SB 2624 Summary

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

• Fiduciary organizations approved by the Mississippi Development Authority administer IDAs and provide matching funds at a 3:1 ratio (up to $2,000 per account holder or $4,000 per household annually) for qualified purposes including homeownership, education, business startup, automobile purchase, and assistive technology.

• Account holders must complete financial literacy training and save for a minimum of six months before receiving matching funds; maximum individual deposits capped at $2,000 annually from earned income sources.

• Qualified withdrawals for authorized purposes are excluded from gross income and do not count as assets for means-tested public benefits; unauthorized withdrawals result in removal from the program and potential penalties.

• Allows individual and business taxpayers a state income tax credit equal to 50% of matching funds contributed to fiduciary organizations, limited to $25,000 per year with a statewide annual cap of $100,000 in tax credits.