CA AB1736

Allows a tax deduction for contributions to homeownership savings accounts for taxable years beginning January 1, 2017 and before January 1, 2019, with maximum deductions of $20,000 for joint filers and $10,000 for other filers.

Excludes from gross income any earnings accrued in a homeownership savings account, subject to the same conditions as individual retirement accounts under federal law.

Permits tax-free withdrawals from homeownership savings accounts to pay for qualified homeownership expenses (down payments, closing costs) for purchase of a principal residence in California.

Restricts eligibility to first-time homebuyers with gross income at or below 80 percent of area median income in their county of residence.

Becomes operative only upon budget appropriation of funds to the Franchise Tax Board for administration and automatically repeals December 1, 2019.