DE SB243

Establishes the Baby Bond Account Fund to deposit $2,000 into individual accounts for infants born on or after January 1, 2022, whose parents are domiciled in Delaware or establish residence within 6 months of birth and whose household income does not exceed 200% of the federal poverty level.

Places administration of the Fund under the Plans Management Board, which invests and manages the money in individual accounts with earnings and interest deposited back into the Fund.

Prohibits distributions from individual accounts before the account holder turns 18 years old, except for qualified tuition and related educational expenses if the account holder is an eligible student.

Permits distributions after age 18 only for qualified expenses including post-secondary education, primary residence acquisition, qualified business capitalization, and approved investments in financial assets that provide long-term wealth gains; requires account holders to remain domiciled in Delaware to request distributions.

Excludes contributions to and distributions from Baby Bond Account Fund accounts from federal adjusted gross income for Delaware state tax purposes.