HI HB286

Increases the maximum annual deduction for contributions to individual housing accounts, with specific dollar amounts to be determined (replaces current limits of $5,000 for individuals and $10,000 for joint filers).

Increases the lifetime maximum account balance limit, with specific dollar amount to be determined (replaces current limit of $25,000).

Eliminates provisions allowing individuals who purchased homes before January 1, 1990, to elect alternative tax reporting methods for individual housing account distributions.

Simplifies tax treatment for homeowners who sell properties purchased with individual housing account funds, requiring them to report one-tenth of the distribution as income annually for ten years, with an additional 10% tax penalty if sold before the ten-year period ends.

Takes effect July 1, 2050, and applies to taxable years beginning after December 31, 2025.