Rep. Nancy Mace Introduces Bill To Help South Carolina First-Time Buyers Achieve Homeownership
New legislation gives first-time buyers a tax-advantaged path to owning a home
WASHINGTON, D.C. (Apr. 9, 2026) – Today, Congresswoman Nancy Mace (R-SC) introduced the First-Time Homebuyer Savings Act of 2026, legislation to help South Carolinians and Americans across the country break into the housing market by creating tax-advantaged accounts to make saving and buying a first home more achievable.
The bill would amend the Internal Revenue Code to establish First-Time Homebuyer Savings Accounts for first-time homebuyers. Eligible individuals would be able to contribute up to $10,000 annually in pre-tax funds. Money in the account could be invested and grow tax-free, and funds could be withdrawn tax-free when used for qualified homebuying expenses, including expenses related to buying their first home, building their first home, and any early homeownership expenses in their first 3 years of homeownership.
“Too many hardworking South Carolinians are being priced out of the American Dream of homeownership,” said Congresswoman Mace. “Our bill gives first-time buyers a real shot, helping them get their foot in the door, save smarter, and turn the dream of owning a home into a reality despite rising costs and inflation.”
Home prices in South Carolina’s First District have continued to grow over the past few years, making it harder than ever for first-time buyers to get a foot in the door. Average homes now cost $602,394 in Charleston County, $540,644 in Beaufort County, $369,366 in Berkeley County, and $346,269 in Dorchester County, putting homeownership out of reach for many South Carolina families. This bill gives working families a real opportunity to save, invest, plan, and finally make homeownership possible.
Under the First-Time Homebuyer Savings Act of 2026:
- Individuals who qualify as first-time homebuyers under the current tax code could create a First-Time Homebuyer Savings Account
- These individuals can contribute up to $10,000 annually in pre-tax funds to the account
- Funds in the accounts can be invested and grow tax-free
- Funds can be withdrawn tax-free when used for qualified homebuying expenses, including expenses associated with purchasing their first principal residence, building their first principal residence, and early homeownership expenses in the first three years of homeownership
- Three years after their home is acquired, the account is terminated and remaining funds in the account can be rolled over into an individual retirement account (IRA) or taken by the individual as a distribution
- Eligibility criteria would restrict individuals whose adjusted gross income is over $200,000 (or $400,000 for joint filers) from taking advantage of these accounts, ensuring the relief is targeted toward working-class Americans, and not the wealthy.
The President of the American Principles Project, Terry Schilling, provided the following statement in support of the legislation:
"First-Time Homebuyer Accounts are a vital first-step to solve this generational crisis. Washington’s failed policies have made housing unaffordable and forced families to rely on government programs instead of building wealth on their own terms. This bill puts parents back at the center of the housing market, rewards responsible saving, and strengthens the bedrock of the American family where it matters most — in the home. The First-Time Homebuyer Savings Act sends a clear message: Homes are for families, not prospectors and Wall Street sharks. APP is proud to partner with Rep. Mace to deliver for young families who create the communities that make America great," said Schilling.
Rep. Mace’s legislation is part of a broader effort to tackle the affordability crisis while giving Americans the tools to build financial security.
“At a time when young people and families feel locked out of the housing market, Congress should be making it easier, not harder, to achieve the American Dream,” Mace continued. “This is a commonsense solution putting savings and opportunity back in the hands of hardworking Americans.”
SEE BILL TEXT BELOW:
###