S.1919 - Buying American Cotton Act of 2025 (119th Congress)
Summary
The Buying American Cotton Act of 2025, or S.1919, proposes an amendment to the Internal Revenue Code of 1986. It aims to establish a domestic cotton consumption credit. This credit is designed to incentivize the use of cotton grown in the United States. The bill outlines specific criteria for eligibility, including requirements for tracing the cotton's origin and processing.
Expected Effects
If enacted, this bill would create a tax credit for businesses that use domestically produced cotton. This could lead to increased demand for American-grown cotton. It may also affect international trade relationships and the competitiveness of the US textile industry.
Potential Benefits
- Increased demand for US-grown cotton, potentially boosting the agricultural sector.
- Creation of a supply chain tracing system, enhancing transparency and accountability.
- Potential for job creation in the US textile and agricultural industries.
- Support for domestic industries through tax incentives.
- Encouragement of domestic processing of cotton, adding value within the United States.
Potential Disadvantages
- Potential for increased costs for consumers due to reliance on potentially more expensive domestic cotton.
- Possible trade disputes with countries that do not have free trade agreements or unilateral preference programs with the US.
- Complexity in implementing and monitoring the supply chain tracing system.
- Potential for market distortions due to the tax credit, favoring certain businesses over others.
- Administrative burden on businesses to comply with the credit requirements.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the US Constitution, which grants Congress the power to regulate commerce with foreign nations and among the several states. By incentivizing domestic cotton consumption, the bill seeks to influence economic activity within the United States. The bill's provisions do not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).