HB 101 Summary

• Establishes Individual Development Accounts (IDAs) to help low-income Mississippi residents accumulate assets for home ownership, small business development, education, and family stabilization.

• Requires the Department of Human Services to contract with nonprofit fiduciary organizations to administer IDAs; eligible individuals must have household income at or below 200% of federal poverty level and net worth not exceeding $10,000 (excluding primary home and vehicle).

• Provides 3-to-1 matching funds ($3 state match per $1 individual contribution) up to $2,000 per person or $4,000 per household annually; requires fiduciary organizations to use at least 70% of contract funds for matching contributions and no more than 30% for operating costs.

• Allows IDA funds to be used only for qualified purposes: home purchases meeting energy efficiency standards, small business capitalization expenses, postsecondary education expenses, and qualified emergency withdrawals.

• Exempts interest and dividends earned on IDAs and matching funds from state income tax; creates Individual Development Account Trust Fund from Transitional Employment Assistance Program funds; requires quarterly reporting by fiduciary organizations to the Department of Human Services.