HI HB286

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

Raises the lifetime maximum deduction limit for individual housing account contributions from $25,000 to an unspecified amount, excluding interest

Individual housing accounts allow Hawaii residents to save pre-tax money for down payments and closing costs on their first principal residence

Removes outdated provisions related to accounts established before January 1, 1990, and elections made before January 1, 1991

Takes effect July 1, 2050, and applies to taxable years beginning after December 31, 2025 (note: the specific dollar amounts were left blank in the bill for future determination)