Buying American Cotton Act of 2026
Sponsored By: Representative Murphy
Introduced
Summary
This bill would create a new _tax credit for U.S.-origin cotton and products made from it_ to encourage domestic use of American cotton and require trustworthy supply-chain tracing. It ties payments to documented pound volumes, an applicable percentage, and an applicable cotton market price.
Show full summary
- Domestic cotton growers and U.S. textile sellers would be able to claim a per-pound credit for eligible articles they sell. The credit equals documented pounds times an applicable percentage times an applicable cotton market price and would be part of the general business credit.
- Textile processors of qualified yarn and fabric could increase the credit with optional multipliers of 1.6x for yarn and 6.5x for fabric, subject to an election to apply those multipliers.
- Claimants would need permanent bale identification numbers and digital tracing to prove origin, follow anti-double-credit rules, and meet reporting requirements. The credit would be integrated into existing tax provisions and could be transferred under new transferability rules, and it would apply to eligible articles sold after enactment.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Tax credit for businesses using U.S. cotton
If enacted, businesses that sell products containing U.S.-grown cotton would be able to claim a new tax credit. The credit would equal documented pounds of qualified U.S. cotton in sold articles times an applicable percentage (24% or 18%) times a market price set as a 3-year average. The bill would set 24% where processing occurred only in the U.S. or in qualifying free-trade or unilateral preference countries, and 18% otherwise. Taxpayers could elect separate multipliers for cotton yarn (1.6x) and fabric (6.5x). The credit would be part of the general business credit and eligible for existing transfer rules, and it would apply to articles sold after enactment.
Tracing and proof rules for cotton
If enacted, the bill would set rules to prove cotton origin and to trace its movement to the final product. Qualified cotton must be extra long staple or upland and grown in the United States, with a permanent bale identification number or other Secretary-approved proof. The bill would require digital tracing of cotton volume through the supply chain to the last processing stage and let the Agriculture Secretary set acceptable tracing systems and reporting rules. Rules would also prevent the credit from being claimed more than once and would define processing and which trade programs count for the higher credit rate.
Sponsors & CoSponsors
Sponsor
Murphy
NC • R
Cosponsors
Sewell
AL • D
Sponsored 1/22/2026
Rouzer
NC • R
Sponsored 1/22/2026
Espaillat
NY • D
Sponsored 1/22/2026
Kustoff
TN • R
Sponsored 1/22/2026
Scott, David
GA • D
Sponsored 1/22/2026
Carey
OH • R
Sponsored 1/22/2026
Davis (NC)
NC • D
Sponsored 1/22/2026
Thompson (PA)
PA • R
Sponsored 1/22/2026
Gonzalez, V.
TX • D
Sponsored 1/22/2026
Moore (AL)
AL • R
Sponsored 1/22/2026
Adams
NC • D
Sponsored 1/22/2026
Mann
KS • R
Sponsored 1/22/2026
Brown
OH • D
Sponsored 1/22/2026
Allen
GA • R
Sponsored 1/22/2026
Figures
AL • D
Sponsored 1/22/2026
Pfluger
TX • R
Sponsored 1/22/2026
Costa
CA • D
Sponsored 1/22/2026
Crawford
AR • R
Sponsored 1/22/2026
Bishop
GA • D
Sponsored 1/22/2026
Scott, Austin
GA • R
Sponsored 1/22/2026
Gray
CA • D
Sponsored 1/22/2026
Jackson (TX)
TX • R
Sponsored 1/22/2026
Carbajal
CA • D
Sponsored 1/22/2026
Kelly (MS)
MS • R
Sponsored 2/2/2026
Fong
CA • R
Sponsored 2/2/2026
Carter (GA)
GA • R
Sponsored 2/2/2026
Pingree
ME • D
Sponsored 2/2/2026
Harris (NC)
NC • R
Sponsored 2/2/2026
Guest
MS • R
Sponsored 2/2/2026
Harder (CA)
CA • D
Sponsored 2/2/2026
Rogers (AL)
AL • R
Sponsored 2/2/2026
Vasquez
NM • D
Sponsored 2/3/2026
Patronis
FL • R
Sponsored 2/3/2026
Collins
GA • R
Sponsored 2/3/2026
Valadao
CA • R
Sponsored 2/9/2026
McCaul
TX • R
Sponsored 2/10/2026
Lucas
OK • R
Sponsored 2/10/2026
Beatty
OH • D
Sponsored 2/12/2026
Cuellar
TX • D
Sponsored 2/12/2026
Ellzey
TX • R
Sponsored 2/23/2026
Ross
NC • D
Sponsored 2/23/2026
Strong
AL • R
Sponsored 2/23/2026
Gottheimer
NJ • D
Sponsored 2/23/2026
Kiggans (VA)
VA • R
Sponsored 2/24/2026
Ezell
MS • R
Sponsored 2/24/2026
Norman
SC • R
Sponsored 2/25/2026
Kamlager-Dove
CA • D
Sponsored 3/3/2026
Letlow
LA • R
Sponsored 3/3/2026
Cohen
TN • D
Sponsored 3/3/2026
Garcia (TX)
TX • D
Sponsored 3/3/2026
Kim
CA • R
Sponsored 3/4/2026
Riley (NY)
NY • D
Sponsored 3/12/2026
Hill (AR)
AR • R
Sponsored 3/12/2026
Gosar
AZ • R
Sponsored 3/12/2026
Stanton
AZ • D
Sponsored 3/16/2026
Timmons
SC • R
Sponsored 3/17/2026
Fallon
TX • R
Sponsored 3/18/2026
Jack
GA • R
Sponsored 3/18/2026
Miller (WV)
WV • R
Sponsored 4/6/2026
Miller (OH)
OH • R
Sponsored 4/6/2026
Hudson
NC • R
Sponsored 4/6/2026
De La Cruz
TX • R
Sponsored 4/6/2026
Sessions
TX • R
Sponsored 4/6/2026
Roll Call Votes
No roll call votes available for this bill.
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