The legislation was strongly supported by the Central Vermont Community Action Agency, an ADD site. Non-profit organizations will be program implementors and service providers of the accounts. The service provider must develop a savings plan with each saver who has been determined eligible and enrolled in the program. The approved savings plan must specify a minimum savings amount to be saved and the frequency of deposits to be made by the saver to the savings account during the duration of the plan. Eligible uses for IDAs include education, homeownership or improvement of a home, and participation in the development of an entrepreneurial activity.
Education includes post-secondary education and job training.
A matching dollar ratio is not stipulated. IDA participants will not have to pay state income tax on interest earned in the amount, and the amount saved in an IDA will not count as income for public assistance eligibility. Program participants will establish a savings goal, with the service provider, in an approved plan, and save for one to five years to meet that goal. IDAs will be opened and held in any insured federal or state chartered bank, bank and trust company, savings bank, savings and loan association, trust company, or credit union approved by the service provider. A financial management training program must be offered, or approved, by the service provider and completed by the IDA program participant.