Sec. 16. (a) Money withdrawn from an individual's account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the money is used for at least one (1) of the following:
(1) To pay for costs (including tuition, laboratory costs, books, computer costs, and other costs) at an accredited postsecondary educational institution or a vocational school that is not a postsecondary educational institution for the individual or for a dependent of the individual.
(2) To pay for the costs (including tuition, laboratory costs, books, computer costs, and other costs) associated with an accredited or a licensed training program that may lead to employment for the individual or for a dependent of the individual.
(3) To purchase a primary residence located in Indiana for the individual or for a dependent of the individual or to reduce the principal amount owed on a primary residence located in Indiana that was purchased by the individual or a dependent of the individual with money from an individual development account.
(4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of the individual's primary residence located in Indiana.
(5) To begin or to purchase part or all of a business based in Indiana or to expand an existing small business based in Indiana.
(6) Subject to section 8(b) of this chapter, to purchase a motor vehicle.
(b) At the time of requesting authorization under section 15 of this chapter to withdraw money from an individual's account under subsection (a)(5), the individual must provide the community development corporation with a business plan that:
(1) has been approved by a financial institution or is approved by the community development corporation;
(2) includes a description of services or goods to be sold, a marketing plan, and projected financial statements; and
(3) may require the individual to obtain the assistance of an experienced business advisor.
As added by P.L.15-1997, SEC.1. Amended by P.L.289-2001, SEC.9; P.L.135-2002, SEC.1; P.L.2-2007, SEC.25; P.L.150-2007, SEC.5; P.L.50-2016, SEC.9.