summary
Introduced
01/22/2026
01/22/2026
In Committee
01/22/2026
01/22/2026
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A BILL To amend the Internal Revenue Code of 1986 to establish a domestic cotton consumption credit.
AI Summary
This bill, titled the "Buying American Cotton Act of 2026," aims to encourage the use of domestically grown cotton by establishing a new tax credit for businesses. The core provision creates a "domestic cotton consumption credit" that can be claimed by taxpayers who sell eligible articles made from qualified cotton. To qualify, the cotton must be grown in the United States and its origin must be proven through a system that includes a permanent bale identification number and digital tracing throughout the supply chain. The credit amount is calculated based on the volume of qualified cotton in the sold article, an "applicable percentage" that varies depending on where the cotton was processed (higher percentages for processing solely in the U.S. or in countries with free trade agreements), and the average market price of cotton. The bill also offers increased credit amounts for eligible articles made from qualified cotton yarn or fabric that are processed entirely within the United States. The credit is intended to be part of the general business credit and will apply to eligible articles sold after the bill's enactment.
Committee Categories
Budget and Finance
Sponsors (46)
Greg Murphy (R)*,
Alma Adams (D),
Rick Allen (R),
Joyce Beatty (D),
Sanford Bishop (D),
Shontel Brown (D),
Salud Carbajal (D),
Mike Carey (R),
Buddy Carter (R),
Mike Collins (R),
Jim Costa (D),
Rick Crawford (R),
Henry Cuellar (D),
Don Davis (D),
Jake Ellzey (R),
Adriano Espaillat (D),
Mike Ezell (R),
Shomari Figures (D),
Vince Fong (R),
Vicente Gonzalez (D),
Josh Gottheimer (D),
Adam Gray (D),
Michael Guest (R),
Josh Harder (D),
Mark Harris (R),
Ronny Jackson (R),
Trent Kelly (R),
Jen Kiggans (R),
David Kustoff (R),
Frank Lucas (R),
Tracey Mann (R),
Michael McCaul (R),
Barry Moore (R),
Jimmy Patronis (R),
August Pfluger (R),
Chellie Pingree (D),
Mike Rogers (R),
Deborah Ross (D),
David Rouzer (R),
Austin Scott (R),
David Scott (D),
Terri Sewell (D),
Dale Strong (R),
G.T. Thompson (R),
David Valadao (R),
Gabe Vasquez (D),
Last Action
Referred to the House Committee on Ways and Means. (on 01/22/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/7230/all-info |
| BillText | https://www.congress.gov/119/bills/hr7230/BILLS-119hr7230ih.pdf |
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