Ariz. Law Grants Tax Credit for Tuition-Aid Donations

A new Arizona law will grant taxpayers up to $500 in income-tax credits for donating money to nonprofit groups that, in turn, provide scholarships for students to attend private schools, including religious ones.

The law, which will take effect next year, also offers taxpayers up to a $200 credit for money given to public schools to support extracurricular activities that may require a fee, such as band or sports teams. Republican Gov. Fife Symington signed the measure into law last week.

Opponents of the law call it a back-door voucher scheme, but supporters say it's...