IDA Tax Credit (SWFA)

The Savings for Working Families Act (SWFA) ensures that our nation's savings and ownership policies assist working-poor families by enabling them to save, build wealth and enter the financial mainstream through the use of a financial product tailored to their needs: individual development accounts (IDAs).

IDA Tax Credit Overview

SWFA would make IDAs available to as many as 2.7 million low-income Americans. IDAs are matched savings accounts that help low-income families build appreciating assets and become financially self-reliant. The accounts are used for three purposes:

(1) buying a first home
(2) paying for post-secondary education
(3) starting or expanding a small business

Read a one-page description of the Savings for Working Families Act.

Read legislation from the 111th Congress: S. 985; H.R. 2277

Support for IDAs

SWFA has generated bi-partisan support in Congress with a record 127 cosponsors in the 110th Congress, including 50 Republicans. SWFA has passed the Senate twice and has also received considerable backing from financial institutions, corporations and nonprofit organizations around the country.

• Legislative Supporters: 111th Congress; 110th Congress; 109th Congress
• Private Sector Supporters of SWFA
• Practitioners Support SWFA

At a time when the nation's savings rate is near negative, this legislation will bring more Americans into the financial mainstream and allow broader access to opportunities for wealth accumulation.

Take Action

Write to your legislators and ask them to co-sponsor SWFA.

• From a financial institution or corporation:
  • Click here for a draft letter to your legislators
• From an individual or nonprofit:
  • Click here for a draft letter to your Senators
  • Click here for a draft letter to your Representative
• From a local legislator:
  • Click here for a draft letter to your federal legislators

IDAs in the News

Read press clips about asset building and SWFA:

Bipartisan, Bicameral Savings Bill to Expand Economic Opportunity for Working Americans
CFED News Release
May 7, 2009

House GOP Backs Savings for Working Families Act in the "American Families Agenda"
CFED News Release
May 16, 2008

"IDA Study Yields Positive Results"
States News Service
March 6, 2008

"Low Personal Savings Rate Demands Congress Incentivize Savings for All"
By Senator Joseph I. Lieberman (ID-CT)
Connecticut Post
March 5, 2008

"The Economic Elephant At the GOP Debate"
By Michael Gerson
The Washington Post
October 12, 2007

"Subsidized Accounts Get Another Look in D.C."
By Ben Jackson
American Banker
June 11, 2007

"CBS News spotlights IDAs and CFED"
CBS News
June 23, 2006

"New Programs Spur Working Poor To Begin Saving"
By Jackie Calmes
The Wall Street Journal
January 11, 2006

"Saving Incentives For All Income Levels"
By Jackie Calmes
The Wall Street Journal
January 22, 2006

Additional Resources

Timeline of federal IDA policy

Bipartisan, Bicameral Savings Bill to Expand Economic Opportunity for Working Americans
CFED News Release
May 7, 2009