Services), funds are authorized to provide training
and technical assistance, directly or through grants or
other arrangements, in procedures relating to poten-
tial application and participation in programs iden-
tified in subsection (c)(4) to small nongovernmental
organizations, as determined by the Attorney General,
including religious organizations, in an amount not
to exceed $50 million annually.
‘‘(2) TYPES
OF
ASSISTANCE.—Such assistance
may include—
‘‘(A) assistance and information relative to
creating an organization described in section
501(c)(3) of the Internal Revenue Code of 1986
to operate identified programs;
‘‘(B) granting writing assistance which
may include workshops and reasonable guidance;
‘‘(C) information and referrals to other non-
governmental organizations that provide exper-
tise in accounting, legal issues, tax issues, pro-
gram development, and a variety of other orga-
nizational areas; and
‘‘(D) information and guidance on how to
comply with Federal nondiscrimination provi-
sions including, but not limited to, title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.), title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.), the Fair Housing Act, as
amended (42 U.S.C. 3601 et seq.), title IX of the
Education Amendments of 1972 (20 U.S.C.
1681–1688), section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 694), and the Age Dis-
crimination Act of 1975 (42 U.S.C. 6101–6107).
‘‘(3) RESERVATION OF FUNDS.—An amount of
no less than $5,000,000 shall be reserved under this
section. Small nongovernmental organizations may
apply for these funds to be used for assistance in pro-
viding full and equal integrated access to individuals
with disabilities in programs under this title.
‘‘(4) PRIORITY.—In giving out the assistance de-
scribed in this subsection, priority shall be given to
small nongovernmental organizations serving urban
and rural communities.’’.
TITLE III—INDIVIDUAL
DEVELOPMENT ACCOUNTS
SEC. 301. PURPOSES.
The purposes of this title 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 United States economic expansion.
SEC. 302. DEFINITIONS.
As used in this title:
(1) ELIGIBLE INDIVIDUAL.—
(A) IN GENERAL.—The term ‘‘eligible indi-
vidual’’ means an individual who—
(i) has attained the age of 18 years
but not the age of 61;
(ii) is a citizen or legal resident of the
United States;
(iii) is not a student (as defined in
section 151(c)(4)); and
(iv) is a taxpayer the adjusted gross
income of whom for the preceding taxable
year does not exceed—
(I) $20,000, in the case of a tax-
payer described in section 1(c) or 1(d)
of the Internal Revenue Code of 1986;
(II) $25,000, in the case of a
taxpayer described in section 1(b) of
such Code; and
(III) $40,000, in the case of a
taxpayer described in section 1(a) of
such Code.
(B) INFLATION ADJUSTMENT.—
(i) IN GENERAL.—In the case of any
taxable year beginning after 2002, each
dollar amount referred to in subparagraph
(A)(iv) shall be increased by an amount
equal to—
(I) such dollar amount, multi-
plied by
(II) the cost-of-living adjustment
determined under section (1)(f)(3) of
the Internal Revenue Code of 1986
for the calendar year in which the tax-
able year begins, by substituting
‘‘2001’’ for ‘‘1992’’.
(ii) ROUNDING.—If any amount as
adjusted under clause (i) is not a multiple
of $50, such amount shall be rounded to
the nearest multiple of $50.
(2) INDIVIDUAL
DEVELOPMENT
ACCOUNT.—
The term ‘‘Individual Development Account’’ means
an account established for an eligible individual as
part of a qualified individual development account
program, but only if the written governing instru-
ment creating the account meets the following re-
quirements:
(A) The sole owner of the account is the
individual for whom the account was estab-
lished.
(B) No contribution will be accepted unless
it is in cash.
(C) The holder of the account is a quali-
fied financial institution.
(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 306(b),
any amount in the account may be paid out
only for the purpose of paying the qualified ex-
penses of the account owner.
(3) PARALLEL ACCOUNT.—The term ‘‘parallel
account’’ means a separate, parallel individual or
pooled account for all matching funds and earnings
dedicated to an Individual Development Account
owner as part of a qualified individual development
account program, the sole owner of which is a quali-
fied financial institution, a qualified nonprofit orga-
nization, or an Indian tribe.
(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 contractual affili-
ates, qualified nonprofit organizations, or In-
dian tribes to carry out an individual develop-
ment account program established under sec-
tion 303.
(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 certified by the Community Develop-
ment Financial Institution Fund; or
(C) any credit union chartered under Fed-
eral or State law.
(6) INDIAN TRIBE.—The term ‘‘Indian tribe’’
means any Indian tribe as defined in section 4(12)
of the Native American Housing Assistance and
Self-Determination 
Act 
of 
1996 
(25 
U.S.C.
4103(12), and includes any tribal subsidiary, sub-
division, or other wholly owned tribal entity.
(7) QUALIFIED INDIVIDUAL DEVELOPMENT AC-
COUNT PROGRAM.—The term ‘‘qualified individual
development account program’’ means a program es-
tablished under section 303 under which—
(A) Individual Development Accounts and
parallel accounts are held by a qualified finan-
cial institution; and
(B) additional activities determined by the
Secretary as necessary to responsibly develop
and administer accounts, including recruiting,
providing financial education and other training
to account owners, and regular program moni-
toring, are carried out by the qualified financial
institution, a qualified nonprofit organization,
or an Indian tribe.
(8) QUALIFIED EXPENSE DISTRIBUTION.—
(A) IN GENERAL.—The term ‘‘qualified ex-
pense distribution’’ means any amount paid (in-
cluding through electronic payments) or distrib-
uted 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 the Individual Develop-
ment Account owner or such owner’s
spouse or dependents, as approved by the
qualified financial institution, qualified
nonprofit organization, or Indian tribe;
(ii) is paid by the qualified financial
institution, qualified nonprofit organiza-
tion, or Indian tribe—
(I) except as otherwise provided
in this clause, directly to the unre-
lated third party to whom the amount
is due;
(II) in the case of distributions
for working capital under a qualified
business plan (as defined in subpara-
graph (B)(iv)(IV)), directly to the ac-
count owner;
(III) in the case of any qualified
rollover, directly to another Individual
Development Account and parallel ac-
count; or
(IV) in the case of a qualified
final distribution, directly to the
spouse, dependent, or other named
beneficiary of the deceased account
owner; and
(iii) is paid after the account owner
has completed a financial education course
as required under section 304(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 or expansion costs.
(IV) Qualified rollovers.
(V) Qualified final distribution.
(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
the 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 may not be taken into
account for purposes of determining
qualified higher education expenses
under section 135 or 530 of the Inter-
nal Revenue Code of 1986.
(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 OR EXPANSION COSTS.—
(I) 
IN
GENERAL.—The 
term
‘‘qualified business capitalization or
expansion costs’’ means qualified ex-
penditures for the capitalization or ex-
pansion of a qualified business pursu-
ant to a qualified business plan.
(II) 
QUALIFIED
EXPENDI-
TURES.—The term ‘‘qualified expendi-
tures’’ means expenditures included in
a qualified business plan, including
capital, plant, equipment, working
capital, inventory expenses, attorney
and accounting fees, and other costs
normally associated with starting or
expanding a business.
(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
has been approved by the qualified fi-
nancial institution, qualified nonprofit
organization, or Indian tribe and
which meets such requirements as the
Secretary may specify.
(v) 
QUALIFIED
ROLLOVERS.—The
term ‘‘qualified rollover’’ means the com-
plete distribution of the amounts in an In-
dividual Development Account and parallel
account to another Individual Development
Account and parallel account established in
another 
qualified 
financial 
institution,
qualified nonprofit organization, or Indian
tribe for the benefit of the account owner.
(vi) 
QUALIFIED
FINAL
DISTRIBU-
TION.—The term ‘‘qualified final distribu-
tion’’ means, in the case of a deceased ac-
count owner, the complete distribution of
the amounts in an Individual Development
Account and parallel account directly to
the spouse, any dependent, or other named
beneficiary of the deceased.
(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.
SEC. 303. STRUCTURE AND ADMINISTRATION OF QUALI-
FIED INDIVIDUAL DEVELOPMENT ACCOUNT
PROGRAMS.
(a) ESTABLISHMENT OF QUALIFIED INDIVIDUAL DE-
VELOPMENT ACCOUNT PROGRAMS.—Any qualified finan-
cial institution, qualified nonprofit organization, or Indian
tribe may establish 1 or more qualified individual develop-
ment account programs which meet the requirements of
this title.
(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 cash
in accordance with section 304.
(B) A parallel account to which all match-
ing funds shall be deposited in accordance with
section 305.
(2) TAILORED IDA PROGRAMS.—A qualified fi-
nancial institution, a qualified nonprofit organiza-
tion, or an Indian tribe may tailor its qualified indi-
vidual development account program to allow match-
ing funds to be spent on 1 or more of the categories
of qualified expenses.
(c) TAX TREATMENT OF PARALLEL ACCOUNTS.—
Any account described in subparagraph (B) of subsection
(b)(1) is exempt from taxation under the Internal Revenue
Code of 1986.
SEC. 304. PROCEDURES FOR OPENING AND MAINTAINING
AN INDIVIDUAL DEVELOPMENT ACCOUNT
AND QUALIFYING FOR MATCHING FUNDS.
(a) OPENING AN ACCOUNT.—An eligible individual
may open an Individual Development Account with a
qualified financial institution, a qualified nonprofit organi-
zation, or an Indian tribe upon certification that such indi-
vidual maintains no other Individual Development Ac-
count (other than an Individual Development Account to
be terminated by a qualified rollover).
(b) REQUIRED COMPLETION OF FINANCIAL EDU-
CATION COURSE.—
(1) IN GENERAL.—Before becoming eligible to
withdraw matching funds to pay for qualified ex-
penses, owners of Individual Development Accounts
must complete a financial education course offered
by a qualified financial institution, a qualified non-
profit organization, an Indian tribe, or a government
entity.
(2) 
STANDARD
AND
APPLICABILITY
OF
COURSE.—The Secretary, in consultation with rep-
resentatives of qualified individual development ac-
count programs and financial educators, shall estab-
lish minimum quality standards for the contents of
financial education courses and providers of such
courses offered under paragraph (1) and a protocol
to exempt individuals from the requirement under
paragraph (1) because of hardship or lack of need.
(c) STATUS AS AN ELIGIBLE INDIVIDUAL.—Federal
income tax forms from the preceding taxable year (or in
the absence of such forms, such documentation as speci-
fied by the Secretary proving the eligible individual’s ad-
justed gross income and the status of the individual as
an eligible individual) shall be presented to the qualified
financial institution, qualified nonprofit organization, or
Indian tribe at the time of the establishment of the Indi-
vidual Development Account and in any taxable year in
which contributions are made to the Account to qualify
for matching funds under section 305(b)(1)(A).
(d) DIRECT DEPOSITS.—The Secretary may, under
regulations, provide for the direct deposit of any portion
(not less than $1) of any overpayment of Federal tax of
an individual as a contribution to the Individual Develop-
ment Account of such individual.
SEC. 305. DEPOSITS BY QUALIFIED INDIVIDUAL DEVELOP-
MENT ACCOUNT PROGRAMS.
(a) PARALLEL ACCOUNTS.—The qualified financial
institution, qualified nonprofit organization, or Indian
tribe shall deposit all matching funds for each Individual
Development Account into a parallel account at a qualified