A bill to amend the Internal Revenue Code of 1954 to allow a deduction for contributions to saving accounts for use by first-time home buyers in purchasing a principal residence.

Amends the Internal Revenue Code to allow an income tax deduction for cash contributions to a savings account created or organized for the benefit of the taxpayer (or the taxpayer and spouse if married) for the exclusive purpose of purchasing the taxpayer's first principal residence. Limits the maximum annual deduction to $1,500 ($3,000 in the case of married individuals filing a joint return), with a maximum lifetime deduction of $15,000 ($30,000 in the case of married individuals filing a joint return). Excludes distributions from such account from gross income as long as they are used exclusively for the purchase of a first principal residence.

Imposes a ten percent surtax on distributions from an individual housing account which are not used for the purchase of a principal residence.