The Supreme Court signaled Monday it is poised to side with Catholic Charities in a dispute over whether religiously affiliated groups are entitled to an exemption from certain state taxes, a decision that could expand the types of groups that would receive a break under the First Amendment.

Justices suggested the Catholic Charities Bureau shouldn't have to pay unemployment taxes because the agency's work is motivated by religious beliefs.

The Wisconsin Catholic Charities case has implications for other religiously connected nonprofits, including hospitals, and for state unemployment systems.