Senate Bill 2039 Summary

• Creates the Family Empowerment Initiative to establish Individual Development Accounts (IDAs) for low-income Mississippi residents with gross household income not exceeding 185% of federal poverty level and net worth not exceeding $10,000.

• Allows account holders to save funds from earned income for qualified purposes including postsecondary education, first-time homeownership, business capitalization, automobile purchase, assistive technology, and vocational training.

• Requires fiduciary organizations (nonprofits, credit unions, or community development financial institutions) to provide matching funds at a rate of $3 for every $1 contributed by account holders, capped at $2,000 per individual or $4,000 per household annually.

• Provides taxpayers a state income tax credit equal to 50% of matching funds contributed to fiduciary organizations, limited to $25,000 per year with carryover provisions and an aggregate annual cap of $100,000.

• Excludes IDA deposits and earnings from counting as income or assets for means-tested public benefits and amends tax code to exclude interest and dividends earned on IDAs from gross income.