H.B. 1701 Summary

• Increases annual individual housing account contribution limit from $5,000 to $20,000 ($10,000 to $40,000 for married couples filing jointly).

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

• Allows contributions to reduce taxable income, incentivizing first-time homebuyers to save for down payments and closing costs on Hawaii residential properties.

• Removes outdated provisions related to pre-January 1, 1990 accounts and election procedures to simplify the statute.

• Changes total disability standard reference to align with Hawaii Revised Statutes section 235-1 definition; applies to taxable years beginning after December 31, 2024.