Individual Housing Account Act of 1981

Individual Housing Account Act of 1981 - Amends the Internal Revenue Code to allow an individual who has never owned a principal residence an income tax credit for 20 percent of the cash contributions made during the taxable year to an individual housing account. Limits the amount of such credit to $1,000 for any taxable year and $3,000 during a lifetime.

Sets forth requirements for the establishment of an individual housing account. Imposes penalties for distributions made from an individual housing account which are not used in connection with the purchase of a principal residence.

Exempts interest earned on an individual housing account from income taxation. Requires the trustee of an individual hoising account to make such reports regarding the maintenance of an individual housing account as the Secretary of the Treasury may require. Prohibits contributions to an individual housing account in excess of prescribed limits and imposes a tax on such excess contributions equal to the tax on excess contributions to an individual retirement account.