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H.R. 7230119th CongressIn committeeLatest action Jan 22, 2026Decoded by AI · checked against the record
Official title: Buying American Cotton Act of 2026
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
HR 7230 offers businesses a 24% or 18% tax credit on finished products made with tracked, U.S.-grown cotton.
50-second read · 4 questions answered below
HR 7230 creates a federal tax credit for businesses that sell finished products containing American-grown cotton. The credit rate is 24% when cotton is processed in the U.S. or in trade-agreement countries, and 18% when any processing occurs in a country without such an agreement. Businesses that convert U.S. cotton into yarn or fabric can receive credits up to 6.5 times the base amount for fabric.
The bill affects cotton farmers, textile mills, clothing manufacturers, and retailers across the U.S. supply chain. Any company selling a finished cotton-containing product at retail could claim the credit if the cotton was U.S.-grown and digitally tracked.
The credit is designed to make American cotton more financially attractive to manufacturers, though whether that results in lower consumer prices or more domestic jobs depends on how businesses respond. The credit can be claimed only once per batch of cotton, and companies must notify buyers about whether they intend to use it.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the House Committee on Ways and Means.