HB 1386 Summary

• Establishes the Family Savings Initiative Act to create Individual Development Accounts (IDAs) for low-income individuals with gross household income not exceeding 200% of federal poverty level and net worth not exceeding $10,000.

• Authorizes the Department of Human Services to contract with nonprofit fiduciary organizations to administer IDAs and provide matching funds at a 3:1 ratio (up to $2,000 per account holder or $4,000 per household annually).

• Permits IDA funds to be used for qualified purposes including homeownership, small business capitalization, postsecondary education, retirement accounts, and vehicle purchase, with penalties for unauthorized withdrawals.

• Allows taxpayers contributing matching funds to fiduciary organizations to claim an income tax credit equal to 50% of their contribution, capped at $25,000 annually per taxpayer with a $100,000 statewide annual limit.

• Excludes IDA deposits and interest or dividend earnings from counting as income or assets when determining eligibility for need-based public assistance programs.