Homebuyer Savings Act

Homebuyer Savings Act - Amends the Internal Revenue Code to allow an income tax deduction of contributions (cash or securities) to a savings account established for the benefit of the taxpayer (or the taxpayer and spouse) for the exclusive purpose of purchasing the taxpayer's first principal residence. Limits the maximum annual deduction to $5,000. Permits deductions only during a five-year period. Disallows the deduction to taxpayers having adjusted gross income exceeding $50,000. Provides that no individual may be a beneficiary of more than one account.

Excludes account distributions from gross income if they are used exclusively for the purchase of a first principal residence.

Imposes penalties in the form of additional tax when account funds or distributions are used for other than the legitimate purposes for which the account was established.

Requires the account trustee to report to the Secretary of the Treasury and to the account's beneficiary on the maintenance of the account. Imposes a penalty for failure to file required reports.