Senate Bill 2589 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.

• Authorizes Mississippi Development Authority to contract with fiduciary organizations (nonprofits, credit unions, community development financial institutions) 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 homebuying, education, vocational training, business capitalization, automobile purchases, and assistive technology, with emergency withdrawals allowed if reimbursed within 12 months.

• Requires financial literacy education completion before accessing matching funds and imposes penalties for non-qualified withdrawals, with account holders removed from program for unauthorized use of funds.

• Provides state income tax credit equal to 50% of matching fund contributions (capped at $25,000 annually), excludes IDA deposits and earnings from gross income, and exempts IDA funds from means-tested public benefits calculations.