Senate Bill 2027 Summary

• Creates the Family Savings Initiative Act to establish 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 manage 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 homeownership, small business capitalization, postsecondary education, retirement accounts, automobile purchase, and qualified emergency withdrawals.

• Establishes a state income tax credit equal to 50% of matching fund contributions made by taxpayers, capped at $25,000 per year and $100,000 total annually, with unused credits carried over for three years.

• Excludes IDA deposits and interest earned from counting as income or assets for determining eligibility in need-based assistance programs and amends tax law to exclude IDA interest or dividends from gross income.