,,ii  #aai? ,,congress  #a/ ,session    
,s4 #aiai  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bb1 #bjbe ,mrs4  
,hyde-,smi? 7= h]self1 ,mrs4 ,britt1    
,mr4 ,m>%all1 & ,mr4 ,boozman7 introduc$
 ! foll[+ bill2 :i* 0 read twice &      
ref]r$ to ! ,committee on ,f9ance  ,a   
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to e/abli% a dome/ic      
cotton consumption cr$it4  #a4  ,%ort   
title  ,?is ,act may be cit$ z ! ,buy+  
,am]ican ,cotton ,act ( #bjbe4  #b4     
,dome/ic cotton consumption cr$it  7a7  
,purpose  ,! purposes ( ?is section     
are-- 7#a7 to enc\rage ! consumption (  
cotton :i* orig9at$ 9 ! ,unit$ ,/ates1 &
 products :i* are made f su* cotton1 &  
7#b7 to docum5t ! process+ ( su* cotton 
?r\gh a tru/wor?y supply *a9 trac+      
sy/em4  7b7  ,all[ance ( cr$it  ,subp>t 
,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+ new     
section3  #de;,,bb4  ,dome/ic cotton    
consumption cr$it  7a7  ,cr$it all[$  ,=

 purposes ( section #ch1 ! dome/ic      
cotton consumption cr$it det]m9$ "u ?is 
section = any taxable ye> is an am\nt   
equal to ! product (--  7#a7 ! docum5t$ 
volume ( qualifi$ cotton 9 an eligible  
article sold by ! taxpay] 9 a qualify+  
sale dur+ ! taxable ye>1  7#b7 !        
applicable p]c5tage1 &  7#c7 !          
applicable cotton m>ket price4  7b7     
,qualify+ sale2 applicable p]c5tage2    
applicable cotton m>ket price  7#a7     
,qualify+ sale  ,= purposes ( ?is       
section--  7,a7  ,9 g5]al  ,! t]m       
qualify+ sale means1 ) respect to any   
eligible article1 ! fir/ sale ( su*     
eligible article to an unrelat$ p]son4  
7,b7  ,exception  ,su* t]m %all n       
include any sale = use or consumption ( 
an eligible article outside ( ! ,unit$  
,/ates unless su* sale results 9 income 
:i* is effectively connect$ ) a trade or
 bus9ess 9 ! ,unit$ ,/ates4  7,c7       
,relat$ p]sons  ,p]sons %all be treat$ z
 relat$ to ea* o!r if su* p]sons w\ld be
 treat$ z a s+le employ] "u !           

regulations prescrib$ "u section        
#eb7;b74  7#b7  ,applicable p]c5tage  ,=
 purposes ( subsection 7a77#b71 !       
applicable p]c5tage is--  7,a7 9 ! case 
( an eligible article consi/+ ( qualifi$
 cotton t--  7i7 0 only subject to      
process+ 9 ! ,unit$ ,/ates1 or  7ii7 9  
addition to any process+ t may h occurr$
 )9 ! ,unit$ ,/ates1 0 subject to       
additional process+ only 9 a c\ntry or  
c\ntries ) :i* ! ,unit$ ,/ates has ent]$
 into a free trade agreem5t or = :i* !  
,unit$ ,/ates has ext5d$ b5efits ?r\gh a
 unilat]al pref]5ce program1 #bd p]c5t1 
&  7,b7 9 ! case ( an eligible article  
consi/+ ( qualifi$ cotton t 0 subject to
 additional process+ at any /age ( its  
process+ 9 a c\ntry ) :i* ! ,unit$      
,/ates has n ent]$ into a free trade    
agreem5t or = :i* ! ,unit$ ,/ates has n 
ext5d$ b5efits ?r\gh a unilat]al        
pref]5ce program1 #ah p]c5t4  7#c7      
,applicable cotton m>ket price  ,=      
purposes ( ?is section1 ! t]m applicable
 cotton m>ket price means1 ) respect to 

any eligible article1 ! av]age m>ket    
price = qualifi$ cotton 9 a recogniz$   
int]national m>ket 7z det]m9$ by !      
,secret>y1 9 consultation ) ! ,secret>y 
( ,agriculture7 = ! #c-;cal5d> ye> p]iod
 end+ ) or )9 ! taxable ye> imm$iately  
prec$+ ! taxable ye> 9 :i* ! eligible   
article is sold4  7c7  ,o!r def9itions  
,= purposes ( ?is section-- 7#a7        
,eligible article  7,a7 ,9 g5]al ,! t]m 
eligible article means any product :i*--
  7i7 is compris$ 9 :ole or 9 "p (      
qualifi$ cotton :i* is c]tifi$1 "u su*  
regulations e/abli%$ by ! ,secret>y 9   
consultation ) ! ,secret>y (            
,agriculture1 z meet+ ! requirem5ts (   
p>agraph 7#b77;,b77ii71  7ii7 is 9 its  
f9al condition1 &  7iii7 is ready =     
retail sale to a consum]4  7,b7         
,exception  ,su* t]m %all n include any 
product if-- 7i7 any compon5t ( su*     
product is an eligible article = :i* a  
cr$it has be5 all[$1 or  7ii7 ! taxpay] 
sell+ su* product has be5 notifi$ by !  
p]son f :om su* a compon5t 0 acquir$ t  

su* p]son int5d$ to claim su* cr$it4    
7,c7  ,f9al condition  7i7  ,9 g5]al  ,=
 purposes ( subp>agraph 7,a77ii71 ! t]m 
f9al condition means1 ) respect to any  
article1 ! physical /ate 9 :i* su*      
article is pres5t$ = sale or sold =     
imm$iate resale to a consum]1 det]m9$-- 
7,i7 )\t reg>d to any de m9imis         
augm5tation t c\ld be p]=m$ on x by or  
on behalf ( a retail] ( ! eligible      
article1 &  7,,ii7 )\t reg>d to packag+4
  7ii7  ,de m9imis augm5tation  ,=      
purposes ( clause 7i77,i71 ! t]m de     
m9imis augm5tation means any graphics or
 o!r adornm5t impos$ on or atta*$ to !  
article4  7#b7  ,qualifi$ cotton  7,a7  
,9 g5]al  ,! t]m qualifi$ cotton means  
extra long /aple cotton 7z def9$ 9      
section #aaaa ( ! ,agricultural ,act (  
#bjad7 or upl& cotton 7)9 ! mean+ (     
section #abjg7;c7 ( su* ,act7 :i*--  7i7
 is gr[n 9 ! ,unit$ ,/ates1 &  7ii7     
meets ! pro( ( orig9 requirem5ts (      
subp>agraph 7,b74  7,b7  ,pro( ( orig9  
requirem5ts  ,cotton meets ! pro( (     

orig9 requirem5ts ( ?is subp>agraph if--
  7i7 su* cotton 0--  7,i7 assign$ a    
p]man5t bale id5tification numb]1 or    
7,,ii7 meets su* o!r requirem5ts z !    
,secret>y1 9 consultation ) ! ,secret>y 
( ,agriculture1 det]m9es is suffici5t to
 prove t ! cotton orig9at$ 9 ! ,unit$   
,/ates1 &  7ii7 ! movem5t & volume ( su*
 cotton is digitally trac$1 "u su*      
regulations e/abli%$ by ! ,secret>y 9   
consultation ) ! ,secret>y (            
,agriculture1 ?r\gh ! supply *a9 f its  
,unit$ ,/ates orig9 ?r\gh to ! la/ /age 
( process+ into an eligible article4    
7,c7  ,p]man5t bale id5tification numb] 
,! t]m p]man5t bale id5tification numb] 
means ! autog5]at$ id5tification numb]  
assign$ by ! ,secret>y ( ,agriculture to
 a bale ( qualifi$ cotton t 0 gr[n &    
g9n$ 9 ! ,unit$ ,/ates4  7#c7  ,free    
trade agreem5t  7,a7  ,9 g5]al  ,except 
z provid$ by subp>agraph 7,b71 ! t]m    
free trade agreem5t means a compreh5sive
 bilat]al or regional agreem5t--  7i7 t 
cov]s sub/antially all trade betwe5 !   

p>ties to ! agreem5t1 &  7ii7 ) respect 
to :i* an implem5t+ bill 7z def9$ 9     
section #aea ( ! ,trade ,act ( #aigd    
7#ai ,u4,s4,c4 #baia77 is enact$ into   
law4  7,b7  ,exclusions  ,! t]m free    
trade agreem5t does n include--  7i7 !  
,,wto ,agreem5t1 z def9$ 9 section #b ( 
! ,uruguay ,r\nd ,agreem5ts ,act 7#ai   
,u4,s4,c4 #ceja71  7ii7 ! agreem5ts     
specifi$ 9 #aja7;d7 ( t ,act 7#ai       
,u4,s4,c4 #ceaa7;d771 or  7iii7 any o!r 
multilat]al agreem5t ( ! ,_w ,trade     
,organization or any successor entity4  
7#d7  ,unilat]al pref]5ce program  7,a7 
,9 g5]al  ,except z provid$ by          
subp>agraph 7,b71 ! t]m unilat]al       
pref]5ce program--  7i7 means a program 
( ! ,unit$ ,/ates t provides pref]5tial 
duty treatm5t to textile or app>el      
articles import$ f a =eign c\ntry t is  
designat$ z a b5efici>y ( ! program1 &  
7ii7 includes-- 7,i7 ! ,african ,gr[? & 
,opportunity ,act 7#ai ,u4,s4,c4 #cgja  
et seq47 & section #ejf;,a ( ! ,trade   
,act ( #aigd 7#ai ,u4,s4,c4 #bdff;a71   

7,,ii7 ! ,c>ibbean ,bas9 ,economic      
,recov]y ,act 7#ai ,u4,s4,c4 #bgja et   
seq471  7,,iii7 section #iae ( ! ,trade 
,facilitation & ,trade ,en=cem5t ,act ( 
#bjae 7#ai ,u4,s4,c4 #dded71 &  7,,iv7  
any o!r provision ( law-- 7aa7 e/abli%+ 
a program t provides pref]5tial duty    
treatm5t to textile or app>el articles  
import$ f a =eign c\ntry t is designat$ 
z a b5efici>y ( ! program1 &  7bb7 t is 
enact$ aft] ! date ( ! enactm5t ( ?is   
section4  7,b7  ,exclusion  ,! t]m      
unilat]al pref]5ce program does n       
include ! ,g5]aliz$ ,sy/em ( ,pref]5ces 
"u title ,v ( ! ,trade ,act ( #aigd 7#ai
 ,u4,s4,c4 #bdfa et seq474  7#e7        
,process+  7,a7  ,9 g5]al  ,! t]m       
process+ means any physical process1 or 
any /age 9 su* process1 t contributes to
 ! conv]sion ( an item compris$ 9 :ole  
or 9 "p ( qualifi$ cotton into an       
eligible article4  7,b7  ,exception     
,su* t]m %all n include ! m]e physical  
possession1 /orage1 movem5t1 or packag+ 
( cotton or any eligible article4  7#f7 

,unit$ ,/ates  ,! t]m ,unit$ ,/ates     
includes any possessions ( ! ,unit$     
,/ates4  7#g7  ,volume  ,! t]m volume   
means1 ) respect to any eligible        
article1 ! am\nt ( qualifi$ cotton 9 su*
 article1 z measur$ 9 p\nds4  7d7       
,increas$ cr$it = qualifi$ cotton y>n & 
qualifi$ cotton fabric  7#a7  ,qualifi$ 
cotton y>n  7,a7  ,9 g5]al  ,at !       
election ( ! taxpay]1 9 ! case ( any    
eligible article :i* is compos$ 9 :ole  
or 9 "p ( qualifi$ cotton y>n--  7i7 ?is
 section %all be appli$ sep>ately )     
respect to su* cotton y>n1 &  7ii7 !    
am\nt det]m9$ "u subsection 7a7 )       
respect to su* cotton y>n %all be equal 
to su* am\nt 7det]m9$ )\t reg>d to ?is  
subsection7 multipli$ by #a4f4  7,b7    
,qualifi$ cotton y>n  ,= purposes ( ?is 
subsection1 ! t]m qualifi$ cotton y>n   
means a /r& ( fib] made 9 ! ,unit$      
,/ates f qualifi$ cotton into a =m      
suitable = weav+1 knitt+1 braid+1 felt+1
 webb+1 or o!rwise fabricat+ into a     
fabric4  7#b7  ,qualifi$ cotton fabric  

7,a7  ,9 g5]al  ,at ! election ( !      
taxpay]1 9 ! case ( any eligible article
 :i* is compos$ 9 :ole or 9 "p (        
qualifi$ cotton fabric--  7i7 ?is       
section %all be appli$ sep>ately )      
respect to su* cotton fabric1 &  7ii7 ! 
am\nt det]m9$ "u subsection 7a7 )       
respect to su* cotton fabric %all be    
equal to su* am\nt 7det]m9$ )\t reg>d to
 ?is subsection7 multipli$ by #f4e4     
7,b7  ,qualifi$ cotton fabric  ,=       
purposes ( ?is subsection1 ! t]m        
qualifi$ cotton fabric means any mat]ial
 wov51 knitt$1 felt$1 or o!rwise produc$
 9 ! ,unit$ ,/ates f1 or 9 comb9ation )1
 any fib]1 y>n1 or sub/itute !re( t 0   
made 9 ! ,unit$ ,/ates f qualifi$       
cotton4  7#c7  ,election  ,an election  
"u ?is subsection %all be made at su* "t
 & 9 su* =m z ! ,secret>y may be        
regulations provide4  7e7  ,regulations 
,! ,secret>y %all prescribe su*         
regulations & o!r guidance z may be     
necess>y or appropriate to c>ry out ?is 
section1 includ+ regulations or         

guidance--  7#a7 to e/abli% a sy/em =   
prev5t+ ! cr$it all[$ "u ?is subsection 
m ?an once ) respect to any am\nt (     
qualifi$ cotton1 :i* may include        
e/abli%+ a requirem5t to notify pur*as]s
 ( eligible articles ( ! int5t to claim 
! cr$it all[$ "u ?is section1  7#b7 )   
respect to ! digital trac+ ( cotton "u  
subsection 7c77#b77;,b77ii71 :i* may    
include requirem5ts to id5tify !        
taxpay]s )9 ! supply *a91 &  7#c7 )     
respect to ! c]tification ( qualifi$    
cotton "u subsection 7c77#a77;,a77i71   
:i* may require report+ ( ! specific    
volume ( qualifi$ cotton 9 ! eligible   
article4  4  7c7  ,cr$it all[$ z "p (   
g5]al bus9ess cr$it  ,section #ch7;b7 ( 
su* ,code is am5d$ by /rik+ plus at !   
end ( p>agraph 7#dj71 by /rik+ ! p]iod  
at ! end ( p>agraph 7#da71 & by add+ at 
! end ! foll[+ new p>agraph3  7#db7 !   
dome/ic cotton consumption cr$it det]m9$
 "u section #de;,,bb4  4  7d7  ,transf] 
( cr$it  ,section #fdah7;f77#a77;,a7 (  
su* ,code is am5d$ by add+ at ! end !   

foll[+3  7xii7 ,! dome/ic cotton        
consumption cr$it det]m9$ "u section    
#de;,,bb7a74  4  7e7  ,cl]ical am5dm5t  
,! table ( sections = subp>t ,d ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( su*     
,code is am5d$ by add+ at ! end ! foll[+
 item3  ,sec4 #de;,,bb4 ,dome/ic cotton 
consumption cr$it4  4  7f7  ,effective  
date  ,! am5dm5ts made by ?is section   
%all apply to eligible articles 7z def9$
 9 section #de;,,bb ( ! ,int]nal ,rev5ue
 ,code ( #aihf1 z add$ by subsection    
7b77 t are sold on or aft] ,janu>y #bj1 
#bjbe4