S.863 - Assets for Independence Demonstration Act103rd Congress (1993-1994)
|Sponsor:||Sen. Bradley, Bill [D-NJ] (Introduced 04/30/1993)|
|Committees:||Senate - Finance|
|Latest Action:||04/30/1993 Read twice and referred to the Committee on Finance. (All Actions)|
This bill has the status Introduced
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Summary: S.863 — 103rd Congress (1993-1994)All Bill Information (Except Text)
Introduced in Senate (04/30/1993)
Assets for Independence Demonstration Act - Provides for the establishment of demonstration projects designed to determine: (1) the social, psychological, and economic effects of providing to individuals with limited means an opportunity to accumulate assets; and (2) the extent to which an asset-based welfare policy may be used to enable individuals with low income to achieve economic self-sufficiency.
Makes an individual eligible for assistance under a demonstration project if such individual is a member of a household that meets: (1) the income test of not more than 200 percent of the poverty threshold; and (2) the net worth test of not more than $20,000.
Amends the Internal Revenue Code to allow a deduction for contributions made to an individual development account by or on behalf of a qualified individual to pay qualified expenses of such individual. Limits such contributions to $2,000 per year. Defines qualified expenses as those for: (1) postsecondary educational expenses; (2) a first-home purchase; (3) business capitalization; and (4) retirement expenses. Makes such accounts exempt from tax, except the tax on unrelated business income of charitable, etc. organizations. Declares that contributions to such accounts are not subject to the gift tax or the tax on prohibited transactions.
Disregards funds in an individual development account of a demonstration project participant for purposes of all means-tested Federal programs.