Senate Bill 2132 Summary

• Creates the Family Savings Initiative Act to establish Individual Development Accounts (IDAs) for low-income individuals to accumulate assets for homeownership, education, microenterprise, retirement savings, and automobile purchase.

• Requires account holders to have gross household income not exceeding 200% of federal poverty level and net worth not exceeding $10,000.00 (excluding primary residence and one vehicle); fiduciary organizations provide $3.00 in matching funds for each $1.00 contributed by account holder, capped at $2,000.00 per individual or $4,000.00 per household annually.

• IDA funds and earned interest are excluded from income and asset calculations for determining eligibility for federal, state, and municipal needs-based assistance programs; unauthorized withdrawals result in loss of matching funds and potential account closure.

• Authorizes income tax credit of 50% of matching funds contributed by taxpayers to fiduciary organizations, limited to the lesser of $25,000.00 or actual income tax liability, with unused credits carrying forward three years; total annual credits capped at $100,000.00.

• Amends Section 27-7-15 to exclude interest or dividends earned on Individual Development Accounts from gross income for state income tax purposes.