Senate Bill 2587 - Family Empowerment Act Summary

• Creates Individual Development Accounts (IDAs) for low-income Mississippi residents with gross household income not exceeding 200% of federal poverty level and net worth not exceeding $10,000.

• Establishes fiduciary organizations (nonprofits) to manage IDAs and provide matching funds at a 3-to-1 ratio, capped at $2,000 per account holder or $4,000 per household annually.

• Authorizes IDA funds for qualified purposes: home purchase, small business capitalization, postsecondary education, retirement savings, automobile purchase, and emergency withdrawals.

• Provides state income tax credit equal to 50% of matching funds contributed by taxpayers, limited to $25,000 annually per taxpayer with $100,000 total annual cap.

• Excludes IDA deposits and interest from gross income for tax purposes and removes them from asset calculations for need-based government assistance eligibility.

• Allocates up to $1,000,000 from the Emerging Crops Fund cash balance for matching contributions to fiduciary organizations.