SB 3024 Summary

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

• Authorizes the Mississippi Department of Banking and Consumer Finance to contract with nonprofit fiduciary organizations to administer IDAs and provide matching funds at a 3:1 ratio (three dollars matching for every dollar contributed by account holder).

• Permits IDA funds to be used for postsecondary education, home purchases or repairs, small business capitalization, automobile purchases for employment/education, assistive technology, and qualified emergencies with reimbursement requirements.

• Excludes IDA deposits, interest earned, and qualified withdrawals from gross income for tax purposes and exempts account balances from consideration in determining eligibility for means-tested public benefits.

• Authorizes a state income tax credit equal to 50% of matching funds contributed by taxpayers, limited to $25,000 per year with a statewide annual cap of $3,000,000 in total credits certified.