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; require the program to encourage an individual or household with an income below 200 percent of the federal poverty level to establish a savings account to be used for qualified purposes; define "qualified purposes" as postsecondary education expenses, first home purchases, business capitalization expenses, home renovation expenses, home computer expenses, and automobile expenses; direct the Treasurer to solicit proposals from qualified administering agencies to establish pooled accounts and implement the program; define "pooled accounts" as accounts established within financial institutions by a qualified administering agency to match funds withdrawn from a Commonwealth Individual Development Account for a qualified purpose; restrict matching funds to $2,000 per year and limit total matching funds to no more than $10,000; limit administrative costs; exempt from income taxes funds deposited in or withdrawn from accounts; exempt from income taxes funds withdrawn from a pooled account and paid directly to a vendor for a qualified purpose; permit funds deposited in a pooled account to be eligible for a tax credit of 25 percent of the amount of contribution during a calendar year but restrict credit to lesser of $10,000 or the amount of the individual or corporate income tax due; restrict total amount of credits to $1,000,000 per year; direct each qualifying administering agency to establish an appropriate financial education program for account participants which participants must complete to establish an account; amend KRS 141.010 and 141.0205 to conform.

     Jan 23-introduced in House
     Jan 24-to Appropriations and Revenue (H)