04RS HB268


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HB 268 (BR 1192) - J. Hoover, S. Nunn, K. Stein

     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accounts" as accounts established within financial institutions by a qualified administering agency to match funds withdrawn from a Commonwealth Individual Development Account for a qualified purpose; restrict matching funds to $2,000 per year and limit total matching funds to no more than $10,000; limit administrative costs; exempt from income taxes funds deposited in or withdrawn from accounts; exempt from income taxes funds withdrawn from a pooled account and paid directly to a vendor for a qualified purpose; permit funds deposited in a pooled account to be eligible for a tax credit of 25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 13-introduced in House
     Jan 14-to Appropriations and Revenue (H)

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