HB 1274 Summary

• Increases annual contribution limit to individual housing accounts from $5,000 to $15,000 for individual taxpayers and from $10,000 to $30,000 for married couples filing jointly.

• Raises lifetime maximum account balance from $25,000 to $200,000, excluding accrued interest.

• Allows taxpayers to deduct contributions to first-time homebuyer savings accounts from gross income, with interest earned on accounts exempt from taxation.

• Modifies total disability definition to reference HRS §235-1 instead of director discretion for determining tax liability exceptions.

• Removes obsolete provisions related to purchases before January 1, 1990, and applies changes to taxable years beginning after December 31, 2023.