HI SB2552

Increases the maximum annual tax deduction for individual housing account contributions from $5,000 to $17,200 for single filers and from $10,000 to $34,400 for married couples filing jointly.

Raises the lifetime maximum contribution limit for individual housing accounts from $25,000 to $86,000, excluding interest accrued.

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.

Requires account holders to report one-tenth of the total distribution as gross income annually over ten years after purchasing a home, with a 10% tax penalty if the property is sold before all distributions are reported.

Effective July 1, 2050, applying to taxable years beginning after December 31, 2026.