HB 1469 Summary

• Establishes a state income tax deduction for contributions to the Hawaii college savings program (HI529) to incentivize resident participation and increase program assets.

• Allows annual deductions up to $4,000 for single filers and married couples filing separately (per spouse), and up to $8,000 for joint filers, heads of household, or surviving spouses.

• Limits deductions to account owners who contribute to their own HI529 accounts; rollovers from other state programs do not qualify for the deduction.

• Allows carryforward of unused deductions to subsequent tax years if deduction exceeds the taxpayer's Hawaii adjusted gross income.

• Requires recapture of previously deducted contributions if the taxpayer makes a nonqualified withdrawal from the account; effective for taxable years beginning after December 31, 2019.