US SB1919

Creates a new tax credit (Section 45BB) for businesses that sell finished retail products containing U.S.-grown cotton, calculated by multiplying the volume of qualified cotton by an applicable percentage and the average cotton market price over the preceding 3-year period

Sets the credit percentage at 24% for products processed entirely in the U.S. or in free trade agreement/preference program countries, and 18% for products with any processing in non-FTA countries

Provides bonus multipliers for domestic manufacturing: 1.6x credit for products using U.S.-made cotton yarn and 6.5x credit for products using U.S.-made cotton fabric

Requires cotton to be digitally traced through the entire supply chain from U.S. origin through final processing, with bales identified by permanent USDA-assigned identification numbers

Applies to eligible articles sold on or after January 20, 2025, and allows the credit to be transferred to other taxpayers under existing IRS credit transfer rules