Buying American Cotton Act of 2025

The bill establishes a new transferable tax credit for companies that sell eligible articles made from US-grown cotton, processed in the US or FTA countries. This directly incentivizes the use of domestic cotton throughout the supply chain, benefiting US cotton farmers, textile manufacturers, and apparel brands that utilize US-made cotton products. The increased credit for yarn and fabric further boosts domestic processing. Companies like Hanesbrands (HBI), Gildan Activewear (GIL), Levi Strauss & Co. (LEVI), and Kontoor Brands (KTB) have significant US or nearshore manufacturing operations and are major consumers of cotton, making them direct beneficiaries of incentives for domestic cotton sourcing and processing.