PA 08-23—HB 5624

Labor and Public Employees Committee

AN ACT CONCERNING THE CONNECTICUT IDA INITIATIVE

SUMMARY: This act expands the purposes of the Individual Development Account (IDA) program that the Labor Department administers. The IDA program encourages low-income people or qualified people with disabilities to save money for (1) education and job training, (2) buying a home, (3) starting their own business, (4) buying a car to get to work, or (5) making a lease deposit. The act also allows the accounts to be used to save for education or job training for a dependent child of the IDA account holder.

It encourages saving by matching the money that individuals deposit in the account. The maximum match ratio is $2 for every $1 a participant deposits, up to $1,000 per calendar year and $3,000 for the program's duration. Someone is eligible for the program if he or she (1) has earned income and belongs to a household whose adjusted gross income is no more than 80% of the area median income or (2) has no earned income solely because of a qualified disability.

EFFECTIVE DATE: October 1, 2008

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