A New Hampshire Court ruling issued Monday struck down as unconstitutional the provisions of the state’s voucher tax credit law that fund religious schools. The decision by the Strafford County Superior Court declared that those portions of the program will have to be halted immediately. However, the tax credit/voucher program will still be able to provide funding to secular private schools, out-of-district public schools and home schools.

The court ruling, which can be found here, is based on Article 83 of the New Hampshire Constitution, which states that “no money raised by taxation shall ever be granted or applied for the use of the schools of institutions of any religious sect or denomination.” The law that it partially invalidates was passed in 2012 by a Republican-led Legislature over the veto of Democratic Gov. John Lynch.The budget bill now being considered by the Wisconsin legislature includes a tuition tax deduction for sending children to private schools, including religious schools. (Read more in this Budget Project Blog post.)  In contrast to the pending Wisconsin proposal, the N.H law provides a less direct form of tax incentive for private schools; it allows businesses to receive credits against corporate taxes owed equal to 85% of amounts they donate to state-designated “scholarship organizations.”

The ruling is likely to be appealed to the N.H. Supreme Court.  Read more about the lower court’s decision in the article posted in the Union Leader Monday evening.

Jon Peacock