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WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) today announced her introduction of legislation to create a tax credit that incentivizes the consumption of more products made with U.S.-grown cotton.
The Buying American Cotton Act (S.1919) would authorize transferable tax credits on the sale of cotton products, including but not limited to apparel, home textiles, and nonwovens that are either fully manufactured in the United States or imported if made in whole or in part from U.S. extra-long staple cotton or upland cotton.
“Cotton producers in Mississippi and other states grow the best cotton in the world, but global competition makes it harder and harder for them to thrive. My legislation would use the federal code to offer tax credits to promote the use and sale of products made with U.S.-grown cotton,” Hyde-Smith said. “I will work to ensure that this idea gets some consideration as the Senate considers the One Big, Beautiful Bill in the coming weeks.”
The tax credit would be offered to the first U.S. entity that sells an eligible product directly to a consumer in the United States. The credit would be based on a number of factors, including proof of U.S. origin, volume of U.S.-grown cotton in the product, and location of manufacturing. (A summary of the Buying American Cotton Act is available here.)
Mississippi remains a leading cotton-producing state, producing 1.24 million bales on more than 515,000 acres in 2024. The production value from the 2024 crop year totaled almost $500 million.
Original S.1919 cosponsors include Senate Agriculture Committee Chairman John Boozman (R-Ark.), and U.S. Senators Katie Britt (R-Ala.) and Roger Marshall, M.D. (R-Kan.). The legislation has been referred to the Senate Finance Committee for consideration.
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