HI HB707

Creates a state income tax deduction for contributions to Hawaii 529 college savings accounts and Hawaii ABLE (Achieving a Better Life Experience) savings accounts for individuals with disabilities

Sets maximum annual deduction at $5,000 for single filers and married individuals filing separately, and $10,000 for married couples filing jointly, heads of households, and surviving spouses

Withdrawals used for non-qualified expenses are subject to recapture and taxed as income, consistent with federal penalties

Conforms Hawaii law to federal Tax Cuts and Jobs Act of 2017 changes, allowing 529 plan funds to be used for K-12 educational expenses at public, private, or religious schools

Applies to taxable years beginning after December 31, 2024