona.

Outcomes: On March 12, 2009, the Arizona Court of Appeals upheld Arizona’s corporate tax-credit scholarships and the Arizona Supreme Court refused to hear an appeal.

Why it Matters: This court relied on earlier decisions in Kotterman v. Killian (AZ), Mueller v. Allen (MN), and Zelman v. Simmons-Harris (OH). The Court found that tax credits are not appropriations, schools are not beneficiaries, a private scholarship program has a secular purpose, and that tax credit scholarship programs are privately funded.

Effects: Arizona’s “Low Corporate Income Tax Credit Scholarships” serves close to 30,000 students today and well over 1000 corporate entities annually contribute to scholarship granting organizations.