To amend the Internal Revenue Code of 1986 to allow a deduction for amounts contributed to home savings accounts, and for other purposes.

This bill creates a new type of tax-advantaged savings account called a "home savings account" designed to help individuals save for housing expenses. It allows taxpayers to deduct up to $10,000 annually from their income for cash contributions made to these accounts, with a higher limit of $20,000 for married couples filing jointly. Money withdrawn from the account is tax-free only if it is used to buy a principal residence or pay down the mortgage on that home; otherwise, the withdrawal is taxed as income and subject to a 20% penalty. The legislation also permits a one-time transfer of funds from an existing retirement plan into a new home savings account and includes specific rules for handling excess contributions, account transfers due to divorce, and inheritance after the account holder's death.