305 ILCS 5/12-4.103
2021 Illinois Compiled Statutes|Chapter 305 - PUBLIC AID|305 ILCS 5/ - Illinois Public Aid Code.|Article XII - Administration

Sec. 12-4.103.     Individual Development Accounts.     Subject to funding availability, the Illinois Department shall  establish a program that allows eligible low-income  individuals to open and maintain Individual Development Accounts for the  purpose of enabling the individual to accumulate funds for a qualified purpose.  A qualified purpose for establishing an Individual Development Account shall  be one or more of the following:(1) to pay for postsecondary education expenses if the expenses are paid  directly to an eligible educational institution;(2) to acquire a principal residence if the individual is buying a home for  the first time and if the funds are paid directly to the person to whom the  amounts required for the purchase are due; or(3) to finance business capitalization expenses if the funds are paid  directly into a business capitalization account at a federally insured  financial institution and are restricted to use solely for qualified business  capitalization expenses.An individual may make contributions to his or her  Individual Development Account only from earned income as  defined in Section 911(d)(2) of the Internal Revenue Code of 1986.An Individual Development Account program shall be established in  accordance with subsection (h) of Section 404 of the Personal Responsibility  and Work Opportunity Reconciliation Act of 1996.  State funds made available  for this program and federal funds, to the extent they may be used for this  purpose, shall be used (i) to match, dollar for dollar, contributions made by  individuals participating in an Individual Development Account program approved  by the Illinois Department, (ii) to fund or supplement other funds available  for the costs of the administration of an Individual Development Account  program by a not-for-profit organization, and (iii) for a grant or grants to  not-for-profit organizations to provide technical assistance and training to  other not-for-profit organizations in the State that wish to establish an  Individual Development Account program consistent with this Section.  No  Individual Development Account program shall qualify for State funds under this  Section unless the administering not-for-profit organization verifies that it  has secured at least a dollar for dollar match from  other sources for contributions made by participating individuals.The Illinois Department shall by rule establish qualifications for a  not-for-profit organization to administer an Individual Development Account  program.  The Illinois Department shall establish eligibility criteria for individuals  seeking to participate in an Individual Development Account program.  The  Illinois Department shall promulgate rules regarding the administration of  Individual Development Account programs by approved not-for-profit  organizations administering the programs.Notwithstanding any other provision of State law, funds in an Individual  Development Account, including accrued interest and matching deposits, shall be  disregarded for the purpose of determining the eligibility and benefit levels  under this Code of the individual establishing the Individual Development  Account with respect to any period during which such individual maintains or  makes contributions into such an account.  Nothing in this Section shall prohibit a not-for-profit organization which does  not  receive State matching funds from administering an approved Individual  Development Account under this Section.    (Source: P.A. 90-783, eff. 8-14-98.)