This bill establishes a new domestic cotton consumption tax credit within the Internal Revenue Code, aiming to encourage the use of cotton originating in the United States and products made from it. A key objective is to document the processing of such cotton through a trustworthy supply chain tracing system. The credit is provided for the first sale of eligible articles to an unrelated person. The credit amount is determined by multiplying the documented volume of qualified cotton in an eligible article by an applicable percentage and the applicable cotton market price. The applicable percentage is 24% if the cotton was processed only in the U.S. or in countries with U.S. free trade agreements or preference programs. It drops to 18% if processing occurred in other countries. An eligible article is defined as a product in its final condition for retail sale, comprised of qualified cotton which is U.S.-grown and digitally traced from origin. The bill also provides for increased credit amounts for qualified cotton yarn (1.6 times the base credit) and qualified cotton fabric (6.5 times the base credit) made in the United States. These enhancements aim to further incentivize domestic manufacturing of intermediate cotton products. The Secretary of the Treasury, in consultation with the Secretary of Agriculture, is tasked with prescribing regulations for certification, digital tracing, and preventing duplicate credit claims. This new credit will be integrated into the general business credit and is transferable. The provisions of this bill will apply to eligible articles sold on or after January 20, 2025.