Tax credit programs are Alaska’s best option for a school choice program. Because Alaska does not have an individual state income tax, a tax credit program would have to apply to corporate or other taxes. A voucher program, however, would be problematic. Alaska courts have interpreted the state’s Blaine Amendment restrictively. Although its actual terms ban only “direct” aid, Alaska courts have rejected the distinction between aiding students and aiding the institutions those students choose to attend, thereby limiting the use of public funds to public educational institutions.

Model Legislation: Education Savings Account, Great Schools Tax Credit Program, Family Education Tax Credit Program