Senate Bill 2027 Summary

• Creates the "Family Empowerment Act" to establish 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.

• Authorizes the Mississippi Development Authority to contract with nonprofit fiduciary organizations to serve as intermediaries managing IDAs and providing matching funds at a 3-to-1 ratio (up to $2,000 per account holder or $4,000 per household annually).

• Permits IDA funds to be used for home purchases, business capitalization, postsecondary education, retirement accounts, automobile purchases, and emergency withdrawals; imposes penalties for unauthorized withdrawals.

• Provides state income tax credits for taxpayers contributing matching funds to fiduciary organizations (50% of contribution amount, capped at $25,000 per year and $100,000 annually statewide).

• Appropriates up to $1,000,000 from the Emerging Crops Fund cash balance to contribute matching funds to fiduciary organizations and excludes IDA interest and dividends from state gross income taxation.