HI HB1756

Increases the maximum annual tax deduction for individual housing account contributions from $5,000 to a new amount (left blank in draft) for single filers and from $10,000 to a new amount for married couples filing jointly.

Raises the lifetime maximum contribution limit for individual housing accounts from $25,000 to a new amount (left blank in draft), excluding accrued interest.

Individual housing accounts allow first-time homebuyers to save pre-tax dollars for down payments and closing costs on their first principal residence in Hawaii.

Removes outdated provisions related to accounts established before January 1, 1990, while maintaining the requirement that account holders report one-tenth of distributions as gross income annually over ten years after purchasing a home.

Takes effect July 1, 3000 (placeholder date), applying to taxable years beginning after December 31, 2026.