The Buying American Cotton Act of 2025 introduces a domestic cotton consumption credit to encourage the use of U.S.-grown cotton in products.
The Buying American Cotton Act of 2025 amends the Internal Revenue Code to establish a domestic cotton consumption credit. This credit aims to encourage the consumption of U.S.-grown cotton and products made from it. The credit is calculated based on the volume of qualified cotton in the product, the applicable percentage, and the applicable cotton market price. The credit is increased for cotton yarn and fabric. The bill also includes provisions for documenting the processing of cotton through a digital tracing system and certifying the origin of cotton.
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- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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