HB 286: Individual Housing Account; Pre-tax Savings; Maximum Annual Deduction; Increase
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-03-19
Current Status:
Failed
(2026-04-02: Received notice of the discharge of all House Conferees (Hse. Com. No. 457).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
For taxable years, beginning 1/1/2026, increases the maximum annual deduction for contributions to, and maximum account levels for, individual housing accounts. Takes effect 7/1/2050. (SD1)
Increases the maximum annual deduction for contributions to, and maximum account levels for, individual housing accounts. Effective 7/1/3000. (HD2)
Increases the maximum annual deduction for contributions to, and maximum account levels for, individual housing accounts. Effective 7/1/3000. (HD1)
Updates the Individual Housing Account statute to reflect the current cost of housing down-payments more accurately.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
286 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
|
|
STATE OF HAWAII |
S.D. 1 |
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents. As the cost of housing continues to rise, the State must assist residents in finding methods of increasing the availability of homeownership. Saving for a down-payment on a home loan continues to be a barrier for many Hawaii residents with few programs available to assist in this endeavor.
Contributions to the first-time home buyer savings account will reduce taxable income. This incentivizes first time home ownership through saving for a down payment and closing costs. Accordingly, the purpose of this Act is to increase the maximum annual deduction for contributions into, and maximum account levels for, individual housing accounts, to reflect current housing prices more accurately.
SECTION 2. Section 235-5.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (a) and (b) to read:
"(a) There shall be allowed as a deduction from
gross income the amount, not to exceed [$5,000,] $ ,
paid in cash during the taxable year by an individual taxpayer to an individual
housing account established for the individual's benefit to provide funding for
the purchase of the individual's first principal residence. A deduction not to exceed [$10,000] $
shall be allowed for a married couple filing a joint return. No deduction shall be allowed on any amounts
distributed less than three hundred sixty-five days from the date on which a
contribution is made to the account. Any
deduction claimed for a previous taxable year for amounts distributed less than
three hundred sixty-five days from the date on which a contribution was made
shall be disallowed and the amount deducted shall be included in the previous
taxable year's gross income and the tax reassessed. The interest paid or accrued within the
taxable year on the account shall not be included in the individual's gross
income. For purposes of this section,
the term "first principal residence" means a residential property
purchased with the payment or distribution from the individual housing account
which shall be owned and occupied as the only home by an individual who did not
have any interest in, individually, or whose spouse did not have any interest
in, if the individual is married, a residential property within the last five
years of opening the individual housing account.
In the case of a married couple
filing separate returns, the sum of the deductions allowable to each of them
for the taxable year shall not exceed [$5,000,] $ ,
or [$10,000] $
for a joint return, for amounts paid in cash, excluding interest paid or
accrued thereon.
The amounts paid in cash allowable
as a deduction under this section to an individual for all taxable years shall
not exceed [$25,000,] $ ,
excluding interest paid or accrued. In
the case of married individuals having separate individual housing accounts,
the sum of the separate accounts and the deduction under this section shall not
exceed [$25,000,] $ ,
excluding interest paid or accrued thereon.
(b) For purposes of this section, the term "individual housing account" means a trust created or organized in Hawaii for the exclusive benefit of an individual, or, in the case of a married individual, for the exclusive benefit of the individual and spouse jointly, but only if the written governing instrument creating the trust meets the following requirements:
(1) Contributions
shall not be accepted for the taxable year in excess of [$5,000] $
(or [$10,000] $
in the case of a joint return) or in excess of [$25,000] $
for all taxable years, exclusive of interest paid or accrued;
(2) The trustee is a
bank, a savings and loan association, a credit union, or a depository financial
services loan company, chartered, licensed, or supervised under federal or
state law, whose accounts are insured by the Federal Deposit Insurance
Corporation, the National Credit Union Administration, or any agency of [this]
the State or any federal agency established for the purpose of insuring
accounts in these financial institutions.
The financial institution [must] shall actively make
residential real estate mortgage loans in Hawaii;
(3) The assets of the trust shall be invested only in fully insured savings or time deposits. Funds held in the trust may be commingled for purposes of investment, but individual records shall be maintained by the trustee for each individual housing account holder that show all transactions in detail;
(4) The entire interest of an individual or married couple for whose benefit the trust is maintained shall be distributed to the individual or couple not later than one hundred twenty months after the date on which the first contribution is made to the trust;
(5) Except as provided in subsection (g), the trustee shall not distribute the funds in the account unless the trustee:
(A) Verifies that the money is to be used for the purchase of a first principal residence located in Hawaii, and provides that the instrument of payment is payable to the mortgagor, construction contractor, or other vendor of the property purchased; or
(B) Withholds an amount equal to ten per cent of the amount withdrawn from the account and remits this amount to the director within ten days after the date of the withdrawal. The amount withheld shall be applied to the liability of the taxpayer under subsections (c) and (e); and
(6) If any amounts are
distributed before the expiration of three hundred sixty-five days from the
date on which a contribution is made to the account, the trustee shall [so]
notify in writing the taxpayer and the director. If the trustee makes the verification
required in paragraph (5)(A), then the department shall disallow the deduction
under subsection (a) and subsections (c), (e), and (f) shall not apply to that
amount. If the trustee withholds an
amount under paragraph (5)(B), then the department shall disallow the deduction
under subsection (a) and subsection (e) shall apply, but subsection (c) shall
not apply."
2. By amending subsections (f) and (g) to read:
"(f) If the individual for whose benefit the
individual housing account was established purchases a residential property in
Hawaii with the distribution from the individual housing account[:
(1) Before January
1, 1990, and if the individual sells in any manner or method or by use of any
instrument conveying or transferring the residential property, the gross income
of the individual under this chapter for the taxable year in which the
residential property is sold, conveyed, or transferred, whichever is
applicable, shall include an amount equal to the amount of the distribution
from the individual housing account, and in addition, the gross income of the
individual shall be increased by an amount equal to ten per cent of the total
distribution from the individual housing account; or
(2) After December
31, 1989], the individual shall report one-tenth of the total distribution
from the individual housing account used to purchase the residential property
as gross income in the taxable year in which the distribution is completed and
in each taxable year thereafter until all of the distribution has been included
in the individual's gross income at the end of the tenth taxable year after the
purchase of the residential property. If
the individual sells in any manner or method or by use of any instrument
conveying or transferring the residential property, the gross income of the
individual under this chapter for the taxable year in which the residential
property is sold, conveyed, or transferred, whichever is applicable, shall
include an amount equal to the amount of the distribution from the individual
housing account not previously reported as gross income, and in addition, the
tax liability of the individual shall be increased by an amount equal to ten
per cent of the total distribution from the individual housing account. If the individual sells the residential
property in any manner as provided in this [paragraph] subsection
after all of the distribution has been included in the individual's gross
income at the end of the tenth taxable year after the purchase of the
residential property, the tax liability of the individual shall not be
increased by an amount equal to ten per cent of the total distribution from the
individual housing account.
[An individual who purchased a residential
property in Hawaii with the distribution from an individual housing account
before January 1, 1990, who is subject to paragraph (1) may elect to report as
provided in paragraph (2). The election
shall be made before January 1, 1991. If
the individual makes the election, the individual shall report one-tenth of the
total distribution from the individual housing account as gross income in the
taxable year in which the election occurs and in each taxable year thereafter
until all of the distribution has been included in gross income as provided by
paragraph (2). If the individual making
the election sells the residential property in any manner as provided in
paragraph (2), then the individual shall include as income the amount of the
distribution not previously reported as income and increase the individual's
tax liability as provided in the second sentence of paragraph (2), except when
the third sentence of paragraph (2) applies.
In the alternative, any
individual subject to paragraph (2) who established the individual housing
account before January 1, 1990, may elect within one year after the date of
purchase, to be subject to paragraph (1).]
(g) No tax liability shall be imposed under this section if:
(1) The payment or distribution is attributable to the individual dying or becoming totally disabled; or
(2) Residential property subject to subsection (f) is transferred by will or by operation of law or sold due to the death or total disability of an individual or individual's spouse,
subject to the following:
An individual shall not be
considered to be totally disabled unless proof is furnished of the total
disability [in the form and manner as the director may require].
Upon the death of an individual for
whose benefit an individual housing account has been established, the funds in
the account shall be payable to the estate of the individual; provided that if
the account was held jointly by the decedent and a spouse of the decedent, the
account shall terminate and be paid to the surviving spouse; or, if the
surviving spouse [so] elects, the spouse may continue the account as an
individual housing account. Upon the
total disability of an individual for whose benefit an individual housing
account has been established, the individual or the individual's authorized
representative may elect to continue the account or terminate the account and
be paid the assets; provided that if the account was held jointly by a totally
disabled person and a spouse of that person, then the spouse or an authorized
representative may elect to continue the account or terminate the account and
be paid the assets."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2025.
Report Title:
Individual Housing Account; Pre-tax Savings; Maximum Annual Deduction; Increase
Description:
For taxable years, beginning 1/1/2026, increases the maximum annual deduction for contributions to, and maximum account levels for, individual housing accounts. Takes effect 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
286 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents. As the cost of housing continues to rise, the State must assist residents in finding methods of increasing the availability of homeownership. Saving for a down-payment on a home loan continues to be a barrier for many Hawaii residents with few programs available to assist in this endeavor.
Contributions to the first-time home buyer savings account will reduce taxable income. This incentivizes first time home ownership through saving for a down payment and closing costs. Accordingly, the purpose of this Act is to increase the maximum annual deduction for contributions into, and maximum account levels for, individual housing accounts, to reflect current housing prices more accurately.
SECTION 2. Section 235-5.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (a) and (b) to read:
"(a) There shall be allowed as a deduction from
gross income the amount, not to exceed [$5,000,] $ ,
paid in cash during the taxable year by an individual taxpayer to an individual
housing account established for the individual's benefit to provide funding for
the purchase of the individual's first principal residence. A deduction not to exceed [$10,000] $
shall be allowed for a married couple filing a joint return. No deduction shall be allowed on any amounts
distributed less than three hundred sixty-five days from the date on which a
contribution is made to the account. Any
deduction claimed for a previous taxable year for amounts distributed less than
three hundred sixty-five days from the date on which a contribution was made
shall be disallowed and the amount deducted shall be included in the previous
taxable year's gross income and the tax reassessed. The interest paid or accrued within the
taxable year on the account shall not be included in the individual's gross
income. For purposes of this section,
the term "first principal residence" means a residential property
purchased with the payment or distribution from the individual housing account
which shall be owned and occupied as the only home by an individual who did not
have any interest in, individually, or whose spouse did not have any interest
in, if the individual is married, a residential property within the last five
years of opening the individual housing account.
In the case of a married couple
filing separate returns, the sum of the deductions allowable to each of them
for the taxable year shall not exceed [$5,000,] $ ,
or [$10,000] $
for a joint return, for amounts paid in cash, excluding interest paid or
accrued thereon.
The amounts paid in cash allowable
as a deduction under this section to an individual for all taxable years shall
not exceed [$25,000,] $ ,
excluding interest paid or accrued. In
the case of married individuals having separate individual housing accounts,
the sum of the separate accounts and the deduction under this section shall not
exceed [$25,000,] $ ,
excluding interest paid or accrued thereon.
(b) For purposes of this section, the term "individual housing account" means a trust created or organized in Hawaii for the exclusive benefit of an individual, or, in the case of a married individual, for the exclusive benefit of the individual and spouse jointly, but only if the written governing instrument creating the trust meets the following requirements:
(1) Contributions
shall not be accepted for the taxable year in excess of [$5,000] $
(or [$10,000] $
in the case of a joint return) or in excess of [$25,000] $
for all taxable years, exclusive of interest paid or accrued;
(2) The trustee is a bank, a savings and loan association, a credit union, or a depository financial services loan company, chartered, licensed, or supervised under federal or state law, whose accounts are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or any agency of this State or any federal agency established for the purpose of insuring accounts in these financial institutions. The financial institution must actively make residential real estate mortgage loans in Hawaii;
(3) The assets of the trust shall be invested only in fully insured savings or time deposits. Funds held in the trust may be commingled for purposes of investment, but individual records shall be maintained by the trustee for each individual housing account holder that show all transactions in detail;
(4) The entire interest of an individual or married couple for whose benefit the trust is maintained shall be distributed to the individual or couple not later than one hundred twenty months after the date on which the first contribution is made to the trust;
(5) Except as provided in subsection (g), the trustee shall not distribute the funds in the account unless the trustee:
(A) Verifies that the money is to be used for the purchase of a first principal residence located in Hawaii, and provides that the instrument of payment is payable to the mortgagor, construction contractor, or other vendor of the property purchased; or
(B) Withholds an amount equal to ten per cent of the amount withdrawn from the account and remits this amount to the director within ten days after the date of the withdrawal. The amount withheld shall be applied to the liability of the taxpayer under subsections (c) and (e); and
(6) If any amounts are distributed before the expiration of three hundred sixty-five days from the date on which a contribution is made to the account, the trustee shall so notify in writing the taxpayer and the director. If the trustee makes the verification required in paragraph (5)(A), then the department shall disallow the deduction under subsection (a) and subsections (c), (e), and (f) shall not apply to that amount. If the trustee withholds an amount under paragraph (5)(B), then the department shall disallow the deduction under subsection (a) and subsection (e) shall apply, but subsection (c) shall not apply."
2. By amending subsections (f) and (g) to read:
"(f) If the individual for whose benefit the
individual housing account was established purchases a residential property in
Hawaii with the distribution from the individual housing account[:
(1) Before January
1, 1990, and if the individual sells in any manner or method or by use of any
instrument conveying or transferring the residential property, the gross income
of the individual under this chapter for the taxable year in which the
residential property is sold, conveyed, or transferred, whichever is
applicable, shall include an amount equal to the amount of the distribution
from the individual housing account, and in addition, the gross income of the
individual shall be increased by an amount equal to ten per cent of the total
distribution from the individual housing account; or
(2) After December
31, 1989], the individual shall report one-tenth of the total distribution
from the individual housing account used to purchase the residential property
as gross income in the taxable year in which the distribution is completed and
in each taxable year thereafter until all of the distribution has been included
in the individual's gross income at the end of the tenth taxable year after the
purchase of the residential property. If
the individual sells in any manner or method or by use of any instrument
conveying or transferring the residential property, the gross income of the
individual under this chapter for the taxable year in which the residential
property is sold, conveyed, or transferred, whichever is applicable, shall
include an amount equal to the amount of the distribution from the individual
housing account not previously reported as gross income, and in addition, the
tax liability of the individual shall be increased by an amount equal to ten
per cent of the total distribution from the individual housing account. If the individual sells the residential
property in any manner as provided in this paragraph after all of the distribution
has been included in the individual's gross income at the end of the tenth
taxable year after the purchase of the residential property, the tax liability
of the individual shall not be increased by an amount equal to ten per cent of
the total distribution from the individual housing account.
[An individual who purchased a residential
property in Hawaii with the distribution from an individual housing account
before January 1, 1990, who is subject to paragraph (1) may elect to report as
provided in paragraph (2). The election
shall be made before January 1, 1991. If
the individual makes the election, the individual shall report one-tenth of the
total distribution from the individual housing account as gross income in the
taxable year in which the election occurs and in each taxable year thereafter
until all of the distribution has been included in gross income as provided by
paragraph (2). If the individual making
the election sells the residential property in any manner as provided in
paragraph (2), then the individual shall include as income the amount of the
distribution not previously reported as income and increase the individual's
tax liability as provided in the second sentence of paragraph (2), except when
the third sentence of paragraph (2) applies.
In the alternative, any
individual subject to paragraph (2) who established the individual housing
account before January 1, 1990, may elect within one year after the date of
purchase, to be subject to paragraph (1).]
(g) No tax liability shall be imposed under this section if:
(1) The payment or distribution is attributable to the individual dying or becoming totally disabled; or
(2) Residential property subject to subsection (f) is transferred by will or by operation of law or sold due to the death or total disability of an individual or individual's spouse,
subject to the following:
An individual shall not be
considered to be totally disabled unless proof is furnished of the total
disability [in the form and manner as the director may require].
Upon the death of an individual for whose benefit an individual housing account has been established, the funds in the account shall be payable to the estate of the individual; provided that if the account was held jointly by the decedent and a spouse of the decedent, the account shall terminate and be paid to the surviving spouse; or, if the surviving spouse so elects, the spouse may continue the account as an individual housing account. Upon the total disability of an individual for whose benefit an individual housing account has been established, the individual or the individual's authorized representative may elect to continue the account or terminate the account and be paid the assets; provided that if the account was held jointly by a totally disabled person and a spouse of that person, then the spouse or an authorized representative may elect to continue the account or terminate the account and be paid the assets."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2025.
Report Title:
Individual Housing Account; Pre-tax Savings
Description:
Increases the maximum annual deduction for contributions to, and maximum account levels for, individual housing accounts. Effective 7/1/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
286 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents. As the cost of housing continues to rise, the State must assist residents in finding methods of increasing the availability of homeownership. Saving for a down-payment on a home loan continues to be a barrier for many Hawaii residents with few programs available to assist in this endeavor.
Contributions to the first-time home buyer savings account will reduce taxable income. This incentivizes first time home ownership through saving for a down payment and closing costs. Accordingly, the purpose of this Act is to increase the maximum annual deduction for contributions into, and maximum account levels for, individual housing accounts, to reflect current housing prices more accurately.
SECTION 2. Section 235-5.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (a) and (b) to read:
"(a) There shall be allowed as a deduction from
gross income the amount, not to exceed [$5,000,] $20,000, paid in
cash during the taxable year by an individual taxpayer to an individual housing
account established for the individual's benefit to provide funding for the
purchase of the individual's first principal residence. A deduction not to exceed [$10,000] $40,000
shall be allowed for a married couple filing a joint return. No deduction shall be allowed on any amounts
distributed less than three hundred sixty-five days from the date on which a
contribution is made to the account. Any
deduction claimed for a previous taxable year for amounts distributed less than
three hundred sixty-five days from the date on which a contribution was made
shall be disallowed and the amount deducted shall be included in the previous
taxable year's gross income and the tax reassessed. The interest paid or accrued within the
taxable year on the account shall not be included in the individual's gross
income. For purposes of this section,
the term "first principal residence" means a residential property
purchased with the payment or distribution from the individual housing account
which shall be owned and occupied as the only home by an individual who did not
have any interest in, individually, or whose spouse did not have any interest
in, if the individual is married, a residential property within the last five
years of opening the individual housing account.
In the case of a married couple
filing separate returns, the sum of the deductions allowable to each of them
for the taxable year shall not exceed [$5,000,] $20,000, or [$10,000]
$40,000 for a joint return, for amounts paid in cash, excluding interest
paid or accrued thereon.
The amounts paid in cash allowable
as a deduction under this section to an individual for all taxable years shall
not exceed [$25,000,] $200,000, excluding interest paid or
accrued. In the case of married
individuals having separate individual housing accounts, the sum of the
separate accounts and the deduction under this section shall not exceed [$25,000,]
$200,000, excluding interest paid or accrued thereon.
(b) For purposes of this section, the term "individual housing account" means a trust created or organized in Hawaii for the exclusive benefit of an individual, or, in the case of a married individual, for the exclusive benefit of the individual and spouse jointly, but only if the written governing instrument creating the trust meets the following requirements:
(1) Contributions
shall not be accepted for the taxable year in excess of [$5,000] $20,000
(or [$10,000] $40,000 in the case of a joint return) or in excess
of [$25,000] $200,000 for all taxable years, exclusive of
interest paid or accrued;
(2) The trustee is a bank, a savings and loan association, a credit union, or a depository financial services loan company, chartered, licensed, or supervised under federal or state law, whose accounts are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or any agency of this State or any federal agency established for the purpose of insuring accounts in these financial institutions. The financial institution must actively make residential real estate mortgage loans in Hawaii;
(3) The assets of the trust shall be invested only in fully insured savings or time deposits. Funds held in the trust may be commingled for purposes of investment, but individual records shall be maintained by the trustee for each individual housing account holder that show all transactions in detail;
(4) The entire interest of an individual or married couple for whose benefit the trust is maintained shall be distributed to the individual or couple not later than one hundred twenty months after the date on which the first contribution is made to the trust;
(5) Except as provided in subsection (g), the trustee shall not distribute the funds in the account unless the trustee:
(A) Verifies that the money is to be used for the purchase of a first principal residence located in Hawaii, and provides that the instrument of payment is payable to the mortgagor, construction contractor, or other vendor of the property purchased; or
(B) Withholds an amount equal to ten per cent of the amount withdrawn from the account and remits this amount to the director within ten days after the date of the withdrawal. The amount withheld shall be applied to the liability of the taxpayer under subsections (c) and (e); and
(6) If any amounts are distributed before the expiration of three hundred sixty-five days from the date on which a contribution is made to the account, the trustee shall so notify in writing the taxpayer and the director. If the trustee makes the verification required in paragraph (5)(A), then the department shall disallow the deduction under subsection (a) and subsections (c), (e), and (f) shall not apply to that amount. If the trustee withholds an amount under paragraph (5)(B), then the department shall disallow the deduction under subsection (a) and subsection (e) shall apply, but subsection (c) shall not apply."
2. By amending subsections (f) and (g) to read:
"(f) If the individual for whose benefit the
individual housing account was established purchases a residential property in
Hawaii with the distribution from the individual housing account[:
(1) Before January
1, 1990, and if the individual sells in any manner or method or by use of any
instrument conveying or transferring the residential property, the gross income
of the individual under this chapter for the taxable year in which the
residential property is sold, conveyed, or transferred, whichever is
applicable, shall include an amount equal to the amount of the distribution
from the individual housing account, and in addition, the gross income of the
individual shall be increased by an amount equal to ten per cent of the total
distribution from the individual housing account; or
(2) After December
31, 1989], the individual shall report one-tenth of the total distribution
from the individual housing account used to purchase the residential property
as gross income in the taxable year in which the distribution is completed and
in each taxable year thereafter until all of the distribution has been included
in the individual's gross income at the end of the tenth taxable year after the
purchase of the residential property. If
the individual sells in any manner or method or by use of any instrument
conveying or transferring the residential property, the gross income of the
individual under this chapter for the taxable year in which the residential
property is sold, conveyed, or transferred, whichever is applicable, shall
include an amount equal to the amount of the distribution from the individual
housing account not previously reported as gross income, and in addition, the
tax liability of the individual shall be increased by an amount equal to ten
per cent of the total distribution from the individual housing account. If the individual sells the residential
property in any manner as provided in this paragraph after all of the distribution
has been included in the individual's gross income at the end of the tenth
taxable year after the purchase of the residential property, the tax liability
of the individual shall not be increased by an amount equal to ten per cent of
the total distribution from the individual housing account.
[An individual who purchased a residential
property in Hawaii with the distribution from an individual housing account
before January 1, 1990, who is subject to paragraph (1) may elect to report as
provided in paragraph (2). The election
shall be made before January 1, 1991. If
the individual makes the election, the individual shall report one-tenth of the
total distribution from the individual housing account as gross income in the
taxable year in which the election occurs and in each taxable year thereafter
until all of the distribution has been included in gross income as provided by
paragraph (2). If the individual making
the election sells the residential property in any manner as provided in
paragraph (2), then the individual shall include as income the amount of the
distribution not previously reported as income and increase the individual's
tax liability as provided in the second sentence of paragraph (2), except when
the third sentence of paragraph (2) applies.
In the alternative, any
individual subject to paragraph (2) who established the individual housing
account before January 1, 1990, may elect within one year after the date of
purchase, to be subject to paragraph (1).]
(g) No tax liability shall be imposed under this section if:
(1) The payment or distribution is attributable to the individual dying or becoming totally disabled; or
(2) Residential property subject to subsection (f) is transferred by will or by operation of law or sold due to the death or total disability of an individual or individual's spouse,
subject to the following:
An individual shall not be
considered to be totally disabled unless proof is furnished of the total
disability [in the form and manner as the director may require].
Upon the death of an individual for whose benefit an individual housing account has been established, the funds in the account shall be payable to the estate of the individual; provided that if the account was held jointly by the decedent and a spouse of the decedent, the account shall terminate and be paid to the surviving spouse; or, if the surviving spouse so elects, the spouse may continue the account as an individual housing account. Upon the total disability of an individual for whose benefit an individual housing account has been established, the individual or the individual's authorized representative may elect to continue the account or terminate the account and be paid the assets; provided that if the account was held jointly by a totally disabled person and a spouse of that person, then the spouse or an authorized representative may elect to continue the account or terminate the account and be paid the assets."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2025.
Report Title:
Individual Housing Account; Pre-tax Savings
Description:
Increases the maximum annual deduction for contributions to, and maximum account levels for, individual housing accounts. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
286 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to the individual housing account program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents. As the cost of housing continues to rise, the State must assist residents in finding methods of increasing the availability of homeownership. Saving for a down-payment on a home loan continues to be a barrier for many Hawaii residents with few programs available to assist in this endeavor.
Contributions to the first-time home buyer savings account will reduce taxable income. This incentivizes first time home ownership through saving for a down payment and closing costs. Accordingly, the purpose of this Act is to update the Individual Housing Accounts statute by increasing the contribution levels, and maximum account levels, to reflect current housing prices more accurately.
SECTION 2. Section 235-5.5, Hawaii Revised Statutes, is amended to read as follows:
"§235-5.5 Individual housing
accounts. (a) There shall be allowed as a deduction from
gross income the amount, not to exceed [$5,000] $20,000, paid in
cash during the taxable year by an individual taxpayer to an individual housing
account established for the individual's benefit to provide funding for the
purchase of the individual's first principal residence. A deduction not to exceed [$10,000] $40,000
shall be allowed for a married couple filing a joint return. No deduction shall be allowed on any amounts
distributed less than three hundred sixty-five days from the date on which a
contribution is made to the account. Any
deduction claimed for a previous taxable year for amounts distributed less than
three hundred sixty-five days from the date on which a contribution was made
shall be disallowed and the amount deducted shall be included in the previous
taxable year's gross income and the tax reassessed. The interest paid or accrued within the
taxable year on the account shall not be included in the individual's gross
income. For purposes of this section,
the term "first principal residence" means a residential property
purchased with the payment or distribution from the individual housing account
which shall be owned and occupied as the only home by an individual who did not
have any interest in, individually, or whose spouse did not have any interest
in, if the individual is married, a residential property within the last five
years of opening the individual housing account.
In the case of a married couple
filing separate returns, the sum of the deductions allowable to each of them
for the taxable year shall not exceed [$5,000] $20,000, or [$10,000]
$40,000 for a joint return, for amounts paid in cash, excluding interest
paid or accrued thereon.
The amounts paid in cash allowable
as a deduction under this section to an individual for all taxable years shall
not exceed [$25,000] $200,000, excluding interest paid or
accrued. In the case of married
individuals having separate individual housing accounts, the sum of the
separate accounts and the deduction under this section shall not exceed [$25,000]
$200,000, excluding interest paid or accrued thereon.
(b) For purposes of this section, the term "individual housing account" means a trust created or organized in Hawaii for the exclusive benefit of an individual, or, in the case of a married individual, for the exclusive benefit of the individual and spouse jointly, but only if the written governing instrument creating the trust meets the following requirements:
(1) Contributions
shall not be accepted for the taxable year in excess of [$5,000] $20,000
(or [$10,000] $40,000 in the case of a joint return) or in excess
of [$25,000] $200,000 for all taxable years, exclusive of
interest paid or accrued;
(2) The trustee is a bank, a savings and loan association, a credit union, or a depository financial services loan company, chartered, licensed, or supervised under federal or state law, whose accounts are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or any agency of this State or any federal agency established for the purpose of insuring accounts in these financial institutions. The financial institution must actively make residential real estate mortgage loans in Hawaii;
(3) The assets of the trust shall be invested only in fully insured savings or time deposits. Funds held in the trust may be commingled for purposes of investment, but individual records shall be maintained by the trustee for each individual housing account holder that show all transactions in detail;
(4) The entire interest of an individual or married couple for whose benefit the trust is maintained shall be distributed to the individual or couple not later than one hundred twenty months after the date on which the first contribution is made to the trust;
(5) Except as provided in subsection (g), the trustee shall not distribute the funds in the account unless the trustee:
(A) Verifies that the money is to be used for the purchase of a first principal residence located in Hawaii, and provides that the instrument of payment is payable to the mortgagor, construction contractor, or other vendor of the property purchased; or
(B) Withholds an amount equal to ten per cent of the amount withdrawn from the account and remits this amount to the director within ten days after the date of the withdrawal. The amount withheld shall be applied to the liability of the taxpayer under subsections (c) and (e); and
(6) If any amounts are distributed before the expiration of three hundred sixty-five days from the date on which a contribution is made to the account, the trustee shall so notify in writing the taxpayer and the director. If the trustee makes the verification required in paragraph (5)(A), then the department shall disallow the deduction under subsection (a) and subsections (c), (e), and (f) shall not apply to that amount. If the trustee withholds an amount under paragraph (5)(B), then the department shall disallow the deduction under subsection (a) and subsection (e) shall apply, but subsection (c) shall not apply.
(c) Any contributions paid or distributed out of an individual housing account shall be included in gross income by the individual for whose benefit the account was established for the taxable year in which the payment or distribution is received, unless the amount is used exclusively in connection with the purchase of the first principal residence in Hawaii for the individual for whose benefit the account was established.
(d) The transfer of an individual's interest in an individual housing account to a spouse under a dissolution of marriage decree or under a written instrument incident to a dissolution of marriage shall not be considered a taxable transfer made by the individual, and the interest, at the time of the transfer, shall be treated as part of an individual housing account of the transferee, and not of the transferor. After the transfer, the account shall be treated, for purposes of this section, as maintained for the benefit of the transferee.
(e) If a distribution from an individual housing account to an individual for whose benefit the account was established is made and not used in connection with the purchase of the first principal residence in Hawaii for the individual, the tax liability of the individual under this chapter for the taxable year in which the distribution is received shall be increased by an amount equal to ten per cent of the amount of the distribution which is includable in the individual's gross income for the taxable year.
If, during any taxable year, the individual uses the account or any portion thereof as security for a loan, the portion so used shall be treated as if it had been distributed to that individual.
(f)
If the individual for whose benefit the individual housing account was
established purchases a residential property in Hawaii with the distribution
from the individual housing account[:
(1) Before January
1, 1990, and if the individual sells in any manner or method or by use of any
instrument conveying or transferring the residential property, the gross income
of the individual under this chapter for the taxable year in which the
residential property is sold, conveyed, or transferred, whichever is
applicable, shall include an amount equal to the amount of the distribution
from the individual housing account, and in addition, the gross income of the
individual shall be increased by an amount equal to ten per cent of the total
distribution from the individual housing account; or
(2) After December
31, 1989, ]the individual shall report one-tenth of the total distribution
from the individual housing account used to purchase the residential property
as gross income in the taxable year in which the distribution is completed and
in each taxable year thereafter until all of the distribution has been included
in the individual's gross income at the end of the tenth taxable year after the
purchase of the residential property. If
the individual sells in any manner or method or by use of any instrument
conveying or transferring the residential property, the gross income of the
individual under this chapter for the taxable year in which the residential
property is sold, conveyed, or transferred, whichever is applicable, shall
include an amount equal to the amount of the distribution from the individual
housing account not previously reported as gross income, and in addition, the
tax liability of the individual shall be increased by an amount equal to ten
per cent of the total distribution from the individual housing account. If the individual sells the residential
property in any manner as provided in this paragraph after all of the
distribution has been included in the individual's gross income at the end of
the tenth taxable year after the purchase of the residential property, the tax
liability of the individual shall not be increased by an amount equal to ten
per cent of the total distribution from the individual housing account.
[An individual who purchased a residential
property in Hawaii with the distribution from an individual housing account
before January 1, 1990, who is subject to paragraph (1) may elect to report as
provided in paragraph (2). The election
shall be made before January 1, 1991. If
the individual makes the election, the individual shall report one-tenth of the
total distribution from the individual housing account as gross income in the
taxable year in which the election occurs and in each taxable year thereafter
until all of the distribution has been included in gross income as provided by
paragraph (2). If the individual making
the election sells the residential property in any manner as provided in
paragraph (2), then the individual shall include as income the amount of the
distribution not previously reported as income and increase the individual's
tax liability as provided in the second sentence of paragraph (2), except when
the third sentence of paragraph (2) applies.
In the alternative, any
individual subject to paragraph (2) who established the individual housing
account before January 1, 1990, may elect within one year after the date of
purchase, to be subject to paragraph (1).]
(g) No tax liability shall be imposed under this section if:
(1) The payment or distribution is attributable to the individual dying or becoming totally disabled; or
(2) Residential property subject to subsection (f) is transferred by will or by operation of law or sold due to the death or total disability of an individual or individual's spouse,
subject to the following:
An individual shall not be
considered to be totally disabled unless proof is furnished of the total
disability [in the form and manner as the director may require] as
defined in §235-1.
Upon the death of an individual for whose benefit an individual housing account has been established, the funds in the account shall be payable to the estate of the individual; provided that if the account was held jointly by the decedent and a spouse of the decedent, the account shall terminate and be paid to the surviving spouse; or, if the surviving spouse so elects, the spouse may continue the account as an individual housing account. Upon the total disability of an individual for whose benefit an individual housing account has been established, the individual or the individual's authorized representative may elect to continue the account or terminate the account and be paid the assets; provided that if the account was held jointly by a totally disabled person and a spouse of that person, then the spouse or an authorized representative may elect to continue the account or terminate the account and be paid the assets.
(h) If the individual for whose benefit the individual housing account was established subsequently marries a person who has or has had any interest in residential property, the individual's housing account shall be terminated, the funds therein shall be distributed to the individual, and the amount of the funds shall be includable in the individual's gross income for the taxable year in which such marriage took place; provided that the tax liability defined under subsection (f) shall not be imposed.
(i) The trustee of an individual housing account shall make reports regarding the account to the director and to the individual for whom the account is maintained with respect to contributions, distributions, and other matters as the director may require under rules. The reports shall be filed at a time and in a manner as may be required by rules adopted under chapter 91. A person who fails to file a required report shall be subject to a penalty of $10 to be paid to the director for each instance of failure to file."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2025.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Individual Housing Account; Pre-tax Savings; Minority Caucus Package
Description:
Updates the Individual Housing Account statute to reflect the current cost of housing down-payments more accurately.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
Date
|
Status
|
|---|---|
| Apr 2, 2026 | Received notice of the discharge of all House Conferees (Hse. Com. No. 457). |
| Apr 1, 2026 | House Conferee(s) discharged. |
| Mar 20, 2026 | Received notice of all Senate conferees being discharged (Sen. Com. No. 409). |
| Mar 20, 2026 | Senate Conferee(s) discharged. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 4:30 PM; Conference Room 225. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 3:30 PM; Conference Room 016. |
| Apr 24, 2025 | Bill scheduled for Conference Committee Meeting on Friday, 04-25-25 10:15AM in conference room 224. |
| Apr 21, 2025 | Received notice of Senate conferees (Sen. Com. No. 850). |
| Apr 21, 2025 | Senate Conferees Appointed: Chang Chair; Hashimoto Co-Chair; Fevella. |
| Apr 21, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 755). |
| Apr 17, 2025 | House Conferees Appointed: Evslin, Ilagan, Miyake Co-Chairs; Alcos, Matsumoto. |
| Apr 17, 2025 | Re-referred to HSG, ECD, FIN, referral sheet 33 |
| Apr 11, 2025 | Received notice of disagreement (Hse. Com. No. 704). |
| Apr 10, 2025 | House disagrees with Senate amendment (s). |
| Apr 8, 2025 | Returned from Senate (Sen. Com. No. 613) in amended form (SD 1). |
| Apr 8, 2025 | Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 4, 2025 | One Day Notice 04-08-25. |
| Apr 4, 2025 | Reported from WAM (Stand. Com. Rep. No. 1783) with recommendation of passage on Third Reading. |
| Apr 2, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 27, 2025 | The committee(s) on WAM will hold a public decision making on 04-02-25 10:01AM; Conference Room 211 & Videoconference. |
| Mar 20, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Mar 20, 2025 | Reported from HOU (Stand. Com. Rep. No. 1181) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Mar 13, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Mar 10, 2025 | The committee(s) on HOU has scheduled a public hearing on 03-13-25 1:25PM; Conference Room 225 & Videoconference. |
| Mar 6, 2025 | Referred to HOU, WAM. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 206). |
| Mar 4, 2025 | Passed Third Reading as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate. |
| Feb 28, 2025 | Forty-eight (48) hours notice Tuesday, 03-04-25. |
| Feb 28, 2025 | Reported from FIN (Stand. Com. Rep. No. 1036) as amended in HD 2, recommending passage on Third Reading. |
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kitagawa, Ward. |
| Feb 21, 2025 | Bill scheduled to be heard by FIN on Tuesday, 02-25-25 10:00AM in House conference room 308 VIA VIDEOCONFERENCE. |
| Feb 19, 2025 | Re-referred to HSG, FIN, referral sheet 16 |
| Feb 4, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kong, Ward excused (3). |
| Feb 4, 2025 | Reported from HSG (Stand. Com. Rep. No. 134) as amended in HD 1, recommending passage on Second Reading and referral to ECD. |
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Cochran. |
| Jan 27, 2025 | Bill scheduled to be heard by HSG on Wednesday, 01-29-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Jan 21, 2025 | Referred to HSG, ECD, FIN, referral sheet 1 |
| Jan 17, 2025 | Introduced and Pass First Reading. |
| Jan 16, 2025 | Pending introduction. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 8, 2025 | Third Reading | Senate Floor |
Passed |
|
| Apr 2, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Ways and Means |
Passed |
|
| Mar 13, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Housing |
Passed |
|
| Mar 4, 2025 | Third Reading | House Floor |
Passed |
|
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
|
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Maui Chamber of Commerce | *** Support | Apr 2, 2025 |
STAND. COM. REP. NO. 1783
Honolulu, Hawaii
RE: H.B. No. 286
H.D. 2
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 286, H.D. 2, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM,"
begs leave to report as follows:
The purpose and intent of this measure is to address the affordable housing crisis in the State.
More specifically, this measure increases the maximum annual deduction for contributions into, and maximum account levels for, individual housing accounts, to reflect current housing prices more accurately.
Your Committee received written comments in support of this measure from the Maui Chamber of Commerce and six individuals.
Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents. Your Committee also finds that, as the cost of housing continues to rise, saving for a down payment on a home loan continues to be a barrier for many Hawaii residents. Accordingly, your Committee finds that increasing the maximum annual deduction and maximum allowable balance for individual housing accounts will incentivize first-time home ownership by allowing greater savings for a down payment and closing costs.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 286, H.D. 2, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
|
|
|
________________________________ DONOVAN M. DELA CRUZ, Chair |
|
|
|
|
STAND. COM. REP. NO. 1181
Honolulu, Hawaii
RE: H.B. No. 286
H.D. 2
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Housing, to which was referred H.B. No. 286, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM,"
begs leave to report as follows:
The purpose and intent of this measure is to increase the maximum annual deduction for contributions to, and maximum account levels for, individual housing accounts.
Your Committee received testimony in support of this measure from the Maui Chamber of Commerce and six individuals.
Your Committee received testimony in opposition to this measure from one individual.
Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that housing security and affordability is of paramount importance to the State. Presently, individuals can contribute up to $5,000 per year to an Individual Housing Account, which enables the individuals to deduct from their account to help save up a down payment to purchase a home. However, as current housing prices have significantly increased within the last ten years, increasing the cap for contributions will better reflect the reality of the current housing market and better assist prospective homeowners to achieve homeownership.
Your Committee notes the testimony of the Department of Taxation that more individuals use a Roth individual retirement account (IRA) than an individual housing account to save for a future down payment on a home. A Roth IRA is an account funded with after-tax dollars that can be used to purchase a first home, fund education, or save for retirement. Presently, the maximum annual contribution for a Roth IRA is $7,000. However, the maximum contribution for an individual housing account is currently $5,000, making Roth IRAs a tax-favored option. Therefore, your Committee respectfully requests subsequent Committees who choose to deliberate on this measure to consider inserting a cap of $10,000 for single individuals, and $20,000 for married individuals filing jointly, to make individual housing accounts more beneficial for achieving homeownership.
Your Committee has amended this measure by:
(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 286, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 286, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Housing,
|
|
|
________________________________ STANLEY CHANG, Chair |
STAND. COM. REP. NO. 1036
Honolulu, Hawaii
, 2025
RE: H.B. No. 286
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 286, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM,"
begs leave to report as follows:
Your Committee has amended this measure by changing the maximum annual deduction amount for contributions to, and maximum account level amount for, individual housing accounts to unspecified amounts.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 286, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 286, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
|
|
|
____________________________ KYLE T. YAMASHITA, Chair |
|
|
|
|
STAND. COM. REP. NO. 134
Honolulu, Hawaii
, 2025
RE: H.B. No. 286
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Housing, to which was referred H.B. No. 286 entitled:
"A BILL FOR AN ACT RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM,"
begs leave to report as follows:
Your Committee finds that as the cost of housing increases, the State must continue to assist residents in finding methods of increasing options for homeownership. Saving for a down payment on a home loan continues to be a barrier for many Hawaii residents, as there are limited numbers of programs available to assist in this endeavor. This measure increases the contribution levels and maximum account levels for individual housing accounts to better reflect current housing prices and further encourage prospective first-time homeowners to save for a down payment and closing costs.
Your Committee has amended this measure by:
(1) Changing the effective date to July 1, 3000, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 286, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 286, H.D. 1, and be referred to your Committee on Economic Development & Technology.
Respectfully submitted on behalf of the members of the Committee on Housing,
|
|
|
____________________________ LUKE A. EVSLIN, Chair |
|
|
|
|
|
Date
|
Testimony PDF
|
|---|---|
| Apr 2, 2025 | HB286_SD1_TESTIMONY_WAM_04-02-25_.PDF |
| Mar 13, 2025 | HB286_HD2_TESTIMONY_HOU_03-13-25_.PDF |
| Feb 25, 2025 | HB286_HD1_TESTIMONY_FIN_02-25-25_.PDF |
| Jan 29, 2025 | HB286_TESTIMONY_HSG_01-29-25_.PDF |
Bill Author
Bill Co-Author(s):
