CONFERENCE COMMITTEE REP. NO. 111-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2552

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2552, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) For taxable years beginning January 1, 2027:

(A) Increase the maximum annual and total allowable deduction for contributions to individual housing accounts for income tax deductions; and

(B) Increase the maximum allowable contributions for individual housing accounts to qualify for the income tax deductions; and

(2) Repeal outdated language applicable to first-time home purchases made before January 1, 1990, by persons with an individual housing account.

Your Committee on Conference finds that saving for a downpayment remains a significant challenge for many residents of the State, especially for first-time homebuyers. The Individual Housing Account (IHA) program was designed to help first-time homebuyers save for a downpayment on the purchase of a home using pre-tax dollars. However, the existing maximum annual deductions for the IHA program are insufficient due to increases in median home prices in the State. This measure increases the maximum annual deduction for the IHA program to help first-time homebuyers afford a downpayment.

Your Committee on Conference has amended this measure by:

(1) Inserting the following maximum annual deduction amounts for contributions and maximum account levels:

(A) $20,000 paid to an individual housing account for an individual taxpayer for each taxable year or for a married couple filing separate returns;

(B) $40,000 paid to an individual housing account for a married couple filing jointly for each taxable year; and

(C) $200,000 for the maximum allowable deduction for an individual for all taxable years; and

(2) Making it effective upon its approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2552, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2552, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ LUKE A. EVSLIN Co-Chair	____________________________ STANLEY CHANG Chair
____________________________ TYSON K. MIYAKE Co-Chair	____________________________ TROY N. HASHIMOTO Co-Chair