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
financial institution, a qualified nonprofit organization, or
an Indian tribe.
(b) REGULAR DEPOSITS OF MATCHING FUNDS.—
(1) IN GENERAL.—Subject to paragraph (2),
the qualified financial institution, qualified nonprofit
organization, or Indian tribe shall not less than
quarterly (or upon a proper withdrawal request
under section 306, if necessary) deposit into the par-
allel 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) INFLATION ADJUSTMENT.—
(A) IN GENERAL.—In the case of any tax-
able year beginning after 2002, the dollar
amount referred to in paragraph (1)(A) shall be
increased by an amount equal to—
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment de-
termined under section (1)(f)(3) of the In-
ternal Revenue Code of 1986 for the cal-
endar year in which the taxable year be-
gins, by substituting ‘‘2001’’ for ‘‘1992’’.
(B) ROUNDING.—If any amount as ad-
justed under subparagraph (A) is not a multiple
of $20, such amount shall be rounded to the
nearest multiple of $20.
(3) CROSS REFERENCE.—
For allowance of tax credit for Individual Devel-
opment 
Account 
subsidies, 
including 
matching
funds, see section 30B of the Internal Revenue Code
of 1986.
(c) DEPOSIT
OF MATCHING FUNDS INTO INDI-
VIDUAL DEVELOPMENT ACCOUNT OF INDIVIDUAL WHO
HAS ATTAINED AGE 61.—In the case of an Individual De-
velopment Account owner who attains the age of 61, the
qualified financial institution, qualified nonprofit organi-
zation, or Indian tribe which holds the parallel account
for such individual shall deposit the funds in such parallel
account into the Individual Development Account of such
individual on the first day of the succeeding taxable year
of such individual.
(d) TAX TREATMENT OF MATCHING FUNDS.—Any
amount withdrawn from a parallel account shall not be
includible in an eligible individual’s gross income.
(e) WITHDRAWAL LIABILITY RESTS ONLY WITH EL-
IGIBLE INDIVIDUALS.—Nothing in this title may be con-
strued to impose liability on a qualified financial institu-
tion, a qualified nonprofit organization, or an Indian tribe
for non-compliance with the requirements of this title re-
lated to withdrawals from Individual Development Ac-
counts.
SEC. 307. 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 303, a qualified financial institution,
a qualified nonprofit organization, or an Indian tribe shall
certify to the Secretary on forms prescribed by the Sec-
retary and accompanied by any documentation required
by the Secretary, that—
(1) the accounts described in subparagraphs
(A) and (B) of section 303(b)(1) are operating pur-
suant to all the provisions of this title; and
(2) the qualified financial institution, qualified
nonprofit organization, or Indian tribe agrees to im-
plement an information system necessary to monitor
the cost and outcomes of the qualified individual de-
velopment account program.
(b) AUTHORITY TO TERMINATE QUALIFIED IDA
PROGRAM.—If the Secretary determines that a qualified
financial institution, a qualified nonprofit organization, or
an Indian tribe under this title is not operating a qualified
individual development account program in accordance
with the requirements of this title (and has not imple-
mented any corrective recommendations directed by the
Secretary), the Secretary shall terminate such institu-
tion’s, nonprofit organization’s, or Indian tribe’s authority
to conduct the program. If the Secretary is unable to iden-
tify a qualified financial institution, a qualified nonprofit
organization, or an Indian tribe to assume the authority
to conduct such program, then any funds in a parallel ac-
count established for the benefit of any individual under
such program shall be deposited into the Individual Devel-
opment Account of such individual as of the first day of
such termination.
SEC. 308. REPORTING, MONITORING, AND EVALUATION.
(a) RESPONSIBILITIES OF QUALIFIED FINANCIAL IN-
STITUTIONS, QUALIFIED NONPROFIT ORGANIZATIONS,
AND INDIAN TRIBES.—Each qualified financial institu-
tion, qualified nonprofit organization, or Indian tribe that
operates a qualified individual development account pro-
gram under section 303 shall report annually to the Sec-
retary 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 monitor the cost and outcomes of the
qualified individual development account program
(provided in a non-individually-identifiable manner).
(b) RESPONSIBILITIES OF THE SECRETARY.—
(1) MONITORING
PROTOCOL.—Not later than
12 months after the date of the enactment of this
Act, the Secretary shall develop and implement a
protocol and process to monitor the cost and out-
comes of the qualified individual development ac-
count programs established under section 303.
(2) ANNUAL REPORTS.—In each year after the
date of the enactment of this Act, the Secretary
shall submit a progress report to Congress on the
status of such qualified individual development ac-
count programs. Such report shall include from a
representative sample of qualified individual develop-
ment account programs information on—
(A) the characteristics of participants, in-
cluding age, gender, race or ethnicity, marital
status, number of children, employment status,
and monthly income;
(B) deposits, withdrawals, balances, uses
of Individual Development Accounts, and par-
ticipant characteristics;
(C) the characteristics of qualified indi-
vidual development account programs, including
match rate, economic education requirements,
permissible uses of accounts, staffing of pro-
grams in full time employees, and the total
costs of programs; and
(D) information on program implementa-
tion and administration, especially on problems
encountered and how problems were solved.
SEC. 309. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Sec-
retary $1,000,000 for fiscal year 2002 and for each fiscal
year through 2008, for the purposes of implementing this
title, including the reporting, monitoring, and evaluation
required under section 308, to remain available until ex-
pended.
SEC. 310. ACCOUNT FUNDS DISREGARDED FOR PURPOSES
OF CERTAIN MEANS-TESTED FEDERAL PRO-
GRAMS.
Notwithstanding any other provision of Federal law
that requires consideration of 1 or more financial cir-
cumstances of an individual, for the purposes of deter-
mining eligibility to receive, or the amount of, any assist-
ance or benefit authorized by such provision to be provided
to or for the benefit of such individual, an amount equal
to the sum of—
(1) all amounts (including earnings thereon) in
any Individual Development Account; plus
(2) the matching deposits made on behalf of
such individual (including earnings thereon) in any
parallel account,
shall be disregarded for such purposes.
SEC. 311. MATCHING FUNDS FOR INDIVIDUAL DEVELOP-
MENT ACCOUNTS PROVIDED THROUGH A TAX
CREDIT FOR QUALIFIED FINANCIAL INSTITU-
TIONS.
(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 new section:
‘‘SEC. 30B. INDIVIDUAL DEVELOPMENT ACCOUNT INVEST-
MENT CREDIT FOR QUALIFIED FINANCIAL IN-
STITUTIONS.
‘‘(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 individual development
account investment provided by an eligible entity during
the taxable year under an individual development account
program established under section 303 of the Community
Solutions Act of 2001.
‘‘(b) APPLICABLE TAX.—For the purposes of this
section, the term ‘applicable tax’ means the excess (if any)
of—
‘‘(1) the tax imposed under this chapter (other
than the taxes imposed under the provisions de-
scribed in subparagraphs (C) through (Q) of section
26(b)(2)), over