[Code of Federal Regulations]

[Title 45, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR263.20]



[Page 155-156]

 

                        TITLE 45--PUBLIC WELFARE

 

     CHAPTER II--OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), 

ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 263_EXPENDITURES OF STATE AND FEDERAL TANF FUNDS--Table of Contents

 

     Subpart C_What Rules Apply to Individual Development Accounts?

 

Sec.  263.20  What definitions apply to Individual Development Accounts

(IDAs)?





    The following definitions apply with respect to IDAs:

    Date of acquisition means the date on which a binding contract to 

obtain, construct, or reconstruct the new principal residence is entered 

into.

    Eligible educational institution means an institution described in 

section 481(a)(1) or section 1201(a) of the Higher Education Act of 1965 

(20 U.S.C. 1088(a)(1) or 1141(a)), as such sections were in effect on 

August 21, 1996. Also, an area vocational education school (as defined 

in subparagraph (C) or (D) of section 521(4) of the Carl D. Perkins 

Vocational and Applied Technology Education Act (20 U.S.C. 2471(4)) that 

is in any State (as defined in section 521(33) of such Act), as such 

sections were in effect on August 21, 1996.

    Individual Development Account (IDA) means an account established 

by, or for, an individual who is eligible for assistance under the TANF 

program, to allow the individual to accumulate funds for specific 

purposes. Notwithstanding any other provision of law (other than the 

Internal Revenue Code of 1986), the funds in an IDA account must be 

disregarded in determining eligibility for, or the amount of, assistance 

in any Federal means-tested programs.

    Post-secondary educational expenses means a student's tuition and 

fees required for the enrollment or attendance at an eligible 

educational institution, and required course fees, books, supplies, and 

equipment required at an eligible educational institution.

    Qualified acquisition costs means the cost of obtaining, 

constructing, or reconstructing a residence. The term includes any usual 

or reasonable settlement, financing, or other closing costs.

    Qualified business means any business that does not contravene State 

law or public policy.

    Qualified business capitalization expenses means business expenses 

pursuant to a qualified plan.

    Qualified entity means a nonprofit, tax-exempt organization, or a 

State or local government agency that works cooperatively with a 

nonprofit, tax-exempt organization.

    Qualified expenditures means expenses entailed in a qualified plan, 

including capital, plant equipment, working capital, and inventory 

expenses.

    Qualified first-time home buyer means a taxpayer (and, if married, 

the taxpayer's spouse) who has not owned a principal residence during 

the three-year period ending on the date of acquisition of the new 

principal residence.

    Qualified plan means a business plan that is approved by a financial 

institution, or by a nonprofit loan fund having demonstrated fiduciary 

integrity. It includes a description of services or goods to be sold, a 

marketing plan, and projected financial statements, and it may require 

the eligible recipient to obtain the assistance of an experienced 

entrepreneurial advisor.

    Qualified principal residence means the place a qualified first-time 

home buyer



[[Page 156]]



will reside in accordance with the meaning of section 1034 of the 

Internal Revenue Code of 1986 (26 U.S.C. 1034). The qualified 

acquisition cost of the residence cannot exceed the average purchase 

price of similar residences in the area.