Hawaii Individual Housing Account Deduction Increases Starting 2027
Summary
Hawaii SB2552 modifies the Individual Housing Account Program by increasing the maximum annual and total allowable deductions for contributions to individual housing accounts for income tax purposes, effective for taxable years beginning January 1, 2027. The bill also removes obsolete provisions relating to first-time home purchases made before January 1, 1990. Hawaii residents with individual housing accounts and tax professionals should prepare for the new, higher contribution and deduction limits.
What changed
SB2552 amends Hawaii's Individual Housing Account Program by significantly raising the maximum annual and aggregate deduction limits for contributions to these accounts for income tax purposes. The bill takes effect for taxable years beginning January 1, 2027, and also eliminates outdated provisions that applied to first-time home purchases made before 1990.
Hawaii residents who maintain or plan to open individual housing accounts, along with tax professionals advising them, should update their financial projections and tax planning strategies to account for the new, higher contribution and deduction thresholds. Financial institutions offering these accounts should revise product information and disclosures accordingly.
What to do next
- Review individual housing account contribution strategies for 2027
- Update tax planning projections with new deduction limits
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Hawaii / SB2552 Passed SB2552 Senate Bill Passed 2026-03-10
Relating To The Individual Housing Account Program.
For taxable years beginning 1/1/2027, (1) increases the maximum annual and total allowable deduction for contributions to individual housing accounts for income tax deductions and (2) increases the maximum allowable contributions for individual housing accounts to qualify for the income tax deductions. Repeals outdated language applicable to first-time home purchases made before 1/1/1990, by persons with an individual housing account. Effective 7/1/3000. (HD1)
Bill Details
State Hawaii
Session 2026 Regular Session
Chamber Senate
Official Source www.capitol.hawaii.gov/session/measure_ind...
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Sponsors
Troy Hashimoto (Sen - D) Stanley Chang (Sen - D) Kurt Fevella (Sen - R) Michelle Kidani (Sen - D) Lorraine Inouye (Sen - D)
Action History
2026-04-07 H The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Gedeon, Reyes Oda; Ayes with reservations: Representative(s) Alcos; 0 Noes: none; and 0 Excused: none. 2026-04-02 H Bill scheduled for decision making on Tuesday, 04-07-26 10:10AM in conference room 308 VIA VIDEOCONFERENCE. 2026-04-02 H The committee(s) on FIN recommend(s) that the measure be deferred until 04-07-26. 2026-03-31 H Bill scheduled to be heard by FIN on Thursday, 04-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. 2026-03-24 H Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Garrett, Quinlan excused (2). 2026-03-24 H Reported from HSG (Stand. Com. Rep. No. 1386-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN. 2026-03-20 H The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kitagawa, La Chica, Cochran, Muraoka, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Kila. 2026-03-17 H Bill scheduled to be heard by HSG on Friday, 03-20-26 9:00AM in House conference room 430 VIA VIDEOCONFERENCE. 2026-03-12 H Referred to HSG, FIN, referral sheet 17 2026-03-12 H Pass First Reading 2026-03-10 H Received from Senate (Sen. Com. No. 259) in amended form (SD 1). 2026-03-10 S Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. 2026-03-06 S One Day Notice 03-10-26. 2026-03-06 S Reported from WAM (Stand. Com. Rep. No. 2906) with recommendation of passage on Third Reading. 2026-03-03 S The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. 2026-02-27 S The committee(s) on WAM will hold a public decision making on 03-03-26 10:17AM; Conference Room 211 & Videoconference. 2026-02-19 S Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. 2026-02-19 S Reported from HOU (Stand. Com. Rep. No. 2402) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. 2026-02-10 S The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Elefante, Rhoads, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. 2026-02-05 S The committee(s) on HOU deferred the measure until 02-10-26 1:00PM; Conference Room 225 & Videoconference. 2026-02-02 S The committee(s) on HOU has scheduled a public hearing on 02-05-26 1:01PM; Conference Room 225 & Videoconference. 2026-01-28 S Referred to HOU, WAM. 2026-01-23 S Passed First Reading. 2026-01-23 S Introduced.
Votes
2026-02-10 Senate Housing: Passed, With Amendments Yea: 5 Nay: 0 2026-03-03 Senate Ways and Means: Passed, Unamended Yea: 12 Nay: 0
Committee Referrals
2026-01-28 S Housing 2026-02-19 S Ways and Means 2026-03-12 H Housing 2026-03-24 H Finance
Bill Text Versions
2026-01-22 Introduced 2026-02-18 Amended 2026-03-23 Amended
Subjects
Individual Housing Accounts Pre-tax Savings Maximum Annual Deduction Increase Income Tax Maximum Total Deduction Legislative data powered by LegiScan (CC BY 4.0)
Named provisions
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