Individual Housing Act of 1979

Individual Housing Act of 1979 - Amends the Internal Revenue Code to allow individuals an income tax deduction of up to $3,000 annually and $15,000 in a lifetime for cash contributions to an individual housing account (IHA) established to finance the purchase of a principal residence for the taxpayer.

Exempts IHA's from income taxation. Excludes from gross income distributions to a taxpayer from an individual housing account used to purchase a principal residence.

Allows an income tax deduction for sales taxes on items used in the construction of new homes. Allows a refundable income tax credit for the amount of interest income which a taxpayer loses on amounts paid as real property tax prepayments. Limits the amount of such credit to $200 for the taxable year.