HB 560 Summary

• Establishes the Family Empowerment Initiative to create 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.

• Authorizes the Mississippi Development Authority to contract with fiduciary organizations (nonprofits, community development financial institutions, or credit unions) to administer IDAs and provide matching funds at a 3:1 ratio, capped at $2,000 per account holder or $4,000 per household annually.

• Permits IDA funds to be used for qualified purposes including postsecondary education, home purchases or repairs, small business capitalization, automobile purchases, and assistive technology for people with disabilities; emergency withdrawals allowed with required repayment within 12 months.

• Provides a state income tax credit equal to 50% of matching funds contributed by taxpayers to fiduciary organizations, limited to $25,000 annually per taxpayer with a maximum of $100,000 in total credits per calendar year.

• Excludes IDA deposits, earnings, and qualified withdrawals from gross income for tax purposes and from asset calculations for means-tested public benefit eligibility determinations.