May 27, 2002

Bush signs clergy tax break into law
___WASHINGTON (RNS)--An 81-year-old tax break for clergy housing expenses is now enshrined in law after President Bush signed a bill that protects it from possible court action.
___Bush signed the Clergy Housing Allowance Clarification Act May 20. The bill drew the support of a wide array of religious groups, including Southern Baptists, Orthodox Jews, mainline Protestants and Catholics, who said without the tax break, small and rural churches would be especially hard-hit.
___While the longstanding practice now has beeen written into law, that does not settle questions about the credit's constitutionality.
___The tax break allows clergy to deduct from their taxable income the portion of their salary devoted to housing expenses.

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