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Committee advances bill to raise Individual Housing Account contribution limits to $10,000/$20,000
Summary
The Senate Committee on Housing passed HB 286 with amendments to raise the Individual Housing Account (IHA) maximum annual deduction to $10,000 for single filers and $20,000 for married filing jointly; DOTAX provided technical comments comparing the change to Roth IRA limits.
The Senate Committee on Housing voted to pass HB 286 with technical amendments and to further defer the bill’s effective date. The committee adopted language raising the maximum annual deduction and account limit for Individual Housing Accounts to $10,000 for single filers and $20,000 for married filing jointly, as noted in the committee report.
The Department of Taxation provided comments during the hearing. A Department of Taxation representative identified herself as Eliza and said the appropriate policy level is a legislative decision, but noted that the Roth IRA annual contribution limit is $7,000 and that a larger IHA limit would be needed to meaningfully affect first-home savings. The department also reported that fewer than 100 IHAs had been reported in its records to date.
The committee heard several written and oral supporters, including the Maui Chamber of Commerce and individual testifiers listed in the record. One named opponent, Susan Watus, was recorded in opposition in submitted testimony. The committee’s amendments were described as technical and non-substantive for clarity and consistency; the chair said the date would be further deferred in the committee report.
The chair’s recommendation to pass HB 286 with amendments was adopted. Chair Chang, Vice Chair Hashimoto, Sen. Aquino and Sen. Kanuha voted aye; Sen. Fevella was excused.
The committee advanced a revised IHA limit that lawmakers will consider as the measure proceeds through the legislative process.
