HI HB1837

Increases the maximum annual tax deduction for individual housing account contributions from $5,000 to an unspecified higher amount for single filers and from $10,000 to an unspecified higher amount for married couples filing jointly.

Raises the lifetime maximum deduction cap for individual housing accounts from $25,000 to an unspecified higher amount, excluding interest accrued.

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

Funds must remain in the account for at least 365 days before distribution, and the full account balance must be distributed within 120 months of the first contribution.

Applies to taxable years beginning after December 31, 2026.