HI HB634

Increases annual contribution limits to Individual Housing Accounts (IHAs) from $5,000 to $15,000 for individual taxpayers and from $10,000 to $30,000 for married couples filing jointly.

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

Allows taxpayers to deduct IHA contributions from gross income to reduce taxable income, with tax-deferred interest earnings on account funds.

Maintains existing requirements that accounts must be held at insured financial institutions, funds used only for first-time homebuyer down payments and closing costs on Hawaii properties, and distributions must occur within 10 years.

Applies to taxable years beginning after December 31, 2023, and simplifies prior law provisions regarding homebuyers who purchased property before 1990.