§ 1–307.67. Matching funds and return of matching funds; tax exemption.

(a) The administering organization shall deposit into a matching funds account for the account holder matching funds of at least $2 for every dollar that the account holder deposits into the account.

(b) Subject to annual available appropriations, the District of Columbia shall provide to an administering organization matching funds of $2, to be deposited into the matching funds account for the account holder, for every dollar that the account holder deposits into the opportunity account; provided that:

(1) The District of Columbia shall not provide matching funds for the account unless the administering organization provides matching funds in at least the same amount;

(2) The District of Columbia shall provide no more than $3,000 in the aggregate in matching funds per account, except as provided in paragraph (3) of this subsection; and

(3) The Commissioner may waive the requirement in subsection (a) of this section and may provide matching funds of up to $4 for every dollar the account holder deposits into the opportunity account when adequate federal or private matching funds are not available. For each additional dollar of matching funds that the District provides to an opportunity account pursuant to such a waiver, the aggregate matching funds limit set forth in paragraph (2) of this subsection for that account shall be increased by $1.

(d) Subject to annual available appropriations, matching funds deposited into a matching funds account or withdrawn by an account holder from a matching funds account shall be exempt from taxation under District of Columbia law; provided, that any money withdrawn from a matching funds account by an account holder for an unapproved use shall be taxed as income to the account holder, unless the funds are reinstated in accordance with § 1-307.68(d).

(e) The administering organization shall deposit matching funds in an account separate from the opportunity account. The separate account may be the opportunity account reserve fund account.

(f) Except for matching funds used for an approved purpose under § 1-307.68(a) before 10 years after the establishment of the opportunity account, the matching funds shall be returned to the District of Columbia and administering organization in the same amounts as the matching funds were provided 10 years after the establishment of the opportunity account.

(Apr. 3, 2001, D.C. Law 13-266, § 8, 48 DCR 1240; June 19, 2001, D.C. Law 13-313, § 26(a), (b), 48 DCR 1873; Oct. 26, 2001, D.C. Law 14-42, § 17, 48 DCR 7612; Mar. 3, 2010, D.C. Law 18-111, § 7036, 57 DCR 181; Dec. 3, 2020, D.C. Law 23-149, § 6002(b), 67 DCR 10493.)

Effect of Amendments

D.C. Law 14-42 validated a previously made technical correction in subsec. (d).

D.C. Law 13-313, rewrote subsec. (d); and, in subsec. (f), substituted “Except for matching funds used for an approved purpose under § 1-307.68(a) before 10 years after the establishment of the opportunity account,” for “Except for matching funds used to purchase a federally qualified individual retirement account as permitted under § 1-307.68(a)(8)”. Prior to amendment, subsec. (d) read:

“(d) Subject to appropriations, matching funds deposited into a matching funds account or withdrawn by an account holder from a matching funds account shall be exempt from taxation under District of Columbia law; provided, that:

“(1) Interest earned on the matching funds shall not be exempt from taxation; and

“(2) Any money withdrawn from a matching funds account for an unapproved use shall be taxed as income unless it is reinstated in the account as provided in section 9(d).”

D.C. Law 18-111, in subsecs. (b) and (d), substituted “Subject to annual available appropriations” for “Subject to appropriations”.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 301(b) of Coronavirus Support Second Congressional Review Emergency Amendment Act of 2020 (D.C. Act 23-405, Aug. 19, 2020, 67 DCR 10235).

For temporary (90 days) amendment of this section, see § 301(b) of Coronavirus Support Congressional Review Emergency Amendment Act of 2020 (D.C. Act 23-328, June 8, 2020, 67 DCR 7598).

For temporary (90 days) amendment of this section, see § 301(b) of Coronavirus Support Emergency Amendment Act of 2020 (D.C. Act 23-326, May 27, 2020, 67 DCR 7045).

For temporary (90 day) amendment of section, see § 17 of Technical Amendments Emergency Act of 2001 (D.C. Act 14-108, August 3, 2001, 48 DCR 7622).

For temporary (90 day) amendment of section, see § 7036 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7036 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 301(b) of Coronavirus Support Temporary Amendment Act of 2020 (D.C. Law 23-130, Oct. 9, 2020, 67 DCR 8622).