U.S. Senators Hyde-Smith and Britt Lead Efforts to Incentivize American-Grown Cotton
Buying American Cotton Act offers tax credits to retailers selling U.S.-made cotton products to consumers
U.S. Senators Cindy Hyde-Smith (R-MS), Katie Britt (R-AL), Roger Marshall (R-KS), and Senate Agriculture Committee Chairman John Boozman (R-AR) have introduced the Buying American Cotton Act (S.1919). The proposed legislation would incentivize the consumption of U.S.-grown cotton by offering transferable tax credits to businesses that sell products made with American cotton.
The bill targets apparel, home textiles, and nonwoven products 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. Eligible businesses—the first U.S. entities selling these products directly to consumers—would receive tax credits based on factors including proof of U.S. origin, the volume of U.S.-grown cotton in the product, and the location of manufacturing.
In 2024, Alabama farmers planted an estimated 450,000 acres of cotton, with an estimated yield of 779 pounds per acre, resulting in approximately 14.0 million bales of cotton production statewide. Alabama leads the nation in cotton production, with cotton being grown in 59 of Alabama’s 67 Counties. Cotton remains Alabama’s primary row crop, contributing significantly to the State’s economy. It ranks fourth among Alabama’s cash agricultural products, behind broilers, cattle, and eggs.
“It’s imperative we champion American-made cotton produced in our Cotton Belt states, like Alabama. This legislative effort reinforces my commitment to our cotton growers and ginners by incentivizing the purchase of U.S. cotton and by combating the illegal market practices our adversaries implement to gain a competitive advantage,” said Senator Britt. “I’m proud to join my colleagues in supporting this critical industry to produce even more high-quality, Made in America cotton.”
Senator Hyde-Smith emphasized the challenges faced by domestic cotton producers due to global competition. "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," she said. "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."
The National Cotton Council (NCC) has expressed strong support for the bill. NCC Chairman Patrick Johnson described the legislation as "transformative for our industry," noting that the transferable tax credits would encourage businesses to opt for U.S. cotton, thereby strengthening the agricultural sector and creating more jobs.
The Buying American Cotton Act has been referred to the Senate Committee on Finance for further consideration.
The full text of the bill is HERE. A summary of the bill is HERE.
