Code of the District of Columbia

§ 1–307.67(Perm). 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 providedd in paragraph (3) of this subsection.

(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.

(c) There shall be no limit on federal or private matching funds made available to an account holder.

(d) Subject to annual available appropriations, matching funds deposited into a matching funds account or withdrawn by an account holder from a matching funds account shall be exempt from taxation under District of Columbia law; provided, that any money withdrawn from a matching funds account by an account holder for an unapproved use shall be taxed as income to the account holder, unless the funds are reinstated in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