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:

The purpose 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 numerous individuals. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

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