Congress·In Committee·S. 1919

Congress proposes tax credit to reward retail goods made with U.S.-grown cotton and tracked supply chains

Buying American Cotton Act of 2025

10 months ago·View on Congress.gov

Part of: Congress Proposes Tax Credits to Revitalize Domestic Cotton Manufacturing

⏸

Stalled

No legislative action in over 90 days.

Legislative Progress

Senate

House

President

Law

Key Points

Congress would create a business tax credit for the first sale of retail-ready products that contain U.S.-grown cotton.
To qualify, the cotton must be digitally tracked through the supply chain to prove it started in the United States and to prevent double-claiming.
The credit amount depends on how much U.S. cotton (by pounds) is in the product, a set percentage (24% or 18%), and an average cotton market price.
Products processed only in the U.S., or also in certain trade-partner countries, get a higher credit rate than products processed in other countries.
Companies could get an extra-boosted credit for using U.S.-made cotton yarn and especially U.S.-made cotton fabric; the credit would apply to sales starting Jan. 20, 2025.

TaxesTradeAgricultureSmall Business

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(2)

Union Member

Neutral

Housing Assistance

Neutral

Positive Impacts(3)

Small Business Owner

Helps

Farmer Rancher

Helps

Gig Worker

Helps

Milestones

2 milestones2 actions

May 22, 2025Senate

Read twice and referred to the Committee on Finance.

May 22, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

2025-01-20

If enacted, businesses can claim the credit for eligible cotton products sold on or after January 20, 2025

Some companies could file amended returns or adjust current-year filings to claim credits for past qualifying sales, if they can meet the tracing and certification rules.

Related News

8 articles

Oklahoma Farm Report·about 2 months ago

AMCOT Commends Bipartisan Support for the Buying American Cotton Act

Industry group AMCOT praises expanding bipartisan support for the Buying American Cotton Act, noting the Senate bill (S.1919) and a newly introduced House companion (H.R. 7230).

CR+

National Cotton Council (Cotton.org)·about 2 months ago

NCC Backs Buying American Cotton Act as Boost for Full U.S. Supply Chain

The National Cotton Council supports the Buying American Cotton Act and highlights its tax-credit incentives tied to traceability and U.S.-grown cotton, responding to House introduction of companion legislation.

Office of Rep. Greg Murphy·about 2 months ago

Murphy Introduces Legislation to Boost American Cotton Consumption

Rep. Greg Murphy and Rep. Terri Sewell announce House introduction of the Buying American Cotton Act, describing a tax credit intended to incentivize products made with American-grown cotton.