HI SB358

Establishes a state income tax deduction for Hawaii residents who contribute to the HI529-Hawaii's College Savings Program, up to $4,000 annually for single filers and $8,000 for joint filers, heads of household, or surviving spouses.

Only account owners in the HI529 Program may claim the deduction for their own contributions, and contributions must be credited to the account by the last day of the taxable year (or postmarked by that date if mailed).

Excess contributions exceeding the annual deduction limit may be carried forward and deducted over up to four subsequent tax years.

Contributions deducted in prior years must be recaptured and added back to adjusted gross income if the taxpayer makes a nonqualified withdrawal from any college savings program.

Effective July 1, 2050, for taxable years beginning after December 31, 2020; income thresholds for "qualified taxpayer" eligibility are left blank in the bill text.