A bill to stimulate new residential construction by amending the Internal Revenue Code of 1954 to allow a deduction for individuals who deposit savings in mortgage lending accounts.

Allows as a deduction under the Internal Revenue Code amounts not to exceed $2000 paid by an individual during the taxable year into a qualified mortgage lending account.

Excludes from gross income interest and dividends received by the taxpayer from any mortgage lending account up to a maximum of $120 a year.

Terminates such deduction with respect to deposits in mortgage lending accounts made after December 31, 1977.