AN ACT relating to Commonwealth individual development accounts.
     Create new sections of KRS Chapter 41 to create within the Office of the State Treasurer the Commonwealth Individual Development Account Program; authorize the State Treasurer to enter into contracts with qualified administering agencies; provide that an individual may submit an application to a qualified administering agency which shall coordinate arrangements between the individual and a financial institution to open an individual development account; authorize an individual, business, organization, or other entity to contribute matching funds to a qualified administering agency; permit an eligible individual or household to receive up to $2,000 in matching funds in a calendar years but no more than $10,000 during the existence of the account; allow funds to be withdrawn from the account for only qualified purposes or an emergency; define "qualified purposes" as costs for job training and postsecondary education, costs for purchase or repair of an automobile, costs to purchase or repair a primary residence, costs to purchase all or part of a business or to expand an existing small business, and costs to purchase a home computer; define "emergency withdrawal" as a withdrawal for medical care, to prevent eviction from a residence or mortgage foreclosure, and to enable the individual to meet living expenses upon loss of employment; prohibit an administering agency from using more than 15 percent of pooled fund accounts for administrative costs; require an administering agency to establish a financial education program which must be completed by individuals who establish individual development accounts; require the State Treasurer to collect data from the administering agencies on a quarterly basis; require the State Treasurer to file an annual report on the program with the Legislative Research Commission; provide that income from deposited funds that are withdrawn for a qualified purpose are excluded from adjusted gross income; create a new section of KRS Chapter 141 to provide that funds deposited in an administering agency's pooled account are eligible for a tax credit up to 25 percent of the amount contributed during a calendar year; provide that the credit for a taxable year cannot exceed the lesser of $10,000 or the amount of individual or corporate income tax due; permit an unused tax credit to be carried over for up to three years; provide that the total amount of tax credits per taxable year cannot exceed $1,000,000; amend KRS 141.010 and 141.0205 to conform.

     Jan 13-introduced in Senate
     Jan 16-to Appropriations and Revenue (S)