Mace brings forward legislation to create tax-free savings accounts for first-time homebuyers

A bill introduced in the U.S. House by Rep. Nancy Mace is designed to help first-time homebuyers set aside funds for qualified costs using tax-deductible savings accounts, as detailed by the U.S. Congress.

H.R.8221 was submitted on April 9, 2026, during the 119th Congress’ 2026 regular session. Below is a summary, referencing the official bill language, with clarifications provided for understanding.

This measure would authorize first-time homebuyer savings accounts governed by the Internal Revenue Code of 1986. Eligible individuals could deduct up to $10,000 each year for qualified expenses related to purchasing or building a main home. The bill identifies an “eligible individual” as someone who has not had an ownership stake in any residential property for at least three years. Contributions must be made with cash, and life insurance investments are not permitted within the accounts. Withdrawals used for permitted expenses would not be counted as gross income; other types of withdrawals could trigger tax penalties. These provisions would begin with taxable years starting after the bill becomes law.

Rep. Nancy Mace (Republican-SC-1st District) is the sole sponsor of this legislation.

Throughout the current session, Rep. Mace has put forward a total of 73 bills.

Congressional bills may originate in either the U.S. House of Representatives or the U.S. Senate, except revenue bills, which start in the House. After being introduced, bills are assigned to committees where they receive review, hearings, potential amendments, and debate, before proceeding to a vote in each chamber. If both chambers agree on an identical version, the measure goes to the president for signature or veto. Congress holds two-year terms, sequentially numbered and split into two sessions. Official legislative procedures and records are recorded by the U.S. Congress and available via Congress.gov.

Nancy Mace serves as a Representative from South Carolina and has been part of the One Hundred Seventeenth Congress and the two following terms since January 3, 2021. She previously served in the South Carolina state house of representatives from 2018 to 2020 and ran unsuccessfully for the U.S. Senate in 2014.

Mace earned a B.A. from The Citadel in 1999 and an M.S. from the University of Georgia in 2004. She also attended Trident Technical College and completed high school at Stratford High School in 1995.