Rep. Nancy Mace Introduces Bill To Tackle Housing Crisis And Make Homeownership Affordable For South Carolinians
New Legislation Eliminates Capital Gains Tax Cap on Home Sales, Helps First-Time Homebuyers Enter Market
WASHINGTON, D.C. (Feb. 5, 2026) – Today, Congresswoman Nancy Mace introduced the Making Homeownership Affordable Again Act to completely eliminate capital gains taxes on the sale of primary residences and any home sold to a first-time homebuyer – expanding opportunities for first-time homebuyers and helping more families achieve the American dream of homeownership.
South Carolina's explosive growth has created a housing affordability crisis. In 2025, South Carolina recorded the highest population growth rate in the nation at 1.5 percent, adding nearly 80,000 new residents in a single year. Home prices have surged far faster than wages, pushing young families out of the housing market while longtime homeowners face massive tax burdens simply for selling homes they’ve owned for decades.
In Charleston County, the median home price reached $715,000 in 2025. Families who purchased modest homes decades ago now face enormous capital gains taxes when they sell, because outdated caps on home sale capital gains tax exclusion.
Under current law, taxpayers can only exclude up to $250,000 (or $500,000 for joint filers) of the gain from selling their primary residence from capital gains taxes. These caps were set in 1997, and have not been increased to reflect the dramatic rise in home prices over the last 3 decades. This forces middle-class families and long-time homeowners to pay hefty taxes on the equity they’ve earned in their home, incentivizing them to hold on to the home regardless of their needs and restricting mobility within the housing market. It locks seniors and empty nesters who would look to downsize, into their homes.
“Every hardworking South Carolinian deserves a shot at homeownership, not just the wealthy elite,” said Congresswoman Mace. “Our tax code punishes families for building wealth. You work decades to pay off your home, and when you finally sell, Washington demands a cut. As the fastest-growing state in the country, longtime residents face massive tax bills simply because their neighborhoods became desirable. This bill puts a stop to it and helps young families achieve the American Dream of homeownership.”
The Making Homeownership Affordable Again Act:
- Removes the cap on home sale gain exclusions, completely eliminating capital gains taxes on the sale of a primary residence
- Incentivizes sales to first-time homebuyers by completely eliminating capital gains taxes on the sale of any home to a first-time homebuyer, regardless of whether it is the seller’s principal residence
By eliminating tax barriers to selling homes, the bill would incentivize home sales, unlocking much-needed housing supply in fast-growing communities across South Carolina, and creating more opportunities for young families looking to buy their first home. This bill will also ensure longtime homeowners can keep the equity they’ve built through responsible homeownership, rather than being forced to cut a check to the Federal government.
"Washington has made homeownership harder and more expensive at every turn, and this bill fixes it," added Mace. “Your home sale profits belong to you, not the IRS. Helping a young family buy their first home should be encouraged, not taxed. This is about letting South Carolina families keep what they've built and getting Washington's hands out of their pockets. It's time to make homeownership affordable again."
SEE BILL TEXT HERE:
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