I
107TH CONGRESS
1ST SESSION
H. R. 2160
To provide for the establishment of individual development accounts.
IN THE HOUSE OF REPRESENTATIVES
JUNE 13, 2001
Mr. PITTS (for himself, Mr. STENHOLM, Mr. WATTS of Oklahoma, Mr. HALL
of Ohio, Mr. ENGLISH, Ms. DELAURO, Mr. SOUDER, Mr. DAVIS of Illi-
nois, Mr. RAMSTAD, Mr. FILNER, Mr. WATKINS of Oklahoma, Ms. NOR-
TON, Mr. BRADY of Texas, Ms. MCCARTHY of Missouri, Mr. SCHAFFER,
Mr. DOYLE, Ms. HART, Mr. ABERCROMBIE, Mr. EHLERS, Mr. GON-
ZALEZ, Mr. UPTON, Mr. CLAY, Mr. MCHUGH, Ms. BALDWIN, Mr. BURR
of North Carolina, Mrs. CLAYTON, Mr. JONES of North Carolina, Ms.
SLAUGHTER, Mr. HAYES, Mr. KILDEE, Mrs. MYRICK, Mr. DELAHUNT,
Mr. CALVERT, Mr. ROSS, Mrs. EMERSON, and Mr. HORN) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To provide for the establishment of individual development
accounts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Savings for Working
Families Act’’.
SEC. 2. 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 United States economic expansion.
SEC. 3. 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
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 7(b), any
amount in the account may be paid out only for
the purpose of paying the qualified expenses 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 4.
(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 4 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 5(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. 4. STRUCTURE AND ADMINISTRATION OF QUALIFIED
INDIVIDUAL DEVELOPMENT ACCOUNT PRO-
GRAMS.
(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 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 cash
in accordance with section 5.
(B) A parallel account to which all match-
ing funds shall be deposited in accordance with
section 6.
(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. 5. 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 6(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. 6. 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 7, 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) UNIFORM ACCOUNTING REGULATIONS.—To en-
sure proper recordkeeping and determination of the tax
credit under section 30B of the Internal Revenue Code
of 1986, the Secretary shall prescribe regulations with re-
spect to accounting for matching funds in the parallel ac-
counts.
(e) REGULAR
REPORTING
OF
ACCOUNTS.—Any
qualified financial institution, qualified nonprofit organi-
zation, or Indian tribe shall report the balances in any
Individual Development Account and parallel account of
an individual on not less than an annual basis to such
individual.
SEC. 7. WITHDRAWAL PROCEDURES.
(a) WITHDRAWALS FOR QUALIFIED EXPENSES.—To
withdraw money from an individual’s Individual Develop-
ment Account to pay qualified expenses of such individual
or such individual’s spouse or dependents, the qualified
financial institution, qualified nonprofit organization, or
Indian tribe shall directly transfer such funds from the
Individual Development Account, and, if applicable, from
the parallel account electronically to the distributees de-
scribed in section 3(8)(A)(ii). If the distributee is not
equipped to receive funds electronically, the qualified fi-
nancial institution, qualified nonprofit organization, or In-
dian tribe may issue such funds by paper check to the
distributee.
(b) 
WITHDRAWALS
FOR
NONQUALIFIED
EX-
PENSES.—An Individual Development Account owner may
unilaterally withdraw any amount of funds from the Indi-
vidual Development Account for purposes other than to
pay qualified expenses, but shall forfeit a proportionate
amount of matching funds from the individual’s parallel
account by doing so, unless such withdrawn funds are re-
contributed to such Account by September 30 following
the withdrawal.
(c) WITHDRAWALS
FROM
ACCOUNTS
OF
NON-
ELIGIBLE INDIVIDUALS.—If the individual for whose ben-
efit an Individual Development Account is established
ceases to be an eligible individual, such account shall re-
main an Individual Development Account, but such indi-
vidual shall not be eligible for any further matching funds
under section 6(b)(1)(A) during the period—
(1) beginning on the first day of the taxable
year of such individual following the beginning of
such ineligibility, and
(2) ending on the last day of the taxable year
of such individual in which such ineligibility ceases.
(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 Act 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 Act re-
lated to withdrawals from Individual Development Ac-
counts.
SEC. 8. CERTIFICATION AND TERMINATION OF QUALIFIED
INDIVIDUAL DEVELOPMENT ACCOUNT PRO-
GRAMS.
(a) CERTIFICATION
PROCEDURES.—Upon estab-
lishing a qualified individual development account pro-
gram under section 4, 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 4(b)(1) are operating pursu-
ant to all the provisions of this Act; 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 Act is not operating a qualified
individual development account program in accordance
with the requirements of this Act (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. 9. 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 4 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 4.
(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. 10. 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
Act, including the reporting, monitoring, and evaluation
required under section 9, to remain available until ex-
pended.
SEC. 11. 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 4 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 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
‘‘(2) the credits allowable under subpart B
(other than this section) and subpart D of this part.
‘‘(c) INDIVIDUAL DEVELOPMENT ACCOUNT INVEST-
MENT.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘individual development account in-
vestment’ means, with respect to an individual devel-
opment account program of a qualified financial in-
stitution in any taxable year, an amount equal to the
sum of—
‘‘(A) the aggregate amount of dollar-for-
dollar matches under such program under sec-
tion 6(b)(1)(A) of the Savings for Working
Families Act for such taxable year, plus
‘‘(B) an amount equal to the sum of—
‘‘(i) with respect to each Individual
Development Account opened during such
taxable year, $100, plus
‘‘(ii) with respect to each Individual
Development Account maintained during
such taxable year, $30.
‘‘(2) INFLATION ADJUSTMENT.—
‘‘(A) IN
GENERAL.—In the case of any
taxable year beginning after 2002, each dollar
amount referred to in paragraph (1)(B) 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) for the
calendar 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 $5, such amount shall be rounded to the
nearest multiple of $5.
‘‘(d) ELIGIBLE ENTITY.—For purposes of this sec-
tion, the term ‘eligible entity’ means a qualified financial
institution, or 1 or more contractual affiliates of such an
institution as defined by the Secretary in regulations.
‘‘(e) OTHER DEFINITIONS.—For purposes of this
section, any term used in this section and also in the Com-
munity Solutions Act shall have the meaning given such
term by such Act.
‘‘(f) DENIAL OF DOUBLE BENEFIT.—No deduction
or credit (other than under this section) shall be allowed
under this chapter with respect to any expense which is
taken into account under subsection (c)(1)(A) in deter-
mining the credit under this section.
‘‘(g) 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 (not-
withstanding any termination date described in subsection
(h)) in cases where there is a forfeiture under section 7(b)
of the Savings for Working Families Act in a subsequent
taxable year of any amount which was taken into account
in determining the amount of such credit.
‘‘(h) APPLICATION OF SECTION.—This section shall
apply to any expenditure made in any taxable year begin-
ning after December 31, 2001, and before January 1,
2009, with respect to any Individual Development Account
opened before January 1, 2007.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart B of part IV of subchapter A of chapter
1 is amended by inserting after the item relating to section
30A the following new item:
‘‘Sec. 30B. Individual development account investment credit for qualified finan-
cial institutions.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
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