§ 35A-3-312 — Individual development accounts.

(1) As used in this section:

(1)(a) "Individual development account" means a trust account funded through periodic contributions by a recipient and matched by or through a not-for-profit organization organized under Section 501(c)(3), Internal Revenue Code.
(1)(b) "Qualified acquisition costs" means the costs of acquiring, constructing, or reconstructing a residence, including settlement and closing costs.
(1)(c) "Qualified businesses capitalization expenses" means expenditures for capital, plant, equipment, working capital, and inventory.
(2) An individual development account may be established by or on behalf of a recipient to enable the recipient to accumulate funds for the following purposes:

(2)(a) postsecondary educational expenses, including tuition, fees, books, supplies, and transportation costs, if:
(2)(a)(i) the recipient has terminated cash assistance under this chapter; and
(2)(a)(ii) the expenses are paid from the individual development account directly to an educational institution that the recipient is attending as part of an employment plan;
(2)(b) qualified acquisition costs associated with a first-time home purchase if paid from the individual development account directly to a person to whom the amount is due;
(2)(c) amounts paid from an individual development account directly to a business capitalization account that is established in a federally insured financial institution and used solely for qualified business capitalization expenses; or
(2)(d) the purchase of assistive technologies, vehicle modifications, or home improvements to allow a recipient with a disability to participate in work-related activities.
(3) A recipient may only deposit earned income and funds received from a not-for-profit organization into an individual development account.

Legislative History

Amended by Chapter 221, 2015 General Session