Bill > S1919

This bill establishes a new tax credit to encourage the consumption of American-grown cotton and cotton products by providing financial incentives for companies that sell eligible articles made with domestically sourced cotton. The credit amount will be calculated based on the volume of qualified cotton in an article, the applicable percentage (which ranges from 18% to 24% depending on where the cotton is processed), and the average market price of cotton. To qualify, cotton must be grown in the United States, have a permanent bale identification number, and be digitally traced through the entire supply chain. The bill offers additional bonus credits for companies that use qualified cotton yarn (1.6x multiplier) or qualified cotton fabric (6.5x multiplier), with the goal of supporting domestic cotton production and manufacturing. The credit will be part of the general business credit that companies can claim on their tax returns, and it will apply to eligible articles sold on or after January 20, 2025. The legislation aims to strengthen the U.S. cotton industry by providing a financial incentive for companies to source and process cotton domestically, while also establishing a robust tracking system to verify the origin and processing of cotton products.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1919/all-info