I 

113TH CONGRESS 

1ST SESSION H. R. 2964 

To establish and provide for the treatment of Individual Development 

Accounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 1, 2013 

Mr. PITTS introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To establish and provide for the treatment of Individual 

Development Accounts, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) IN GENERAL.—This Act may be cited as the 

5 ‘‘Savings for Working Families Act of 2013’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

Sec. 4. Structure and administration of qualified Individual Development Account programs. 

Sec. 5. Procedures for opening and maintaining an Individual Development Account and qualifying for matching funds. 


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Sec. 6. Deposits by qualified Individual Development Account programs. 

Sec. 7. Withdrawal procedures. 

Sec. 8. Certification and termination of qualified Individual Development Account programs. 

Sec. 9. Reporting, monitoring, and evaluation. 

Sec. 10. Authorization of appropriations. 

Sec. 11. Matching funds for Individual Development Accounts provided through 

a tax credit for qualified financial institutions. 

Sec. 12. Account funds disregarded for purposes of certain means-tested Federal programs. 

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are to provide for the estab3 lishment of individual development account programs that 

4 will— 

5 (1) provide individuals and families with limited 

6 means an opportunity to accumulate assets and to 

7 enter the financial mainstream, 

8 (2) promote education, homeownership, and the 

9 development of small businesses, 

10 (3) stabilize families and build communities, 

11 and 

12 (4) support continued United States economic 

13 expansion. 

14 SEC. 3. DEFINITIONS. 

15 As used in this Act: 

16 (1) ELIGIBLE INDIVIDUAL.— 

17 (A) IN GENERAL.—The term ‘‘eligible indi18 vidual’’ means, with respect to any taxable year, 

19 an individual who— 


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1 (i) has attained the age of 18 but not 

2 the age of 61 as of the last day of such 

3 taxable year, 

4 (ii) is a citizen or lawful permanent 

5 resident (within the meaning of section 

6 7701(b)(6) of the Internal Revenue Code 

7 of 1986) of the United States as of the 

8 last day of such taxable year, 

9 (iii) was not a student (as defined in 

10 section 152(f)(2) of such Code) for the im11 mediately preceding taxable year, 

12 (iv) is not an individual with respect 

13 to whom a deduction under section 151 of 

14 such Code is allowable to another taxpayer 

15 for a taxable year of the other taxpayer 

16 ending during the immediately preceding 

17 taxable year of the individual, 

18 (v) is not a taxpayer described in sub19 section (c), (d), (e), or (f) of section 6402 

20 of such Code for the immediately preceding 

21 taxable year, 

22 (vi) is not a taxpayer described in sec23 tion 1(d) of such Code for the immediately 

24 preceding taxable year, and 


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1 (vii) is a taxpayer the modified ad2 justed gross income of whom for the imme3 diately preceding taxable year does not ex4 ceed— 

5 (I) $20,000, in the case of a tax6 payer described in section 1(c) of such 

7 Code, 

8 (II) $30,000, in the case of a 

9 taxpayer described in section 1(b) of 

10 such Code, and 

11 (III) $40,000, in the case of a 

12 taxpayer described in section 1(a) of 

13 such Code. 

14 (B) INFLATION ADJUSTMENT.— 

15 (i) IN GENERAL.—In the case of any 

16 taxable year beginning after 2014, each 

17 dollar amount referred to in subparagraph 

18 (A)(vii) shall be increased by an amount 

19 equal to— 

20 (I) such dollar amount, multi21 plied by 

22 (II) the cost-of-living adjustment 

23 determined under section (1)(f)(3) of 

24 the Internal Revenue Code of 1986 

25 for the calendar year in which the taxVerDate Mar 15 2010 00:15 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2964.IH H2964

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1 able year begins, by substituting 

2 ‘‘2013’’ for ‘‘1992’’. 

3 (ii) ROUNDING.—If any amount as 

4 adjusted under clause (i) is not a multiple 

5 of $50, such amount shall be rounded to 

6 the nearest multiple of $50. 

7 (C) MODIFIED ADJUSTED GROSS IN8 COME.—For purposes of subparagraph (A)(v), 

9 the term ‘‘modified adjusted gross income’’ 

10 means adjusted gross income— 

11 (i) determined without regard to sec12 tions 86, 893, 911, 931, and 933 of the 

13 Internal Revenue Code of 1986, and 

14 (ii) increased by the amount of inter15 est received or accrued by the taxpayer 

16 during the taxable year which is exempt 

17 from tax. 

18 (2) INDIVIDUAL DEVELOPMENT ACCOUNT.— 

19 The term ‘‘Individual Development Account’’ means 

20 an account established for an eligible individual as 

21 part of a qualified individual development account 

22 program, but only if the written governing instru23 ment creating the account meets the following re24 quirements: 


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1 (A) The owner of the account is the indi2 vidual for whom the account was established. 

3 (B) No contribution will be accepted unless 

4 it is in cash, and, except in the case of any 

5 qualified rollover, contributions will not be ac6 cepted for the taxable year in excess of $1,500 

7 on behalf of any individual. 

8 (C) The trustee of the account is a quali9 fied financial institution. 

10 (D) The assets of the account will not be 

11 commingled with other property except in a 

12 common trust fund or common investment 

13 fund. 

14 (E) Except as provided in section 7(b), any 

15 amount in the account may be paid out only for 

16 the purpose of paying the qualified expenses of 

17 the account owner. 

18 (3) PARALLEL ACCOUNT.—The term ‘‘parallel 

19 account’’ means a separate, parallel individual or 

20 pooled account for all matching funds and earnings 

21 dedicated to an Individual Development Account 

22 owner as part of a qualified individual development 

23 account program, the trustee of which is a qualified 

24 financial institution. 

25 (4) QUALIFIED FINANCIAL INSTITUTION.— 


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1 (A) IN GENERAL.—The term ‘‘qualified fi2 nancial institution’’ means any person author3 ized to be a trustee of any individual retirement 

4 account under section 408(a)(2) of the Internal 

5 Revenue Code of 1986. 

6 (B) RULE OF CONSTRUCTION.— 

7 (i) IN GENERAL.—Nothing in this 

8 paragraph shall be construed as preventing 

9 a person described in subparagraph (A) 

10 from collaborating with 1 or more qualified 

11 nonprofit organizations or Indian tribes to 

12 carry out an individual development ac13 count program established under section 4. 

14 (ii) QUALIFIED NONPROFIT ORGANI15 ZATION.—The term ‘‘qualified nonprofit 

16 organization’’ means— 

17 (I) any organization described in 

18 section 501(c)(3) of the Internal Rev19 enue Code of 1986 and exempt from 

20 taxation under section 501(a) of such 

21 Code, 

22 (II) any community development 

23 financial institution certified by the 

24 Community Development Financial 

25 Institution Fund, 


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1 (III) any credit union chartered 

2 under Federal or State law, or 

3 (IV) any public housing agency 

4 as defined in section 3(b)(6) of the 

5 United States Housing Act of 1937 

6 (42 U.S.C. 1437a(b)(6)). 

7 (iii) INDIAN TRIBE.—The term ‘‘In8 dian tribe’’ means any Indian tribe as de9 fined in section 4(12) of the Native Amer10 ican Housing Assistance and Self-Deter11 mination Act of 1996 (25 U.S.C. 

12 4103(12)), and includes any tribally des13 ignated housing entity (as defined in sec14 tion 4(21)) of such Act (25 U.S.C. 

15 4103(21)), tribal subsidiary, subdivision, 

16 or other wholly owned tribal entity. 

17 (5) QUALIFIED INDIVIDUAL DEVELOPMENT AC18 COUNT PROGRAM.—The term ‘‘qualified individual 

19 development account program’’ means a program es20 tablished upon approval of the Secretary under sec21 tion 4 after December 31, 2013, under which— 

22 (A) Individual Development Accounts and 

23 parallel accounts are held in trust by a qualified 

24 financial institution, and 


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1 (B) additional activities determined by the 

2 Secretary, in consultation with the Secretary of 

3 Health and Human Services, as necessary to re4 sponsibly develop and administer accounts, in5 cluding recruiting, providing financial education 

6 and other training to Account owners, and reg7 ular program monitoring, are carried out by the 

8 qualified financial institution. 

9 (6) QUALIFIED EXPENSE DISTRIBUTION.— 

10 (A) IN GENERAL.—The term ‘‘qualified ex11 pense distribution’’ means any amount paid (in12 cluding through electronic payments) or distrib13 uted out of an Individual Development Account 

14 or a parallel account established for an eligible 

15 individual if such amount— 

16 (i) is used exclusively to pay the quali17 fied expenses of the Individual Develop18 ment Account owner or such owner’s 

19 spouse or dependents, 

20 (ii) is paid by the qualified financial 

21 institution— 

22 (I) except as otherwise provided 

23 in this clause, directly to the unre24 lated third party to whom the amount 

25 is due, 


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1 (II) in the case of any qualified 

2 rollover, directly to another Individual 

3 Development Account and parallel ac4 count, or 

5 (III) in the case of a qualified 

6 final distribution, directly to the 

7 spouse, dependent, or other named 

8 beneficiary of the deceased Account 

9 owner, and 

10 (iii) is paid after the Account owner 

11 has completed a financial education course 

12 if required under section 5(b). 

13 (B) QUALIFIED EXPENSES.— 

14 (i) IN GENERAL.—The term ‘‘qualified 

15 expenses’’ means any of the following ex16 penses approved by the qualified financial 

17 institution: 

18 (I) Qualified higher education ex19 penses. 

20 (II) Qualified first-time home21 buyer costs. 

22 (III) Qualified business capital23 ization or expansion costs. 

24 (IV) Qualified rollovers. 

25 (V) Qualified final distribution. 


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1 (ii) QUALIFIED HIGHER EDUCATION

2 EXPENSES.— 

3 (I) IN GENERAL.—The term 

4 ‘‘qualified higher education expenses’’ 

5 has the meaning given such term by 

6 section 529(e)(3) of the Internal Rev7 enue Code of 1986, determined by 

8 treating the Account owner, the own9 er’s spouse, or one or more of the 

10 owner’s dependents as a designated 

11 beneficiary, and reduced as provided 

12 in section 25A(g)(2) of such Code. 

13 (II) COORDINATION WITH OTHER

14 BENEFITS.—The amount of expenses 

15 which may be taken into account for 

16 purposes of section 135, 529, or 530 

17 of such Code for any taxable year 

18 shall be reduced by the amount of any 

19 qualified higher education expenses 

20 taken into account as qualified ex21 pense distributions during such tax22 able year. 

23 (iii) QUALIFIED FIRST-TIME HOME24 BUYER COSTS.—The term ‘‘qualified first25 time homebuyer costs’’ means qualified acVerDate Mar 15 2010 00:15 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2964.IH H2964

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1 quisition costs (as defined in section 

2 72(t)(8)(C) of the Internal Revenue Code 

3 of 1986) with respect to a principal resi4 dence (within the meaning of section 121 

5 of such Code) for a qualified first-time 

6 homebuyer (as defined in section 

7 72(t)(8)(D)(i) of such Code). 

8 (iv) QUALIFIED BUSINESS CAPITAL9 IZATION OR EXPANSION COSTS.— 

10 (I) IN GENERAL.—The term 

11 ‘‘qualified business capitalization or 

12 expansion costs’’ means qualified ex13 penditures for the capitalization or ex14 pansion of a qualified business pursu15 ant to a qualified business plan. 

16 (II) QUALIFIED EXPENDI17 TURES.—The term ‘‘qualified expendi18 tures’’ means expenditures normally 

19 associated with starting or expanding 

20 a business and included in a qualified 

21 business plan, including costs for cap22 ital, plant, and equipment, inventory 

23 expenses, and attorney and accounting 

24 fees. 


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1 (III) QUALIFIED BUSINESS.— 

2 The term ‘‘qualified business’’ means 

3 any business that does not contravene 

4 any law. 

5 (IV) QUALIFIED BUSINESS

6 PLAN.—The term ‘‘qualified business 

7 plan’’ means a business plan which 

8 has been approved by the qualified fi9 nancial institution and which meets 

10 such requirements as the Secretary 

11 may specify. 

12 (v) QUALIFIED ROLLOVERS.—The 

13 term ‘‘qualified rollover’’ means the com14 plete distribution of the amounts in an In15 dividual Development Account and parallel 

16 account to another Individual Development 

17 Account and parallel account established in 

18 another qualified financial institution for 

19 the benefit of the Account owner. 

20 (vi) QUALIFIED FINAL DISTRIBU21 TION.—The term ‘‘qualified final distribu22 tion’’ means, in the case of a deceased Ac23 count owner, the complete distribution of 

24 the amounts in the Individual Development 

25 Account and parallel account directly to 


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1 the spouse, any dependent, or other named 

2 beneficiary of the deceased. 

3 (7) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of the Treasury. 

5 SEC. 4. STRUCTURE AND ADMINISTRATION OF QUALIFIED 

6 INDIVIDUAL DEVELOPMENT ACCOUNT PRO7 GRAMS. 

8 (a) ESTABLISHMENT OF QUALIFIED INDIVIDUAL DE9 VELOPMENT ACCOUNT PROGRAMS.—Any qualified finan10 cial institution may apply to the Secretary for approval 

11 to establish 1 or more qualified individual development ac12 count programs which meet the requirements of this Act. 

13 (b) BASIC PROGRAM STRUCTURE.— 

14 (1) IN GENERAL.—All qualified individual de15 velopment account programs shall consist of the fol16 lowing 2 components for each participant: 

17 (A) An Individual Development Account to 

18 which an eligible individual may contribute cash 

19 in accordance with section 5. 

20 (B) A parallel account to which all match21 ing funds shall be deposited in accordance with 

22 section 6. 

23 (2) TAILORED IDA PROGRAMS.—A qualified fi24 nancial institution may tailor its qualified individual 

25 development account program to allow matching 


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1 funds to be spent on 1 or more of the categories of 

2 qualified expenses. 

3 (c) COORDINATION WITH PUBLIC HOUSING AGENCY

4 INDIVIDUAL SAVINGS ACCOUNTS.—Section 3(e)(2) of the 

5 United States Housing Act of 1937 (42 U.S.C. 

6 1437a(e)(2)) is amended by inserting ‘‘or in any Indi7 vidual Development Account established under the Sav8 ings for Working Families Act of 2013’’ after ‘‘sub9 section’’. 

10 (d) TAX TREATMENT OF PARALLEL ACCOUNTS.— 

11 (1) IN GENERAL.—Chapter 77 of the Internal 

12 Revenue Code of 1986 (relating to miscellaneous 

13 provisions) is amended by adding at the end the fol14 lowing new section: 

15 ‘‘SEC. 7529. TAX INCENTIVES FOR INDIVIDUAL DEVELOP16 MENT PARALLEL ACCOUNTS. 

17 ‘‘For purposes of this title— 

18 ‘‘(1) any account described in section 

19 4(b)(1)(B) of the Savings for Working Families Act 

20 of 2013 shall be exempt from taxation, 

21 ‘‘(2) except as provided in section 45S, no item 

22 of income, expense, basis, gain, or loss with respect 

23 to such an account may be taken into account, and 

24 ‘‘(3) any amount withdrawn from such an ac25 count shall not be includible in gross income.’’. 


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1 (2) CONFORMING AMENDMENT.—The table of 

2 sections for chapter 77 of such Code is amended by 

3 adding at the end the following new item: 

‘‘Sec. 7529. Tax incentives for individual development parallel accounts.’’. 

4 (e) COORDINATION OF CERTAIN EXPENSES.—Sec5 tion 25A(g)(2) of such Code is amended by striking ‘‘and’’ 

6 at the end of subparagraph (B), by striking the period 

7 at the end of subparagraph (C) and inserting ‘‘, and’’, and 

8 by adding at the end the following new subparagraph: 

9 ‘‘(D) a qualified expense distribution with 

10 respect to qualified higher education expenses 

11 from an Individual Development Account or a 

12 parallel account under section 7(a) of the Sav13 ings for Working Families Act of 2013.’’. 

14 SEC. 5. PROCEDURES FOR OPENING AND MAINTAINING AN 

15 INDIVIDUAL DEVELOPMENT ACCOUNT AND 

16 QUALIFYING FOR MATCHING FUNDS. 

17 (a) OPENING AN ACCOUNT.—An eligible individual 

18 may open an Individual Development Account with a 

19 qualified financial institution upon certification that such 

20 individual has never maintained any other Individual De21 velopment Account (other than an Individual Development 

22 Account to be terminated by a qualified rollover). 

23 (b) REQUIRED COMPLETION OF FINANCIAL EDU24 CATION COURSE.— 


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1 (1) IN GENERAL.—Before becoming eligible to 

2 withdraw funds to pay for qualified expenses, owners 

3 of Individual Development Accounts must complete 

4 1 or more financial education courses specified in 

5 the qualified individual development account pro6 gram. 

7 (2) STANDARD AND APPLICABILITY OF

8 COURSE.—The Secretary, in consultation with rep9 resentatives of qualified individual development ac10 count programs and financial educators, shall not 

11 later than January 1, 2010, establish minimum 

12 quality standards for the contents of financial edu13 cation courses and providers of such courses de14 scribed in paragraph (1) and a protocol to exempt 

15 individuals from the requirement under paragraph 

16 (1) in the case of hardship, lack of need, the attain17 ment of age 65, or a qualified final distribution. 

18 (c) PROOF OF STATUS AS AN ELIGIBLE INDI19 VIDUAL.—Federal income tax forms for the immediately 

20 preceding taxable year and any other evidence of eligibility 

21 which may be required by a qualified financial institution 

22 shall be presented to such institution at the time of the 

23 establishment of the Individual Development Account and 

24 in any taxable year in which contributions are made to 


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1 the Account to qualify for matching funds under section 

2 6(b)(1)(A). 

3 (d) SPECIAL RULE IN THE CASE OF MARRIED INDI4 VIDUALS.—For purposes of this Act, if, with respect to 

5 any taxable year, 2 married individuals file a Federal joint 

6 income tax return, then not more than 1 of such individ7 uals may be treated as an eligible individual with respect 

8 to the succeeding taxable year. 

9 SEC. 6. DEPOSITS BY QUALIFIED INDIVIDUAL DEVELOP10 MENT ACCOUNT PROGRAMS. 

11 (a) PARALLEL ACCOUNTS.—The qualified financial 

12 institution shall deposit all matching funds for each Indi13 vidual Development Account into a parallel account at a 

14 qualified financial institution. 

15 (b) REGULAR DEPOSITS OF MATCHING FUNDS.— 

16 (1) IN GENERAL.—Subject to paragraph (2), 

17 the qualified financial institution shall deposit into 

18 the parallel account with respect to each eligible in19 dividual the following amounts: 

20 (A) A dollar-for-dollar match for the first 

21 $500 contributed by the eligible individual into 

22 an Individual Development Account with re23 spect to any taxable year of such individual. 


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1 (B) Any matching funds provided by State, 

2 local, or private sources in accordance with the 

3 matching ratio set by those sources. 

4 (2) TIMING OF DEPOSITS.—A deposit of the 

5 amounts described in paragraph (1) shall be made 

6 into a parallel account— 

7 (A) in the case of amounts described in 

8 paragraph (1)(A), not later than 30 days after 

9 the end of the calendar quarter during which 

10 the contribution described in such paragraph 

11 was made, and 

12 (B) in the case of amounts described in 

13 paragraph (1)(B), not later than 2 business 

14 days after such amounts were provided. 

15 (3) CROSS REFERENCE.—For allowance of tax 

16 credit for Individual Development Account subsidies, 

17 including matching funds, see section 45S of the In18 ternal Revenue Code of 1986. 

19 (c) DEPOSIT OF MATCHING FUNDS INTO INDI20 VIDUAL DEVELOPMENT ACCOUNT OF INDIVIDUAL WHO

21 HAS ATTAINED AGE 65.—In the case of an Individual De22 velopment Account owner who attains the age of 65, the 

23 qualified financial institution shall deposit the funds in the 

24 parallel account with respect to such individual into the 


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1 Individual Development Account of such individual on the 

2 later of— 

3 (1) the day which is the 1-year anniversary of 

4 the deposit of such funds in the parallel account, or 

5 (2) the first business day of the taxable year of 

6 such individual following the taxable year in which 

7 such individual attained age 65. 

8 (d) UNIFORM ACCOUNTING REGULATIONS.—To en9 sure proper recordkeeping and determination of the tax 

10 credit under section 45S of the Internal Revenue Code of 

11 1986, the Secretary shall prescribe regulations with re12 spect to accounting for matching funds in the parallel ac13 counts. 

14 (e) REGULAR REPORTING OF ACCOUNTS.—Any 

15 qualified financial institution shall report the balances in 

16 any Individual Development Account and parallel account 

17 of an individual on not less than an annual basis to such 

18 individual. 

19 SEC. 7. WITHDRAWAL PROCEDURES. 

20 (a) WITHDRAWALS FOR QUALIFIED EXPENSES.— 

21 (1) IN GENERAL.—An Individual Development 

22 Account owner may withdraw funds in order to pay 

23 qualified expense distributions from such individ24 ual’s— 


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1 (A) Individual Development Account, but 

2 only from funds which have been on deposit in 

3 such Account for at least 1 year, and 

4 (B) parallel account, but only— 

5 (i) from matching funds which have 

6 been on deposit in such parallel account 

7 for at least 1 year, 

8 (ii) from earnings in such parallel ac9 count, after all matching funds described 

10 in clause (i) have been withdrawn, and 

11 (iii) to the extent such withdrawal 

12 does not result in a remaining balance in 

13 such parallel account which is less than the 

14 remaining balance in the Individual Devel15 opment Account after such withdrawal. 

16 (2) PROCEDURE.—Upon receipt of a with17 drawal request which meets the requirements of 

18 paragraph (1), the qualified financial institution 

19 shall directly transfer the funds electronically to the 

20 distributees described in section 3(6)(A)(ii). If a dis21 tributee is not equipped to receive funds electroni22 cally, the qualified financial institution may issue 

23 such funds by paper check to the distributee. 

24 (b) WITHDRAWALS FOR NONQUALIFIED EX25 PENSES.—An Individual Development Account owner may 


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1 withdraw any amount of funds from the Individual Devel2 opment Account for purposes other than to pay qualified 

3 expense distributions, but if, after such withdrawal, the 

4 amount in the parallel account of such owner (excluding 

5 earnings on matching funds) exceeds the amount remain6 ing in such Individual Development Account, then such 

7 owner shall forfeit from the parallel account the lesser of 

8 such excess or the amount withdrawn. 

9 (c) WITHDRAWALS FROM ACCOUNTS OF NON10 ELIGIBLE INDIVIDUALS.—If the individual for whose ben11 efit an Individual Development Account is established 

12 ceases to be an eligible individual, such account shall re13 main an Individual Development Account, but such indi14 vidual shall not be eligible for any further matching funds 

15 under section 6(b)(1)(A) for contributions which are made 

16 to the Account during any taxable year when such indi17 vidual is not an eligible individual. 

18 (d) EFFECT OF PLEDGING ACCOUNT AS SECU19 RITY.—If, during any taxable year of the individual for 

20 whose benefit an Individual Development Account is es21 tablished, that individual uses the Account, the individ22 ual’s parallel account, or any portion thereof as security 

23 for a loan, the portion so used shall be treated as a with24 drawal of such portion from the Individual Development 

25 Account for purposes other than to pay qualified expenses. 


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1 SEC. 8. CERTIFICATION AND TERMINATION OF QUALIFIED 

2 INDIVIDUAL DEVELOPMENT ACCOUNT PRO3 GRAMS. 

4 (a) CERTIFICATION PROCEDURES.—Upon estab5 lishing a qualified individual development account pro6 gram under section 4, a qualified financial institution shall 

7 certify to the Secretary at such time and in such manner 

8 as may be prescribed by the Secretary and accompanied 

9 by any documentation required by the Secretary, that— 

10 (1) the accounts described in subparagraphs 

11 (A) and (B) of section 4(b)(1) are operating pursu12 ant to all the provisions of this Act, and 

13 (2) the qualified financial institution agrees to 

14 implement an information system necessary to mon15 itor the cost and outcomes of the qualified individual 

16 development account program. 

17 (b) AUTHORITY TO TERMINATE QUALIFIED IDA 

18 PROGRAM.—If the Secretary determines that a qualified 

19 financial institution under this Act is not operating a 

20 qualified individual development account program in ac21 cordance with the requirements of this Act (and has not 

22 implemented any corrective recommendations directed by 

23 the Secretary), the Secretary shall terminate such institu24 tion’s authority to conduct the program. If the Secretary 

25 is unable to identify a qualified financial institution to as26 sume the authority to conduct such program, then any 


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1 funds in a parallel account established for the benefit of 

2 any individual under such program shall be deposited into 

3 the Individual Development Account of such individual as 

4 of the first day of such termination. 

5 SEC. 9. REPORTING, MONITORING, AND EVALUATION. 

6 (a) RESPONSIBILITIES OF QUALIFIED FINANCIAL IN7 STITUTIONS.—Each qualified financial institution that op8 erates a qualified individual development account program 

9 under section 4 shall report annually to the Secretary 

10 within 90 days after the end of each calendar year on— 

11 (1) the number of individuals making contribu12 tions into Individual Development Accounts and the 

13 amounts contributed, 

14 (2) the amounts contributed into Individual De15 velopment Accounts by eligible individuals and the 

16 amounts deposited into parallel accounts for match17 ing funds, 

18 (3) the amounts withdrawn from Individual De19 velopment Accounts and parallel accounts, and the 

20 purposes for which such amounts were withdrawn, 

21 (4) the balances remaining in Individual Devel22 opment Accounts and parallel accounts, and 

23 (5) such other information needed to help the 

24 Secretary monitor the effectiveness of the qualified 


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1 individual development account program (provided in 

2 a non-individually identifiable manner). 

3 (b) RESPONSIBILITIES OF THE SECRETARY.— 

4 (1) MONITORING PROTOCOL.—Not later than 

5 12 months after the date of the enactment of this 

6 Act, the Secretary, in consultation with the Sec7 retary of Health and Human Services, shall develop 

8 and implement a protocol and process to monitor the 

9 cost and outcomes of the qualified individual devel10 opment account programs established under section 

11 4. 

12 (2) ANNUAL REPORTS.—For each year after 

13 2014, the Secretary shall submit a progress report 

14 to Congress on the status of such qualified indi15 vidual development account programs. Such report 

16 shall, to the extent data are available, include from 

17 a representative sample of qualified individual devel18 opment account programs information on— 

19 (A) the characteristics of participants, in20 cluding age, gender, race or ethnicity, marital 

21 status, number of children, employment status, 

22 and monthly income, 

23 (B) deposits, withdrawals, balances, uses 

24 of Individual Development Accounts, and par25 ticipant characteristics, 


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1 (C) the characteristics of qualified indi2 vidual development account programs, including 

3 match rate, economic education requirements, 

4 and permissible uses of accounts, and 

5 (D) process information on program imple6 mentation and administration, especially on 

7 problems encountered and how problems were 

8 solved. 

9 (3) USE OF ACCOUNTS IN RURAL AREAS EN10 COURAGED.—The Secretary shall develop methods to 

11 encourage the use of Individual Development Ac12 counts in rural areas. 

13 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

14 (a) IN GENERAL.—There is authorized to be appro15 priated to the Secretary $3,000,000 for fiscal year 2014 

16 and for each fiscal year through 2019, for the purposes 

17 of implementing this Act, including the reporting, moni18 toring, and evaluation required under section 9, to remain 

19 available until expended. 

20 (b) GRANTS.—There is authorized to be appropriated 

21 to the Secretary $120,000,000— 

22 (1) to make grants to qualified nonprofit orga23 nizations and Indian tribes to help defray the ad24 ministrative costs associated with the operation of 


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1 individual development account programs, including 

2 the required financial education courses, and 

3 (2) to provide technical assistance to qualified 

4 nonprofit organizations and Indian tribes in meeting 

5 such program requirements. 

6 SEC. 11. MATCHING FUNDS FOR INDIVIDUAL DEVELOP7 MENT ACCOUNTS PROVIDED THROUGH A TAX 

8 CREDIT FOR QUALIFIED FINANCIAL INSTITU9 TIONS. 

10 (a) IN GENERAL.—Subpart D of part IV of sub11 chapter A of chapter 1 of the Internal Revenue Code of 

12 1986 (relating to business related credits) is amended by 

13 adding at the end the following new section: 

14 ‘‘SEC. 45S. INDIVIDUAL DEVELOPMENT ACCOUNT INVEST15 MENT CREDIT. 

16 ‘‘(a) DETERMINATION OF AMOUNT.—For purposes of 

17 section 38, the individual development account investment 

18 credit determined under this section with respect to any 

19 eligible entity for any taxable year is an amount equal to 

20 the individual development account investment provided 

21 by such eligible entity during the taxable year under an 

22 individual development account program established under 

23 section 4 of the Savings for Working Families Act of 

24 2013. 


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1 ‘‘(b) APPLICABLE TAX.—For the purposes of this 

2 section, the term ‘applicable tax’ means the excess (if any) 

3 of— 

4 ‘‘(1) the tax imposed under this chapter (other 

5 than the taxes imposed under the provisions de6 scribed in subparagraphs (C) through (Q) of section 

7 26(b)(2)), over 

8 ‘‘(2) the credits allowable under subpart B 

9 (other than this section) and subpart D of this part. 

10 ‘‘(c) INDIVIDUAL DEVELOPMENT ACCOUNT INVEST11 MENT.—For purposes of this section, the term ‘individual 

12 development account investment’ means, with respect to 

13 an individual development account program in any taxable 

14 year, an amount equal to the sum of— 

15 ‘‘(1) the aggregate amount of dollar-for-dollar 

16 matches under such program under section 

17 6(b)(1)(A) of the Savings for Working Families Act 

18 of 2013 for such taxable year, plus 

19 ‘‘(2) $50 with respect to each Individual Devel20 opment Account maintained— 

21 ‘‘(A) as of the end of such taxable year, 

22 but only if such taxable year is within the 7- 

23 taxable-year period beginning with the taxable 

24 year in which such Account is opened, and 


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1 ‘‘(B) with a balance of not less than $100 

2 (other than the taxable year in which such Ac3 count is opened). 

4 ‘‘(d) ELIGIBLE ENTITY.—For purposes of this sec5 tion, except as provided in regulations, the term ‘eligible 

6 entity’ means a qualified financial institution. 

7 ‘‘(e) OTHER DEFINITIONS.—For purposes of this 

8 section, any term used in this section and also in the Sav9 ings for Working Families Act of 2013 shall have the 

10 meaning given such term by such Act. 

11 ‘‘(f) DENIAL OF DOUBLE BENEFIT.— 

12 ‘‘(1) IN GENERAL.—No deduction or credit 

13 (other than under this section) shall be allowed 

14 under this chapter with respect to any expense 

15 which— 

16 ‘‘(A) is taken into account under sub17 section (c)(1)(A) in determining the credit 

18 under this section, or 

19 ‘‘(B) is attributable to the maintenance of 

20 an Individual Development Account. 

21 ‘‘(2) DETERMINATION OF AMOUNT.—Solely for 

22 purposes of paragraph (1)(B), the amount attrib23 utable to the maintenance of an Individual Develop24 ment Account shall be deemed to be the dollar 

25 amount of the credit allowed under subsection 


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1 (c)(l)(B) for each taxable year such Individual De2 velopment Account is maintained. 

3 ‘‘(g) CREDIT MAY BE TRANSFERRED.— 

4 ‘‘(1) IN GENERAL.—An eligible entity may 

5 transfer any credit allowable to the eligible entity 

6 under subsection (a) to any person other than to an7 other eligible entity which is exempt from tax under 

8 this title. The determination as to whether a credit 

9 is allowable shall be made without regard to the tax10 exempt status of the eligible entity. 

11 ‘‘(2) CONSENT REQUIRED FOR REVOCATION.— 

12 Any transfer under paragraph (1) may be revoked 

13 only with the consent of the Secretary. 

14 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

15 such regulations as may be necessary or appropriate to 

16 carry out this section, including— 

17 ‘‘(1) such regulations as necessary to insure 

18 that any credit described in subsection (g)(1) is 

19 claimed once and not retransferred by a transferee, 

20 and 

21 ‘‘(2) regulations providing for a recapture of 

22 the credit allowed under this section (notwith23 standing any termination date described in sub24 section (i)) in cases where there is a forfeiture under 

25 section 7(b) of the Savings for Working Families 


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1 Act of 2013 in a subsequent taxable year of any 

2 amount which was taken into account in determining 

3 the amount of such credit. 

4 ‘‘(i) APPLICATION OF SECTION.— 

5 ‘‘(1) IN GENERAL.—This section shall apply to 

6 any expenditure made in any taxable year ending 

7 after December 31, 2013, and beginning on or be8 fore January 1, 2021, with respect to any Individual 

9 Development Account which— 

10 ‘‘(A) is opened before January 1, 2019, 

11 and 

12 ‘‘(B) as determined by the Secretary, when 

13 added to all of the previously opened Individual 

14 Development Accounts, does not exceed 

15 2,700,000 Accounts. 

16 Notwithstanding the preceding sentence, this section 

17 shall apply to amounts which are described in sub18 section (c)(1) and which are timely deposited into a 

19 parallel account during the 30-day period following 

20 the end of the last taxable year beginning on or be21 fore January 1, 2019. 

22 ‘‘(2) DETERMINATION OF LIMITATION.—The 

23 limitation on the number of Individual Development 

24 Accounts under paragraph (1)(B) shall be allocated 

25 by the Secretary among eligible individuals as such 


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1 individuals open such Accounts under qualified indi2 vidual development account programs, except that, 

3 in the case of 300,000 Accounts, such limitation 

4 shall be equally allocated among the States.’’. 

5 (b) CREDIT TREATED AS BUSINESS CREDIT.—Sec6 tion 38(b) of such Code (relating to current year business 

7 credit) is amended by striking ‘‘plus’’ at the end of para8 graph (35), by striking the period at the end of paragraph 

9 (36) and inserting ‘‘, plus’’, and by adding at the end the 

10 following new paragraph: 

11 ‘‘(37) the individual development account in12 vestment credit determined under section 45S(a).’’. 

13 (c) CONFORMING AMENDMENT.—The table of sec14 tions for subpart C of part IV of subchapter A of chapter 

15 1 of such Code is amended by adding at the end the fol16 lowing new item: 

‘‘Sec. 45S. Individual development account investment credit.’’. 

17 (d) REPORT REGARDING ACCOUNT MAINTENANCE

18 FEES.—The Secretary of the Treasury shall study the 

19 adequacy of the amount specified in section 45S(c)(2) of 

20 the Internal Revenue Code of 1986 (as added by this sec21 tion). Not later than December 31, 2014, the Secretary 

22 of the Treasury shall report the findings of the study de23 scribed in the preceding sentence to Congress. 


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1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years ending after De3 cember 31, 2013. 

4 SEC. 12. ACCOUNT FUNDS DISREGARDED FOR PURPOSES 

5 OF CERTAIN MEANS-TESTED FEDERAL PRO6 GRAMS. 

7 Notwithstanding any other provision of Federal law 

8 (other than the Internal Revenue Code of 1986) that re9 quires consideration of 1 or more financial circumstances 

10 of an individual, for the purpose of determining eligibility 

11 to receive, or the amount of, any assistance or benefit au12 thorized by such provision to be provided to or for the 

13 benefit of such individual, any amount (including earnings 

14 thereon) in any Individual Development Account of such 

15 individual and any matching deposit made on behalf of 

16 such individual (including earnings thereon) in any par17 allel account shall be disregarded for such purpose with 

18 respect to any period during which such individual main19 tains or makes contributions into such Individual Develop20 ment Account. 

Æ 


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