Buying American Cotton Act of 2025
Congress proposes tax credit to reward retail goods made with U.S.-grown cotton and tracked supply chains
Stalled
No legislative action in over 90 days.
Legislative Progress
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.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
8 articlesAMCOT 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).
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.
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.
Source Information
Document Type
Congressional Bill
Official Title
Buying American Cotton Act of 2025
Data Sources
Sponsor
Cosponsors
(12)Analysis generated by AI. Always verify with official sources.