IDA Program Flyer

The Individual Development Accounts (IDA) Program is an asset-development program that assists low-moderate income Hoosiers in achieving long-term financial self-sufficiency. IDA was established in 1997 through Indiana State legislation (I.C. 4-4-28) and, beginning in 1998, also received federal funding through the U.S. Department of Health and Human Services Assets for Independence (AFI) Grant. In 2016, the AFI Program ended, and as of 2018, IDA has been administered as a fully State-funded program.

Operating behind the rationale that income alone is not enough for individuals to break trends of generational poverty, the IDA Program focuses on asset building as a key component toward building wealth and developing the knowledge and skills needed to achieve financial independence. IDA helps individuals and families with limited means to attain their goals through matched-savings incentives, financial education, and developing regular savings habits.

Qualified IDA participants work with program administrators to set savings goals and make regular deposits. Participants also receive one-on-one counseling, case management, and financial literacy education covering topics such as budgeting, savings, credit, banking, taxes, and other money management strategies as well as education and training related to their specific asset goals.

IDA participants are eligible to receive up to $4,500 in State match funds. Participant savings are matched at a rate of $3 for every $1 saved to be used toward the purchase of one or more major assets. IDA eligible assets include:

• Purchasing of a primary residence located in Indiana.
• Education and job training.
• Starting or expanding a small business located in Indiana.
• Making essential repairs to owner-occupied housing located in Indiana.
• Purchasing a vehicle for employment, education, or job training purposes.

Indiana’s IDA Program is administered by local community-based non-profit organizations with oversight by IHCDA. Prospective participants apply for IDA directly through local administrators serving their area.

IDA Tax Credit Program

In conjunction with the conventional IDA Program, IHCDA also oversees the IDA Tax Credit Program as an opportunity for program administrators to fund additional IDA accounts beyond those available through direct State appropriation.

Like the conventional IDA Program, the IDA Tax Credit Program was also established through Indiana State legislation (I.C. 6-3.1-18, I.C. 4-4-28-13); however, instead of being funded directly, this program assists IDA administrators in raising donations to fund a supplemental number of IDA accounts. A total of $200,000 in tax credits is awarded annually for distribution by IDA administrators to use as an incentive to help them leverage the contributions from individuals and businesses. Tax credits are distributed to donors at 50% of the contribution amount and are subtracted from a donor's state income tax liability.

With regard to program participants, the IDA Tax Credit Program is administered in largely the same manner as the conventional IDA Program.