STAND. COM. REP. NO. 2906

Honolulu, Hawaii

RE: S.B. No. 2552

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2552, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to assist first-time homebuyers in the State.

More specifically, this measure increases the maximum annual deduction for contributions into, and maximum account levels for, individual housing accounts, to more accurately reflect current housing prices.

Your Committee received written comments in support of this measure from the Office of Hawaiian Affairs, a member of the Maui County Council, Chamber of Commerce Hawaii, Hawaii Association of REALTORS, Holomua Collaborative, Housing Hawaii's Future, and Mortgage Bankers Association of Hawaii.

Your Committee received written comments on this measure from the Department of Taxation.

Your Committee finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and a critical issue for many Hawaii residents. Your Committee also finds that saving for a downpayment on a home loan continues to be a barrier for many Hawaii residents, with few programs available to assist in this endeavor. Your Committee notes that contributions to an individual housing account, under section 235-5.5, Hawaii Revised Statutes, reduces taxable income, which incentivizes first-time homeownership through saving for a downpayment and closing costs. The changes made by this measure will further support homebuyers and help to address the State's affordable housing challenges.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2552, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair