A bill to amend the Internal Revenue Code of 1954 to allow an individual a deduction for certain contributions to an account the proceeds from which are used to purchase a principal residence for such individual.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow individuals an income tax deduction (from gross income) of up to $3,500 annually and $15,000 in a lifetime for cash contributions to an individual housing account. Makes such accounts tax-exempt and defers taxation on distributions from such accounts, which are used exclusively for the purchase of a principal residence for the distributee, until the distributee sells or exchanges such residence. Sets forth the tax treatment of accounts which lose tax-exempt status due to the participation of an account holder in a prohibited transaction, the pledging of an account as a security for a loan, or the use of an account for a purpose other than the purchase of a principal residence.…