A bill to amend the Internal Revenue Code of 1954 to allow individuals a deduction for amounts paid or incurred for repairs or improvements of, or additions to, their principal residences.

Amends the Internal Revenue Code to allow the taxpayer a deduction for up to $500 of the expenses paid or incurred during any taxable year commencing before 1980 for improvements and repairs to his principal residence. Allows the taxpayer to amortize up to $5,000 of the expenses incurred between 1976 and 1980 for an addition to his principal residence. Provides for the inclusion of such deductions in the taxpayer's gross income where the taxpayer ceases to use the structure as his principal residence before residing there two years.