Buying American Cotton Act of 2026

This bill would create a federal business tax credit for companies that sell finished, ready-for-retail products made with cotton grown in the United States. The credit equals the pounds of U.S. cotton in the product, times a percentage, times an average market price for cotton over the prior three years. The percentage is 24 percent if the cotton was processed only in the U.S. or in countries with U.S. trade agreements or preference programs, and 18 percent if any processing happened elsewhere. The credit is multiplied by 1.6 for U.S.-made cotton yarn and by 6.5 for U.S.-made cotton fabric, and the cotton must be digitally traced through the supply chain. The credit could be transferred to another taxpayer and would apply to products sold after the law is enacted.

Full text and official record on Congress.gov

Sponsors

• Gregory F. Murphy Republican sponsor
• 101 cosponsors