First Home Ownership Act of 1979

First-Home Ownership Act of 1979 - Amends the Internal Revenue Code to allow individuals who have never owned a home an income tax credit for certain amounts contributed to an individual housing account. Limits the cash amount of such credit to $2,500 for any taxable year, and $10,000 during the taxpayer's lifetime. Requires contributions made to an individual housing account to remain in such account for at least 12 months.

Establishes a schedule of percentages, graduated downward according to adjusted gross income, for purposes of determining the amount of contribution to an individual housing account which may be credited against income tax liability.

Exempts individual housing account trusts from income taxation. Imposes tax penalties on amounts distributed from an individual housing account for purposes other than the purchase of a principal residence.

Requires the trustee of an individual housing account to report to the Internal Revenue Service with respect to contributions to and distributions from such account. Imposes fines for failure to make such report.