Buying American Cotton Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The Buying American Cotton Act of 2025 aims to encourage the use of domestically grown cotton and cotton-based products by establishing a domestic cotton consumption credit. This credit would be calculated based on the volume of qualified cotton used in eligible articles, the applicable percentage (varying based on processing location), and the cotton market price. The bill establishes requirements for tracing the origin of cotton through a digital supply chain system and defines key terms like ‘eligible article’ and ‘qualified cotton.’ It also provides increased credit amounts for cotton yarn and fabric.
Key provisions
- Establishes a domestic cotton consumption credit for taxpayers.
- The credit is calculated based on cotton volume, a percentage determined by processing location, and cotton market price.
- ‘Eligible article’ must be certified as meeting specific cotton origin requirements.
- A digital tracing system is required to document the cotton supply chain.
- The applicable percentage for the credit varies depending on whether the cotton was processed only in the U.S. or in a country with a free trade agreement.
- Increased credit amounts are available for cotton yarn and fabric.
- The credit is applied as part of the general business credit.
- The credit can be transferred to other credits.
Who is affected
- Textile manufacturers
- Cotton growers
- Importers and exporters of textiles
Bill text
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Sponsors
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