CA AB1979

Excludes from gross income any earnings on contributions to homeownership savings accounts for taxable years beginning January 1, 2018 through December 31, 2022.

Requires homeownership savings accounts to be established as trusts with cash contributions only, designated for qualified homeownership expenses of a first-time homebuyer.

Limits account balance to 20 percent of the state's median home value as determined annually by the Department of Housing and Community Development.

Restricts eligibility to individuals who have never owned a principal residence and whose gross income does not exceed 120 percent of area median income.

Requires accounts to be closed upon completion of a principal residence purchase; section repeals December 1, 2023.