HB 286 Hawaii House · 2025 Regular Session

RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM.

Summary

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)

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

House Passage

Mar 2025

Senate Passage

Apr 2025

Governor

Introduced Jan 16, 2025 Last action Apr 25, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

HB286_HD2 → HB286_SD1 · 6 edits

MODERATE

This bill updates Hawaii's Individual Housing Account Program to increase the maximum annual tax deduction and account limits to better reflect current housing prices. It also adds new requirements for how funds can be withdrawn, including verification that money is used for a first home purchase in Hawaii and a 10% withholding for potential tax penalties. The bill clarifies rules for married couples and adds exceptions for death or disability.

Scope change

The bill expands the program's financial limits and adds stricter withdrawal verification requirements while maintaining the core purpose of helping residents save for a first home.

FISCAL

Increased the maximum annual tax deduction and account contribution limits to reflect current housing costs, replacing placeholder amounts with updated figures.

REQUIREMENT

Added new withdrawal requirements requiring trustees to verify funds are used for a first principal residence in Hawaii and to withhold 10% of withdrawals for potential tax liability.

Added requirement that trust assets must be invested only in fully insured savings or time deposits, with detailed transaction records maintained.

Added a 120-month time limit for distributing funds from the account after the first contribution.

ENFORCEMENT

Clarified tax penalty rules for early withdrawals and added exceptions for death or total disability where no tax liability is imposed.

TIMELINE

Set the effective date for the Act as July 1, 2050, applying to taxable years beginning after December 31, 2025.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 25, 2025

Upper · Passed

Conference committee meeting to reconvene on 04-25-25 4:30 PM; Conference Room 225.

upper

Apr 25, 2025

Upper · Passed

Conference committee meeting to reconvene on 04-25-25 3:30 PM; Conference Room 016.

upper

Apr 24, 2025

Lower · Passed

Bill scheduled for Conference Committee Meeting on Friday, 04-25-25 10:15AM in conference room 224.

lower

Apr 17, 2025

Committee

Re-referred to HSG, ECD, FIN, referral sheet 33

lower

Apr 10, 2025

Amended

House disagrees with Senate amendment (s).

lower

Apr 8, 2025

Introduced

Returned from Senate (Sen. Com. No. 613) in amended form (SD 1).

lower

Apr 8, 2025

Upper · Passed

Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Apr 2, 2025

Upper · Passed

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.

upper

Mar 27, 2025

Upper · Passed

The committee(s) on WAM will hold a public decision making on 04-02-25 10:01AM; Conference Room 211 & Videoconference.

upper

Mar 20, 2025

Committee

Reported from HOU (Stand. Com. Rep. No. 1181) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Mar 13, 2025

Upper · Passed

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.

upper

Mar 10, 2025

Upper · Passed

The committee(s) on HOU has scheduled a public hearing on 03-13-25 1:25PM; Conference Room 225 & Videoconference.

upper

Mar 6, 2025

Committee

Referred to HOU, WAM.

upper

Mar 6, 2025

Introduced

Received from House (Hse. Com. No. 206).

upper

Mar 4, 2025

Lower · Passed

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.

lower

Feb 25, 2025

Lower · Passed

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.

lower

Feb 19, 2025

Committee

Re-referred to HSG, FIN, referral sheet 16

lower

Feb 4, 2025

Committee

Reported from HSG (Stand. Com. Rep. No. 134) as amended in HD 1, recommending passage on Second Reading and referral to ECD.

lower

Jan 29, 2025

Lower · Passed

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.

lower

Jan 21, 2025

Committee

Referred to HSG, ECD, FIN, referral sheet 1

lower

Jan 17, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 16, 2025

Introduced

Pending introduction.

lower

8 primary · 0 co-sponsors