Individual Development Accounts 2009-2014 Enactments

Last Updated: July 2014

Individual development accounts (IDA) is an asset building strategy to promote savings and investments. IDA's are matched savings accounts targeted for a specific use— typically home purchase, postsecondary education or small business capitalization.  This table provides summaries and links to enacted legislation related to IDA's in states for 2009-2014. 

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NCSL Contact:  Qiana Flores, Policy Associate, Denver, 303-364-7700


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STATES
2009-2012 ENACTED LEGISLATION
Arkansas

H.B. 1094 (2014)
Appropriates $1,700,000 the Department of Workforce Services for operating costs of the IDA Program.


H.B. 1160 (2013)
Appropriates $1,700,000 the Department of Workforce Services for operating costs of the IDA Program.


H.B. 1127 (2012)
Appropriates $1,700,000 the Department of Workforce Services for operating costs of the IDA Program.


H.B. 1035 (2010)
Appropriates $1,700,000 the Department of Workforce Services for operating costs of the IDA Program.


H.B. 1244 (2009)
Transfers $1.7 million from the IDA Trust Fund to the Department of Workforce Services IDA Porgram. The appropriation will cover operating expenses and reflects the previous year's allocation. NOTE: The IDA program is in transition between the Department of Human Services (DHS) and the Department of Workforce Services (DWS). The DHS currently handles eligibility rules, and the DWS provides case management. 

S.B. 807 (2009)
Removes confusing language from a statute concerning IDAs and clarifies that fiduciary organizations may be monitored by the Department of Workforce Services. 

Connecticut

H.B. 5596 (2014)
Appropriates $200,000 to the Labor Department for individual development accounts.


H.B. 6433 (2013)
Expands the ability to spend funds on more than just one of the designated areas. If a participant leaves the IDA program they forfeit the matched funds which will be retained in a local reserve fund to be used to match a new participant’s savings.


S.B. 1167 (2009)
Transfers $222,953 from the Individual Development Account Reserve Fund to be credited to the General Fund.

S.B. 2001 (2009)
Continues to exempt interest earned on IDA funds from state adjusted gross income. In other words, IDA interest is included in federal adjusted gross income but subtracted from consideration on the state level. The new language in the bill is supplying another subtraction. 

Hawaii

H.B 222 (2013)
Appropriates $415,000 in general funds and $415,000 in trust funds for fiscal year 2013-2014 and the same amounts again in the 2014-2015 fiscal year to the Office of Hawaiian Affairs to provide information on referral services, case management and counseling, IDAs, financial literacy training, and financial assistance.


H.B. 900 (2009)
Appropriates a total of $1,143,060 for social services such as referrals, case management and counseling, financial education, and the establishment of IDAs (building on an existing IDA program). 

Indiana

H.B. 1001 (2013)
Allocates $1,000,000 to Indiana individual development accounts in FY 2013-2014 and FY 2014-2015. Family and Social Services will apply all expenditures for IDAs to Indiana's maintenance of effort under TANF.


H.B. 1001 (2011)
Requires the Family and Social Services Administration, division of family resources shall apply all qualifying expenditures for IDA deposits toward Indiana's maintenance of effort under the federal Temporary Assistance for Needy Families (TANF) program.


S.B. 389 (2010)
Relates to students and information on individual development accounts; requires the caseworker of a foster child to provide information to the child concerning individual development accounts.


H.B. 64 (2009 - link not found)
Transfers $200,000 to the department of human rights for deposit in the individual development account state match fund.  These funds will be used as the state match to account holders affected by a natural disaster occurring in 2008 for which the president of the United States declared a disaster area, and who have a household income that is equal to or less than 300 percent of the federal poverty level.

H.B. 672 (2009 - link not found)
 Relates to individual development accounts available to certain persons with low income; clarifies that deposits to an account may receive a match payment. Also clarifies that to be eligible to open an account, a prospective account holder must have a household income that is equal to or less than two hundred percent of the federal poverty level.

Iowa

H.B 648 (2013)
Appropriates $100,000 for deposit in the IDA state match fund to support the operating organizations providing IDAs. Provides financial literacy education to participants.


H.F. 64 (2009)
Transfers $250,000 to the state Individual Development Account match fund. The money is to be distributed to account holders who were affected by a natural disaster (the Iowa floods) in 2008. To qualify, account holders must have income equal to or less than three hundred percent of the federal poverty level. 

H.F. 672 (2009)
Clarifies that to be eligible for an IDA, the prospective account holder must have income equal to or less than two hundred percent of the federal poverty level. Also refines language and removes certain redundancies. 

H.F. 811 (2009)
Appropriates $219,423 to an Iowa-based nonprofit that will assess and recommend various strategies for developing assets through savings (including IDAs and financial education). 

S.F. 449 (2009)
Adds the term "state savings match" to several places in a description of IDA rules.

Louisiana

H.B. 525 (2013)
Revises the law for the TANF funded IDAs by making the program contingent upon availability of funding.


H.B. 1 (2009)
Appropriates $1,500,000 for the implementation of an IDA program within the Department of Social Service's Office of Family Support. The program will focus on helping to move low-income people towards home ownership, business ownership, and educational advancement. Appropriates an additional $275,000 from the State General Fund to the Louisiana Association of United Ways for IDA programming. 

Minnesota

S.B. 1770 (2009)

Establishes the Ladder Out of Poverty Task Force; provides for its membership and duties; provides legislative appointments; relates to individual development account programs, elimination of predatory financial practices, private sector financial institution incentives, financial literacy information and incentives to increase community engagement in combating poverty.

New Mexico

S.B. 313 (2014)
Appropriates $100,000 to the Workforce Solutions Department for individual development accounts.


H.B. 2 (2009)
Appropriates $250,000 from the general fund to fulfill the provisions of the Individual Development Account Act (2003). 

S.B. 137 (2009)
Exempts IDA matching funds and interest from gross income tests, net income tests, and the cash payment calculation for determining public assistance eligibility. 

North Dakota

S.B. 2260 (2009)
Exempts funds in IDAs from assets and income when determining eligibility for public benefit programs. Also lays out definitions (of terms such as "household" and "IDA"), outlines the acceptable uses of IDA savings, and specifies the duties of community action agencies (the organizations that raise matching funds or distribute state matching funds). 

Oregon

H.B. 2316 (2013)
Excludes pension accounts holding up to $60,000 when determining IDA account eligibility.  


H.B. 2258 (2009)
Changes IDA eligibility rules to include households with income less than or equal to the greater of the following: 1) 80 percent of the median household income for the area or 2) 200 percent of the poverty level given by the state. NOTE: In 2007, the only criterion was 80 percent of the median household income. The 200 percent stipulation was added this year. 

Utah

H.B. 209 (2013)
Money saved in individual development accounts will not be considered when determining eligibility for the Family Employment Program.


H.B. 91 (2009)
Specifies that IDA funds may be used for the purchase of assistive technologies that allow disabled people to participate in "work-related activities."

Vermont

H.B. 313 (2009)
States the intent of the general assembly to enhance IDA and microbusiness programs. Calls for a study to evaluate tax credits for people or businesses that match IDA savings.