No CRS summary available for this bill.
This section establishes a new general business tax credit under new IRC §45BB for the documented volume of qualified cotton (i.e., extra long staple cotton or upland cotton grown in the United States, as defined in the Agricultural Act of 2014, with digital supply chain tracing from origin via permanent bale identification number or equivalent proof) in eligible articles (i.e., final consumer-ready products containing such certified cotton) sold in qualifying sales (i.e., first sale to an unrelated person, generally excluding foreign use or consumption unless U.S. trade or business income results). The credit equals such volume multiplied by (1) 24% if processing occurs only in the United States or the United States plus free trade agreement (i.e., comprehensive bilateral or regional trade agreement with an implementing bill enacted under 19 U.S.C. §2191) or unilateral preference program countries, or (2) 18% otherwise, and the applicable cotton market price (i.e., three-calendar-year average price in a recognized international market, as determined by Treasury in consultation with USDA). (Thus, the credit incentivizes U.S. cotton consumption and verifies origin through regulated tracing.)