HB774 Summary

• Establishes an Individual Development Account Program within the Alabama Department of Human Resources Office of the Commissioner to help low-income individuals (those with household income at or below 80% of state median or 200% of federal poverty guidelines) build assets.

• Eligible participants may enter agreements with fiduciary organizations to open accounts requiring completion of financial literacy education, savings deposits (capped at $2,000), and achievement of approved asset goals before receiving matching funds.

• Matching funds may be used for qualified purposes including postsecondary education, occupational training, first-time home purchase, home repairs, business capitalization, automobile purchase, and assistive technology.

• Account deposits and matching funds are excluded from gross income for tax purposes and do not affect eligibility for means-tested public benefits including Medicaid, TANF, and supplemental nutrition assistance.

• The Commissioner shall select qualified fiduciary organizations through competitive processes; fiduciary organizations may use no more than 15% of allocated funds for administrative and operational purposes and must file annual reports on account activity.