Senate Bill 2647 Summary

• Creates the Family Savings Initiative Act to establish Individual Development Accounts (IDAs) for low-income individuals earning no more than 200% of federal poverty level with net worth not exceeding $10,000.

• Authorizes Department of Human Services to contract with nonprofit fiduciary organizations to serve as intermediaries managing IDAs held at financial institutions and providing matching funds of $3 for every $1 contributed (capped at $2,000 per individual or $4,000 per household).

• Permits IDA funds to be used for home purchase, microenterprise development, postsecondary education, retirement accounts, automobile purchase, and qualified emergency withdrawals; imposes penalties for unauthorized withdrawals.

• Grants Mississippi taxpayers a state income tax credit equal to 50% of matching funds contributed to fiduciary organizations, limited to $25,000 per year with a $100,000 annual statewide cap.

• Excludes IDA deposits and interest/dividend earnings from being counted as income or assets when determining eligibility for means-tested assistance programs.