A federal district court in California on Friday denied the Government's motion to dismiss a First Amendment establishment clause challenge to the § 107 parsonage allowance, but granted the Government's motion to dismiss a challenge to the § 265(a)(6) deduction of interest and property taxes paid with § 107 funds. Freedom from Religion Foundation, Inc. v. Geithner, No. 09-2894 (E.D. CA May 21, 2010). (Hat Tip: Steven Sholk, Religion Clause.)
