Hawaii HB286 updates the Individual Housing Account Program to increase contribution limits and account maximums.

Hawaii HB286 amends the Individual Housing Account Program to increase contribution limits and account maximums. The bill updates the program to reflect current housing prices more accurately. Contributions to the account will reduce taxable income, incentivizing first-time home ownership. The maximum contribution for an individual is $20,000, or $40,000 for a joint return, with a lifetime limit of $200,000. The bill also modifies rules for account transfers, distributions, and tax liabilities. The changes apply to taxable years beginning after December 31, 2025.

Hawaii HB286 updates the Individual Housing Account Program to increase contribution limits and account maximums.

Hawaii HB286 amends the Individual Housing Account Program to increase contribution limits and account maximums. The bill updates the program to reflect current housing prices more accurately. Contributions to the account will reduce taxable income, incentivizing first-time home ownership. The maximum contribution for an individual is $20,000, or $40,000 for a joint return, with a lifetime limit of $200,000. The bill also modifies rules for account transfers, distributions, and tax liabilities. The changes apply to taxable years beginning after December 31, 2025.