I
106TH CONGRESS
2D SESSION
H. R. 4106
To provide for the establishment of Individual Development Accounts (IDAs)
that will allow individuals and families with limited means an opportunity
to accumulate assets, to access education, to own their own homes
and businesses, and ultimately to achieve economic self-sufficiency, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 28, 2000
Mr. PITTS (for himself, Mr. STENHOLM, Mr. KASICH, Mr. HALL of Ohio, Mr.
SOUDER, Ms. DELAURO, Mr. CAMP, Mr. LARSON, Mrs. MALONEY of New
York, Mr. TANNER, and Mr. BARRETT of Wisconsin) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means
A BILL
To provide for the establishment of Individual Development
Accounts (IDAs) that will allow individuals and families
with limited means an opportunity to accumulate assets,
to access education, to own their own homes and busi-
nesses, and ultimately to achieve economic self-suffi-
ciency, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Savings for Working Families Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
TITLE I—QUALIFIED INDIVIDUAL DEVELOPMENT ACCOUNTS FOR
LOW-INCOME WORKERS
Sec. 101. Structure and administration of qualified individual development ac-
count programs.
Sec. 102. Procedures for opening an Individual Development Account and
qualifying for matching funds.
Sec. 103. Contributions to Individual Development Accounts.
Sec. 104. Deposits by qualified individual development account programs.
Sec. 105. Withdrawal procedures.
Sec. 106. Certification and termination of qualified individual development ac-
count programs.
Sec. 107. Reporting, monitoring, and evaluation.
Sec. 108. Funds in parallel accounts of program participants disregarded for
purposes of certain means-tested Federal programs.
TITLE II—QUALIFIED INDIVIDUAL DEVELOPMENT ACCOUNT
PROGRAM INVESTMENT CREDITS
Sec. 201. Qualified individual development account program investment credits.
Sec. 202. CRA credit treatment for qualified individual development account
program investments.
Sec. 203. Designation of earned income tax credit payments for deposit to Indi-
vidual Development Accounts.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) One-third of all Americans have no assets
available for investment, and another 20 percent
have only negligible assets. The household savings
rate of the United States lags far behind other in-
dustrial nations, presenting a barrier to national
economic growth and preventing many Americans
from entering the economic mainstream by buying a
house, obtaining an adequate education, or starting
a business.
(2) By building assets, Americans can improve
their economic independence and stability, stimulate
the development of human and other capital, and
work toward a viable and hopeful future for them-
selves and their children. Thus, economic well-being
does not come solely from income, spending, and
consumption, but also requires savings, investment,
and accumulation of assets.
(3) Traditional public assistance programs
based on income and consumption have rarely been
successful in promoting and supporting the transi-
tion to increased economic self-sufficiency. Income-
based social policies that meet consumption needs
(including food, child care, rent, clothing, and health
care) should be complemented by asset-based policies
that can provide the means to achieve long-term
independence and economic well-being.
(4) Individual Development Accounts (IDAs)
can provide working Americans with strong incen-
tives to build assets, basic financial management
training, and access to secure and relatively inexpen-
sive banking services.
(5) There is reason to believe that Individual
Development Accounts would also foster greater par-
ticipation in electric fund transfers (EFT), generate
financial returns, including increased income, tax
revenue, and decreased welfare cash assistance, that
will far exceed the cost of public investment in the
program.
SEC. 3. PURPOSES.
The purposes of this Act are to provide for the estab-
lishment of individual development account programs that
will—
(1) provide individuals and families with limited
means an opportunity to accumulate assets and to
enter the financial mainstream;
(2) promote education, homeownership, and the
development of small businesses;
(3) stabilize families and build communities;
and
(4) support continued United States economic
expansion.
SEC. 4. DEFINITIONS.
As used in this Act:
(1) ELIGIBLE INDIVIDUAL.—
(A) IN GENERAL.—The term ‘‘eligible indi-
vidual’’ means an individual who—
(i) has attained the age of 18 years;
(ii) is a citizen or legal resident of the
United States; and
(iii) is a member of a household the
gross income of which does not exceed 80
percent of the area median income (as
published by the Department of Housing
and Urban Affairs).
(B) HOUSEHOLD.—The term ‘‘household’’
means all individuals who share use of a dwell-
ing unit as primary quarters for living and eat-
ing separate from other individuals.
(2) INDIVIDUAL
DEVELOPMENT
ACCOUNT.—
The term ‘‘Individual Development Account’’ means
a regular interest bearing savings account estab-
lished for an eligible individual as part of a qualified
individual development account program, but only if
the written governing instrument creating the ac-
count meets the following requirements:
(A) The sole owner of the account is the
eligible individual.
(B) No contribution will be accepted unless
it is in cash, by check, or by electronic fund
transfer.
(C) The holder of the account is a quali-
fied financial institution or a qualified nonprofit
organization.
(D) The assets of the account will not be
commingled with other property except in a
common trust fund or common investment
fund.
(E) Except as provided in section 105(b),
any amount in the account may be paid out
only for the purpose of paying the qualified ex-
penses of the eligible individual.
(3) PARALLEL ACCOUNT.—The term ‘‘parallel
account’’ means a separate, parallel individual or
pooled account for all matching funds and earnings
dedicated to an eligible individual as part of a quali-
fied individual account program, the sole owner of
which is a qualified financial institution or a quali-
fied nonprofit organization.
(4) QUALIFIED FINANCIAL INSTITUTION.—
(A) IN GENERAL.—The term ‘‘qualified fi-
nancial institution’’ means any person author-
ized to be a trustee of any individual retirement
account under section 408(a)(2).
(B) RULE OF CONSTRUCTION.—Nothing in
this paragraph shall be construed as preventing
a person described in subparagraph (A) from
collaborating with 1 or more qualified nonprofit
organizations to carry out an individual devel-
opment account program established under sec-
tion 101.
(5) QUALIFIED
NONPROFIT
ORGANIZATION.—
The 
term 
‘‘qualified 
nonprofit 
organization’’
means—
(A) any organization described in section
501(c)(3) of the Internal Revenue Code of 1986
and exempt from taxation under section 501(a)
of such Code;
(B) any community development financial
institution as certified by the Community De-
velopment Financial Institution Fund; or
(C) any credit union certified by the Na-
tional Credit Union Administration,
that meets standards for financial management and
fiduciary responsibility as defined by the Secretary
or an organization designated by the Secretary.
(6) QUALIFIED INDIVIDUAL DEVELOPMENT AC-
COUNT PROGRAM.—The term ‘‘qualified individual
development program’’ means a program established
under section 101 under which—
(A) individual development accounts and
parallel accounts are held by a qualified finan-
cial institution or a qualified nonprofit organi-
zation; and
(B) additional activities determined by the
Secretary, or an organization designated by the
Secretary, as necessary to responsibly develop
and administer accounts, including recruiting,
providing financial education and other training
to account holders, and regular program moni-
toring, are carried out by such institution or
nonprofit organization.
(7) QUALIFIED EXPENSE DISTRIBUTION.—
(A) IN GENERAL.—The term ‘‘qualified ex-
pense distribution’’ means any amount paid or
distributed out of an Individual Development
Account and a parallel account established for
an eligible individual if such amount—
(i) is used exclusively to pay the quali-
fied expenses of such individual or such in-
dividual’s spouse or dependents,
(ii) is paid by the qualified financial
institution or qualified nonprofit organiza-
tion directly to the person to whom the
amount is due or to another Individual De-
velopment Account, and
(iii) is paid after the holder of the In-
dividual Development Account has com-
pleted a financial education course as re-
quired under section 102(b).
(B) QUALIFIED EXPENSES.—
(i) IN GENERAL.—The term ‘‘qualified
expenses’’ means any of the following:
(I) Qualified higher education ex-
penses.
(II) Qualified first-time home-
buyer costs.
(III) Qualified business capital-
ization costs.
(IV) Qualified rollovers.
(ii) QUALIFIED
HIGHER
EDUCATION
EXPENSES.—
(I) 
IN
GENERAL.—The 
term
‘‘qualified higher education expenses’’
has the meaning given such term by
section 72(t)(7) of the Internal Rev-
enue Code of 1986, determined by
treating postsecondary vocational edu-
cational schools as eligible educational
institutions.
(II) 
POSTSECONDARY
VOCA-
TIONAL
EDUCATION
SCHOOL.—The
term ‘‘postsecondary vocational edu-
cational school’’ means an area voca-
tional education school (as defined in
subparagraph (C) or (D) of section
521(4) of the Carl D. Perkins Voca-
tional and Applied Technology Edu-
cation Act (20 U.S.C. 2471(4)))
which is in any State (as defined in
section 521(33) of such Act), as such
sections are in effect on the date of
enactment of this Act.
(III) 
COORDINATION
WITH
OTHER
BENEFITS.—The amount of
qualified higher education expenses
for any taxable year shall be reduced
as provided in section 25A(g)(2) of
such Code and by the amount of such
expenses for which a credit or exclu-
sion is allowed under chapter 1 of
such Code for such taxable year.
(iii) QUALIFIED
FIRST-TIME
HOME-
BUYER COSTS.—The term ‘‘qualified first-
time homebuyer costs’’ means qualified ac-
quisition costs (as defined in section
72(t)(8) of such Code without regard to
subparagraph (B) thereof) with respect to
a principal residence (within the meaning
of section 121 of such Code) for a qualified
first-time homebuyer (as defined in section
72(t)(8) of such Code).
(iv) QUALIFIED
BUSINESS
CAPITAL-
IZATION COSTS.—
(I) 
IN
GENERAL.—The 
term
‘‘qualified 
business 
capitalization
costs’’ means qualified expenditures
for the capitalization of a qualified
business pursuant to a qualified busi-
ness plan.
(II) 
QUALIFIED
EXPENDI-
TURES.—The term ‘‘qualified expendi-
tures’’ means expenditures included in
a qualified business plan, including
capital, plant, equipment, working
capital and inventory expenses.
(III) 
QUALIFIED
BUSINESS.—
The term ‘‘qualified business’’ means
any business that does not contravene
any law.
(IV) 
QUALIFIED
BUSINESS
PLAN.—The term ‘‘qualified business
plan’’ means a business plan which
meets such requirements as the Sec-
retary or an organization designated
by the Secretary may specify.
(v) 
QUALIFIED
ROLLOVERS.—The
term ‘‘qualified rollover’’ means, with re-
spect to any distribution from an Indi-
vidual Development Account, the payment,
within 120 days of such distribution, of all
or a portion of such distribution to such
account or to another Individual Develop-
ment Account established in another quali-
fied financial institution or qualified non-
profit organization for the benefit of the el-
igible individual. Rules similar to the rules
of section 408(d)(3) of such Code (other
than subparagraph (C) thereof) shall apply
for purposes of this clause.
(8) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.
TITLE I—INDIVIDUAL DEVELOP-
MENT ACCOUNTS FOR LOW-
INCOME WORKERS
SEC. 101. STRUCTURE AND ADMINISTRATION OF QUALI-
FIED INDIVIDUAL DEVELOPMENT ACCOUNT
PROGRAMS.
(a) ESTABLISHMENT OF QUALIFIED INDIVIDUAL DE-
VELOPMENT ACCOUNT PROGRAMS.—Any qualified finan-
cial institution or qualified nonprofit organization may es-
tablish 1 or more qualified individual development account
programs which meet the requirements of this Act.
(b) BASIC PROGRAM STRUCTURE.—
(1) IN GENERAL.—All qualified individual de-
velopment account programs shall consist of the fol-
lowing 2 components:
(A) An Individual Development Account to
which an eligible individual may contribute
money in accordance with section 103.
(B) A parallel account to which all match-
ing funds shall be deposited in accordance with
section 104.
(2) TAILORED IDA PROGRAMS.—A qualified fi-
nancial institution or qualified nonprofit organiza-
tion may tailor its qualified individual development
account program to allow matching funds to be
spent on 1 or more of the categories of qualified ex-
penses.
(c) ACCOUNT POPULATION DISTRIBUTION REQUIRE-
MENT.—An individual development account program shall
be treated as qualified under this Act only if not less than
one third of the Individual Development Accounts under
such program are owned by eligible individuals each of
whom is a member of a household the gross income of
which does not exceed 50 percent of the area median in-
come (as published by the Department of Housing and
Urban Affairs).
(d) TAX TREATMENT OF ACCOUNTS.—Any account
described in subparagraph (B) of subsection (b)(1) is ex-
empt from taxation under the Internal Revenue Code of
1986 unless such account has ceased to be such an ac-
count by reason of section 105(c) or the termination of
the qualified individual development account program
under section 106(b).
SEC. 102. PROCEDURES FOR OPENING AN INDIVIDUAL DE-
VELOPMENT ACCOUNT AND QUALIFYING FOR
MATCHING FUNDS.
(a) OPENING AN ACCOUNT.—An eligible individual
must open an Individual Development Account with a
qualified financial institution or qualified nonprofit orga-
nization and contribute money in accordance with section
103 to qualify for matching funds in a parallel account.
(b) REQUIRED COMPLETION OF FINANCIAL EDU-
CATION COURSE.—
(1) IN GENERAL.—Before becoming eligible to
withdraw matching funds to pay for qualified ex-
penses, holders of Individual Development Accounts
must complete a financial education course offered
by a qualified financial institution, a qualified non-
profit organization, or a government entity.
(2) 
STANDARD
AND
APPLICABILITY
OF
COURSE.—The Secretary or an organization des-
ignated by the Secretary, in consultation with rep-
resentatives of qualified individual development ac-
count programs and financial educators, shall estab-
lish minimum performance standards for financial
education courses offered under paragraph (1) and
a protocol to exempt eligible individuals from the re-
quirement under paragraph (1) because of hardship
or lack of need.
SEC. 103. CONTRIBUTIONS TO INDIVIDUAL DEVELOPMENT
ACCOUNTS.
(a) IN GENERAL.—Except in the case of a qualified
rollover, individual contributions to an Individual Develop-
ment Account will not be accepted for the taxable year
in excess of the lesser of—
(1) $2,000; or
(2) an amount equal to the compensation (as
defined in section 219(f)(1) of the Internal Revenue
Code of 1986) includible in the individual’s gross in-
come for such taxable year.
(b) PROOF OF COMPENSATION AND STATUS AS AN
ELIGIBLE INDIVIDUAL.—Federal W–2 forms and other
forms specified by the Secretary proving the eligible indi-
vidual’s wages and other compensation and the status of
the individual as an eligible individual shall be presented
at the time of the establishment of the Individual Develop-
ment Account and at least once annually thereafter.
(c) TIME WHEN CONTRIBUTIONS DEEMED MADE.—
For purposes of this section, a taxpayer shall be deemed
to have made a contribution to an Individual Development
Account on the last day of the preceding taxable year if
the contribution is made on account of such taxable year
and is made not later than the time prescribed by law for
filing the Federal income tax return for such taxable year
(not including extensions thereof).
(d) CROSS REFERENCE.—
For designation of earned income tax credit pay-
ments for deposit to an Individual Development Ac-
count, see section 32(o) of the Internal Revenue
Code of 1986.
SEC. 104. DEPOSITS BY QUALIFIED INDIVIDUAL DEVELOP-
MENT ACCOUNT PROGRAMS.
(a) PARALLEL ACCOUNTS.—The qualified financial
institution or qualified nonprofit organization shall deposit
all matching funds for each Individual Development Ac-
count into a parallel account at a qualified financial insti-
tution or qualified nonprofit organization. The parallel ac-
count or accounts shall earn not less than the market rate
of interest.
(b) REGULAR DEPOSITS OF MATCHING FUNDS.—
(1) IN GENERAL.—Subject to paragraph (2),
the qualified financial institution or qualified non-
profit organization shall deposit not less than quar-
terly into the parallel account with respect to each
eligible individual the following:
(A) A dollar-for-dollar match for the first
$500 contributed by the eligible individual into
an Individual Development Account with re-
spect to any taxable year.
(B) Any matching funds provided by State,
local, or private sources in accordance to the
matching ratio set by those sources.
(2) CROSS REFERENCE.—
For allowance of tax credit to qualified financial
institutions for Individual Development Account
subsidies, including matching funds, see section 30B
of the Internal Revenue Code of 1986.
(c) FORFEITURE OF MATCHING FUNDS.—Matching
funds that are forfeited under section 105(b) shall be used
by the qualified financial institution or qualified nonprofit
organization to pay matches for other Individual Develop-
ment Account contributions by eligible individuals.
(d) UNIFORM
ACCOUNTING
REGULATIONS.—The
Secretary shall prescribe regulations with respect to ac-
counting for matching funds from all possible sources in
the parallel accounts.
(e) REGULAR
REPORTING
OF
ACCOUNTS.—Any
qualified financial institution or qualified nonprofit orga-
nization shall report the balances in any Individual Devel-
opment Account and parallel account of an eligible indi-
vidual on not less than a quarterly basis.
SEC. 105. WITHDRAWAL PROCEDURES.
(a) WITHDRAWALS FOR QUALIFIED EXPENSES.—To
withdraw money from an eligible individual’s Individual
Development Account to pay qualified expenses of such
individual or such individual’s spouse or dependents, the
qualified financial institution or qualified nonprofit orga-
nization shall directly transfer such funds from the Indi-
vidual Development Account, and, if applicable, from the
parallel account electronically to the vendor or other Indi-
vidual Development Account. If the vendor is not equipped
to receive funds electronically, the qualified financial insti-
tution or qualified nonprofit organization may issue such
funds by paper check to the vendor.
(b) 
WITHDRAWALS
FOR
NONQUALIFIED
EX-
PENSES.—An Individual Development Account holder may
unilaterally withdraw funds from the Individual Develop-
ment Account for purposes other than to pay qualified ex-
penses, but shall forfeit the corresponding matching funds
and interest earned on the matching funds by doing so,
unless such withdrawn funds are recontributed to such Ac-
count within 1 year of withdrawal.
(c) DEEMED WITHDRAWALS FROM ACCOUNTS OF
NONELIGIBLE INDIVIDUALS.—If the individual for whose
benefit an Individual Development Account is established
ceases to be an eligible individual, such account shall cease
to be an Individual Development Account as of the first
day of the taxable year of such individual and any balance
in such account shall be deemed to have been withdrawn
on such first day by such individual for purposes other
than to pay qualified expenses.
(d) TAX TREATMENT OF MATCHING FUNDS.—Any
amount withdrawn from a parallel account shall not be
includible in an eligible individual’s gross income.
SEC. 106. CERTIFICATION AND TERMINATION OF QUALI-
FIED INDIVIDUAL DEVELOPMENT ACCOUNT
PROGRAMS.
(a) CERTIFICATION
PROCEDURES.—Upon estab-
lishing a qualified individual development account pro-
gram under section 101, a qualified financial institution
or qualified nonprofit organization shall certify to the Sec-
retary, or an organization designated by the Secretary, on
forms prescribed by the Secretary or such organization
and accompanied by any documentation required by the
Secretary or such organization, that—
(1) the accounts described in subparagraphs
(A) and (B) of section 101(b)(1) are operating pur-
suant to all the provisions of this Act; and
(2) the qualified financial institution or quali-
fied nonprofit organization agrees to implement an
information system necessary to monitor the cost
and outcomes of the qualified individual development
account program.
(b) AUTHORITY TO TERMINATE QUALIFIED IDA
PROGRAM.—If the Secretary, or an organization des-
ignated by the Secretary, determines that a qualified fi-
nancial institution or qualified nonprofit organization
under this Act is not operating a qualified individual devel-
opment account program in accordance with the require-
ments of this Act (and has not implemented any corrective
recommendations directed by the Secretary or such orga-
nization), the Secretary or such organization shall termi-
nate such institution’s or nonprofit organization’s author-
ity to conduct the program. If the Secretary, or an organi-
zation designated by the Secretary, is unable to identify
a qualified financial institution or qualified nonprofit orga-
nization to assume the authority to conduct such program,
then any account established for the benefit of any eligible
individual under such program shall cease to be an Indi-
vidual Development Account as of the first day of such
termination and any balance in such account shall be
deemed to have been withdrawn on such first day by such
individual for purposes other than to pay qualified ex-
penses.
SEC. 107. REPORTING, MONITORING, AND EVALUATION.
(a) RESPONSIBILITIES OF QUALIFIED FINANCIAL IN-
STITUTIONS
AND
QUALIFIED
NONPROFIT
ORGANIZA-
TIONS.—Each qualified financial institution or qualified
nonprofit organization that establishes a qualified indi-
vidual development account program under section 101
shall report annually to the Secretary, directly or through
an organization designated by the Secretary, within 90
days after the end of each calendar year on—
(1) the number of eligible individuals making
contributions into Individual Development Accounts;
(2) the amounts contributed into Individual De-
velopment Accounts and deposited into parallel ac-
counts for matching funds;
(3) the amounts withdrawn from Individual De-
velopment Accounts and parallel accounts, and the
purposes for which such amounts were withdrawn;
(4) the balances remaining in Individual Devel-
opment Accounts and parallel accounts; and
(5) such other information needed to help the
Secretary, or an organization designated by the Sec-
retary, monitor the cost and outcomes of the quali-
fied individual development account program.
(b) RESPONSIBILITIES OF THE SECRETARY OR DES-
IGNATED ORGANIZATION.—
(1) MONITORING
PROTOCOL.—Not later than
12 months after the date of enactment of this Act,
the Secretary, or an organization designated by the
Secretary, shall develop and implement a protocol
and process to continually monitor the cost and out-
comes of the qualified individual development ac-
count programs established under section 101.
(2) ANNUAL REPORTS.—In each year after the
date of enactment of this Act, the Secretary, or an
organization designated by the Secretary, shall issue
a progress report on the status of such qualified in-
dividual development account programs.
(3) APPROPRIATIONS FOR MONITORING.—There
is authorized to be appropriated $5,000,000 for the
purposes of monitoring qualified individual develop-
ment account programs established under section
101, to remain available until expended.
SEC. 108. FUNDS IN PARALLEL ACCOUNTS OF PROGRAM
PARTICIPANTS 
DISREGARDED 
FOR 
PUR-
POSES OF CERTAIN MEANS-TESTED FEDERAL
PROGRAMS.
Notwithstanding any provision of the Internal Rev-
enue Code of 1986 or the Social Security Act that requires
consideration of 1 or more financial circumstances of an
individual, for the purposes of determining eligibility to
receive, or the amount of, any assistance or benefit author-
ized by such provision to be provided to or for the benefit
of such individual, the lesser of—
(1) the sum of all contributions by an eligible
individual (including earnings thereon) to any Indi-
vidual Development Account and matching deposits
made on behalf of such individual (including earn-
ings thereon) in any parallel account; or
(2) $10,000,
shall be disregarded for such purpose with respect to any
period during which the individual participates in a quali-
fied individual development account program established
under section 101.
TITLE 
II—QUALIFIED 
INDI-
VIDUAL DEVELOPMENT AC-
COUNT 
PROGRAM 
INVEST-
MENT CREDITS
SEC. 201. QUALIFIED INDIVIDUAL DEVELOPMENT AC-
COUNT PROGRAM INVESTMENT CREDITS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to other credits) is amended by inserting
after section 30A the following:
‘‘SEC. 30B. QUALIFIED INDIVIDUAL DEVELOPMENT AC-
COUNT PROGRAM INVESTMENT CREDIT.
‘‘(a) DETERMINATION OF AMOUNT.—There shall be
allowed as a credit against the applicable tax for the tax-
able year an amount equal to the qualified individual de-
velopment account program investment provided by an eli-
gible taxpayer during the taxable year under a qualified
individual development account program established under
section 101 of the Savings for Working Families Act.
‘‘(b) APPLICABLE TAX.—For the purposes of this
section, the term ‘applicable tax’ means the excess (if any)
of—
‘‘(1) the sum of—
‘‘(A) the tax imposed under this chapter
(other than the taxes imposed under the provi-
sions described in subparagraphs (C) through
(Q) of section 26(b)(1)), plus
‘‘(B) the tax imposed under section 3111,
over
‘‘(2) the credits allowable under subparts B and
D of this part.
‘‘(c) QUALIFIED INDIVIDUAL DEVELOPMENT AC-
COUNT PROGRAM INVESTMENT.—For purposes of this
section, the term ‘qualified individual development account
program investment’ means, with respect to a qualified in-
dividual development account program of an eligible tax-
payer in any taxable year, an amount equal to—
‘‘(1) in the case of an eligible taxpayer which is
a qualified financial institution, the sum of—
‘‘(A) the lesser of—
‘‘(i) 90 percent of the aggregate
amount of dollar-for-dollar matches under
such program by such taxpayer under sec-
tion 104 of the Savings for Working Fami-
lies Act for such taxable year, or
‘‘(ii) $90,000,000, plus
‘‘(B) the lesser of—
‘‘(i) 50 percent of the aggregate costs
paid or incurred under such program by
the eligible taxpayer during such taxable
year—
‘‘(I) to provide financial edu-
cation courses to Individual Develop-
ment Account holders under section
102(b) of such Act, and
‘‘(II) to underwrite program ac-
tivities described in section 4(6)(B) of
such Act), or
‘‘(ii) $5,000,000, and
‘‘(2) in the case of an eligible taxpayer which is
not a qualified financial institution, the lesser of—
‘‘(A) the sum of—
‘‘(i) 50 percent of the aggregate
amount of such dollar-for-dollar matches
by such taxpayer for such taxable year,
plus
‘‘(ii) 50 percent of the aggregate costs
described in paragraph (1)(B)(i) paid or
incurred under such program by the eligi-
ble taxpayer during such taxable year, or
‘‘(B) $5,000,000.
‘‘(d) ELIGIBLE TAXPAYER.—For purposes of this
section, a taxpayer shall be considered an eligible taxpayer
if at least 70 percent of the expenditures by such taxpayer
with respect to any qualified individual development ac-
count program for any taxable year are described in sub-
section (c)(1)(A).
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.—
‘‘(1) OTHER
DEFINITIONS.—For purposes of
this section, the terms ‘Individual Development Ac-
count’ , ‘qualified individual development account
program’, and ‘qualified financial institution’ have
the meanings given such terms by section 4 of the
Savings for Workings Families Act.
‘‘(2) CERTAIN
RULES
MADE
APPLICABLE.—
Rules similar to the rules of paragraphs (1) and (2)
of section 41(f) shall apply for purposes of this sec-
tion.
‘‘(f) REGULATIONS.—The Secretary may prescribe
such regulations as may be necessary or appropriate to
carry out this section, including regulations providing for
a recapture of the credit allowed under this section in
cases where there is a forfeiture under section 105(b) of
the Savings for Workings Families Act in a subsequent
taxable year of any amount which was taken into account
in determining the amount of such credit.
‘‘(g) TERMINATION.—This section shall not apply to
any taxable year beginning after December 31, 2005.’’.
(b) TRANSFER TO TRUST FUNDS.—The Secretary of
the Treasury shall transfer from the general fund of the
United States Treasury to the Federal Old-Age and Sur-
vivors Insurance Trust Fund, the Federal Disability In-
surance Trust Fund, and the Federal Hospital Insurance
Trust Fund amounts equivalent to the amount of the re-
duction in taxes imposed by section 3111 of the Internal
Revenue Code of 1986 by reason of the credit determined
under section 30B (relating to the qualified individual de-
velopment account program investment credit). Any such
transfer shall be made at the same time that the reduced
taxes would have been deposited in such Trust Funds.
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart B of part IV of subchapter A of chapter
1 of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to section 30A the fol-
lowing:
‘‘Sec. 30B. Qualified individual development account program investment
credit.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 202. CRA CREDIT TREATMENT FOR QUALIFIED INDI-
VIDUAL DEVELOPMENT ACCOUNT PROGRAM
INVESTMENTS.
Qualified financial institutions which establish quali-
fied individual development account programs under sec-
tion 101 shall not receive credit for funding, administra-
tion, and education expenses under any test contained in
regulations for the Community Reinvestment Act of 1977
for those activities and expenses related to such programs
and taken into account for purposes of the tax credit al-
lowed under section 30B of the Internal Revenue Code of
1986.
SEC. 203. DESIGNATION OF EARNED INCOME TAX CREDIT
PAYMENTS FOR DEPOSIT TO INDIVIDUAL DE-
VELOPMENT ACCOUNTS.
(a) IN GENERAL.—Section 32 of the Internal Rev-
enue Code of 1986 (relating to earned income credit) is
amended by adding at the end the following:
‘‘(o) DESIGNATION OF CREDIT FOR DEPOSIT TO IN-
DIVIDUAL DEVELOPMENT ACCOUNT.—
‘‘(1) IN GENERAL.—With respect to the return
of any eligible individual (as defined in section 4(1)
of the Savings for Working Families Act) for the
taxable year of the tax imposed by this chapter, such
individual may designate that a specified portion
(not less than $1) of any overpayment of tax for
such taxable year which is attributable to the credit
allowed under this section shall be deposited by the
Secretary into an Individual Development Account
(as defined in section 4(2) of such Act) of such indi-
vidual. The Secretary shall so deposit such portion
designated under this paragraph.
‘‘(2) MANNER AND TIME OF DESIGNATION.—A
designation under paragraph (1) may be made with
respect to any taxable year—
‘‘(A) at the time of filing the return of the
tax imposed by this chapter for such taxable
year, or
‘‘(B) at any other time (after the time of
filing the return of the tax imposed by this
chapter for such taxable year) specified in regu-
lations prescribed by the Secretary.
Such designation shall be made in such manner as
the Secretary prescribes by regulations.
‘‘(3) PORTION ATTRIBUTABLE TO EARNED IN-
COME TAX CREDIT.—For purposes of paragraph (1),
an overpayment for any taxable year shall be treated
as attributable to the credit allowed under this sec-
tion for such taxable year to the extent that such
overpayment does not exceed the credit so allowed.
‘‘(4) 
OVERPAYMENTS
TREATED
AS
RE-
FUNDED.—For purposes of this title, any portion of
an overpayment of tax designated under paragraph
(1) shall be treated as being refunded to the tax-
payer as of the last date prescribed for filing the re-
turn of tax imposed by this chapter (determined
without regard to extensions) or, if later, the date
the return is filed.
‘‘(5) TERMINATION.—This subsection shall not
apply to any taxable year beginning after December
31, 2005.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2000.
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