Carl Davis, the research director for the Institute on Taxation and Economic Policy in Washington, said that Alabama provides a 100 percent state tax credit for taxpayers who donate money to organizations that give children vouchers to attend private school. Under its new law, New York gives an 85 percent state tax credit to residents who donate to a state fund that supports education.
Treating Alabama taxpayers as compliant with I.R.S. law but New Yorkers as not would be largely indefensible, he said. Read more