HR7230119th CongressWALLET

Buying American Cotton Act of 2026

Sponsored By: Representative Murphy, Gregory F. [R-NC-3]

Introduced

Summary

Creates a new federal tax incentive, the Domestic Cotton Consumption Credit, to push textile makers to use verifiable U.S.-grown cotton and to require digital supply‑chain tracing. This bill would tie the credit to documented cotton volume, an applicable percentage, and an applicable market price to reward U.S. origin and verified tracing.

Show full summary
  • Farmers: U.S.-grown extra long staple and upland cotton are eligible only if they meet proof-of-origin rules such as a permanent bale identification number and digital tracing from gin to final processing.
  • Manufacturers: Eligible articles get tiered percentages — 24% when processing is only in the United States or also in a U.S. free-trade agreement country, and 18% when processed in countries without such agreements.
  • Businesses: The credit is computed as documented volume times the applicable percentage times the applicable market price and is added to the general business credit. The bill also allows enhanced elections that multiply the credit for qualified yarn by 1.6 and for qualified fabric by 6.5, and it requires certification, digital-trace rules, and regulations to prevent duplication.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Tax credit for U.S.-grown cotton

This bill would create a Domestic Cotton Consumption Credit for sellers of products made with U.S.-grown cotton. The credit would equal documented pounds of qualified cotton × an applicable percentage (24% or 18%) × the 3-year international market price per pound. Taxpayers could elect higher multipliers for qualified cotton yarn (×1.6) or qualified fabric (×6.5). The credit would apply to eligible articles sold after the date of enactment.

Documentation and rules for cotton sellers

This bill would set rules for which products and cotton qualify for the credit. Qualified cotton must be U.S.-grown extra long staple or upland cotton with a permanent bale ID or other Secretary-approved proof. The bill would require digital tracing of pounds through the supply chain and certification of the cotton quantity. It would define which free-trade agreements and unilateral preference programs allow foreign processing to qualify for the higher 24% rate. The Secretary would write regulations to prevent duplicate claims and would allow the credit to be transferred under existing transfer rules.

Sponsors & CoSponsors

Sponsor

Murphy, Gregory F. [R-NC-3]

NC • R

Cosponsors

  • Sewell

    AL • D

    Sponsored 1/22/2026

  • Rep. Rouzer, David [R-NC-7]

    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

  • Rep. Carey, Mike [R-OH-15]

    OH • R

    Sponsored 1/22/2026

  • Davis (NC)

    NC • D

    Sponsored 1/22/2026

  • Rep. Thompson, Glenn [R-PA-15]

    PA • R

    Sponsored 1/22/2026

  • Gonzalez, V.

    TX • D

    Sponsored 1/22/2026

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 1/22/2026

  • Adams

    NC • D

    Sponsored 1/22/2026

  • Rep. Mann, Tracey [R-KS-1]

    KS • R

    Sponsored 1/22/2026

  • Rep. Brown, Shontel M. [D-OH-11]

    OH • D

    Sponsored 1/22/2026

  • Allen

    GA • R

    Sponsored 1/22/2026

  • Rep. Figures, Shomari [D-AL-2]

    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

  • Rep. Scott, Austin [R-GA-8]

    GA • R

    Sponsored 1/22/2026

  • Gray

    CA • D

    Sponsored 1/22/2026

  • Rep. Jackson, Ronny [R-TX-13]

    TX • R

    Sponsored 1/22/2026

  • Rep. Carbajal, Salud O. [D-CA-24]

    CA • D

    Sponsored 1/22/2026

  • Kelly (MS)

    MS • R

    Sponsored 2/2/2026

  • Rep. Fong, Vince [R-CA-20]

    CA • R

    Sponsored 2/2/2026

  • Rep. Carter, Earl L. "Buddy" [R-GA-1]

    GA • R

    Sponsored 2/2/2026

  • Pingree

    ME • D

    Sponsored 2/2/2026

  • Harris (NC)

    NC • R

    Sponsored 2/2/2026

  • Rep. Guest, Michael [R-MS-3]

    MS • R

    Sponsored 2/2/2026

  • Rep. Harder, Josh [D-CA-9]

    CA • D

    Sponsored 2/2/2026

  • Rep. Rogers, Mike D. [R-AL-3]

    AL • R

    Sponsored 2/2/2026

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 2/3/2026

  • Rep. Patronis, Jimmy [R-FL-1]

    FL • R

    Sponsored 2/3/2026

  • Rep. Collins, Mike [R-GA-10]

    GA • R

    Sponsored 2/3/2026

  • Rep. Valadao, David G. [R-CA-22]

    CA • R

    Sponsored 2/9/2026

  • Rep. McCaul, Michael T. [R-TX-10]

    TX • R

    Sponsored 2/10/2026

  • Lucas

    OK • R

    Sponsored 2/10/2026

  • Rep. Beatty, Joyce [D-OH-3]

    OH • D

    Sponsored 2/12/2026

  • Cuellar

    TX • D

    Sponsored 2/12/2026

  • Ellzey

    TX • R

    Sponsored 2/23/2026

  • Rep. Ross, Deborah K. [D-NC-2]

    NC • D

    Sponsored 2/23/2026

  • Rep. Strong, Dale W. [R-AL-5]

    AL • R

    Sponsored 2/23/2026

  • Rep. Gottheimer, Josh [D-NJ-5]

    NJ • D

    Sponsored 2/23/2026

  • Rep. Kiggans, Jennifer A. [R-VA-2]

    VA • R

    Sponsored 2/24/2026

  • Rep. Ezell, Mike [R-MS-4]

    MS • R

    Sponsored 2/24/2026

  • Norman

    SC • R

    Sponsored 2/25/2026

  • Rep. Kamlager-Dove, Sydney [D-CA-37]

    CA • D

    Sponsored 3/3/2026

  • Rep. Letlow, Julia [R-LA-5]

    LA • R

    Sponsored 3/3/2026

  • Cohen

    TN • D

    Sponsored 3/3/2026

  • Rep. Garcia, Sylvia R. [D-TX-29]

    TX • D

    Sponsored 3/3/2026

  • Rep. Kim, Young [R-CA-40]

    CA • R

    Sponsored 3/4/2026

  • Riley (NY)

    NY • D

    Sponsored 3/12/2026

  • Rep. Hill, J. French [R-AR-2]

    AR • R

    Sponsored 3/12/2026

  • Rep. Gosar, Paul A. [R-AZ-9]

    AZ • R

    Sponsored 3/12/2026

  • Rep. Stanton, Greg [D-AZ-4]

    AZ • D

    Sponsored 3/16/2026

  • Timmons

    SC • R

    Sponsored 3/17/2026

  • Rep. Fallon, Pat [R-TX-4]

    TX • R

    Sponsored 3/18/2026

  • Jack

    GA • R

    Sponsored 3/18/2026

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 4/6/2026

  • Rep. Miller, Max L. [R-OH-7]

    OH • R

    Sponsored 4/6/2026

  • Hudson

    NC • R

    Sponsored 4/6/2026

  • Rep. De La Cruz, Monica [R-TX-15]

    TX • R

    Sponsored 4/6/2026

  • Sessions

    TX • R

    Sponsored 4/6/2026

  • Biggs (SC)

    SC • R

    Sponsored 4/14/2026

  • Clyburn

    SC • D

    Sponsored 4/14/2026

  • Aderholt

    AL • R

    Sponsored 4/22/2026

  • Thompson (MS)

    MS • D

    Sponsored 4/22/2026

  • Cole

    OK • R

    Sponsored 4/28/2026

  • Rep. Westerman, Bruce [R-AR-4]

    AR • R

    Sponsored 4/28/2026

  • Rep. Williams, Roger [R-TX-25]

    TX • R

    Sponsored 4/28/2026

  • Rep. Suozzi, Thomas R. [D-NY-3]

    NY • D

    Sponsored 5/12/2026

  • Rep. Schweikert, David [R-AZ-1]

    AZ • R

    Sponsored 5/12/2026

Roll Call Votes

No roll call votes available for this bill.

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