A new Senate bill would authorize tax credits designed to incentivize increased consumption of U.S. cotton and U.S. cotton manufactured products.
“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,” said Sen. Cindy Hyde-Smith, R-Miss., who introduced the Buying American Cotton Act May 28. The bill “would use the federal code to offer tax credits to promote the use and sale of products made with U.S.-grown cotton,” she added.
The bill's cosponsors include Agriculture Committee Chair John Boozman, R-Ark., Katie Britt, R-Ala., and Roger Marshall, R-Kan.
The tax credits would be available to a U.S. entity, such as a brand or retailer, that sells an eligible product directly to an American consumer. Factors considered when calculating tax credits would include proof of U.S. origin, volume of U.S.-grown cotton in the product and location of manufacturing.
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Robbie Minnich, vice president of Washington operations at the National Cotton Council, told Agri-Pulse the bill presents “an opportunity to leverage the power of the U.S. consumer.”
Minnich said U.S. consumers buy about 20 million bales of cotton “to make all the goods that U.S. consumers buy, but less than a quarter of that is actually U.S. cotton, and so we’re really trying to bridge that gap.”
The senators are hoping to include the measure in the budget reconciliation bill that is now being considered by the chamber.
“I will work to ensure that this idea gets some consideration as the Senate considers the One Big, Beautiful Bill in the coming weeks,” Hyde-Smith said.
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