WASHINGTON — The Supreme Court debated Tuesday whether lower court judges can block state tax breaks, like one that helps fund private religious schools in Arizona, The Associated Press reported.

Arizona residents get income tax credits for donating money for private school education. Those contributions help fund scholarships and grants and are part of a state effort to give parents more choices in educating their children.

A group of Arizona taxpayers sued the state in federal court, arguing the tax credits promoted religion. Arizona wants the high court to decide whether federal courts can intervene when state judges and policy makers find no problem with tax schemes.

The Bush administration, which supports government funding for private parochial education, backs Arizona, as do 40 other states, which want their taxing decisions protected from federal lawsuits, the news service reported.

The Supreme Court argument focused on taxes, not religion.

Arizona Attorney General Terry Goddard argued the state's tax credits cannot be challenged in federal courts because a 1937 law says federal courts may not interfere with the "assessment, levy or collection" of state taxes.

Chief Justice William H. Rehnquist told Goddard the statute appeared better suited to property tax, not income tax.

The case stems from a 9th U.S. Circuit Court of Appeals ruling that federal courts can hear constitutional challenges of state income tax credits. Arizona argues those lawsuits belong in state court.

The state's tax break allows a dollar-for-dollar credit of up to $500 for an individual and $625 for a married couple.

Justices are expected to rule in the case before July. They also will rule on a separate case that asks if states can refuse to give college scholarships to students studying religion, when grants are available for non-religion majors.