HI SB358

Establishes a state income tax deduction for Hawaii residents making contributions to the HI529-Hawaii's College Savings Program, with annual deduction limits of $4,000 for single filers and $8,000 for joint filers, heads of household, or surviving spouses.

Requires that only qualified taxpayers who are account owners in the HI529 program can claim the deduction, and contributions must be credited to the account by the last day of the taxable year to be deductible.

Allows excess contributions exceeding the annual maximum to be carried forward and deducted against Hawaii adjusted gross income for up to four subsequent tax years.

Requires recapture of previously deducted contributions if the taxpayer makes a nonqualified withdrawal, adding the deducted amount back to Hawaii adjusted gross income for the year of withdrawal.

Effective July 1, 2050, applying to taxable years beginning after December 31, 2020.