Illinois General Assembly - Illinois Compiled Statutes

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305 ILCS 5/12-4.103

(305 ILCS 5/12-4.103)

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.)