HI HB2612

Allows Hawaii taxpayers to deduct contributions to qualified 529 college savings plans (section 529 of the Internal Revenue Code) from their state income tax.

Individual taxpayers may deduct up to $5,000 annually; married couples filing separately may each deduct up to $5,000; married couples filing jointly, heads of household, and surviving spouses may deduct up to $10,000 annually.

Excess deductions that exceed a taxpayer's taxable income for the year may be carried forward and used against taxable income in subsequent years until fully exhausted.

Applies to taxable years beginning after December 31, 2013.

Amends section 235-7, Hawaii Revised Statutes, to add these deductions to the state's income tax code.