SB 82 (BR 486) - G. Neal
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in matching funds in a calendar years but no more than $10,000 during the existence of the account; allow funds to be withdrawn from the account for only qualified purposes or an emergency; define "qualified purposes" as costs for job training and postsecondary education, costs for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report on the program with the Legislative Research Commission; provide that income from deposited funds that are withdrawn for a qualified purpose are excluded from adjusted gross income; create a new section of KRS Chapter 141 to provide that funds deposited in an administering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)