HI HB2475

Establishes a new chapter creating tax-free savings accounts for individuals with disabilities in Hawaii, allowing them and their families to save for disability-related care while maintaining eligibility for state assistance.

Defines eligible individuals as those with physical or intellectual impairments substantially limiting major life activities, certified by a qualified physician (licensed physician, out-of-state physician, or commissioned U.S. military medical officer).

Permits financial institutions to establish these accounts and requires verification of account holder eligibility and that withdrawals are used only for qualified expenses including education, housing, transportation, employment, health, and administrative costs.

Requires the Department of Human Services to disregard account balances and earned interest when determining eligibility and benefit levels for state assistance programs, in compliance with federal and state regulations.

Makes interest earned in accounts and withdrawn funds exempt from state taxation.