[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5440 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5440
To amend the Internal Revenue Code of 1986 to establish a tax credit
for small businesses to provide diaper changing stations in restrooms.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 17, 2025
Mr. Menendez (for himself, Mr. Gomez, Ms. Pettersen, Mr. Mackenzie, Mr.
Landsman, Mr. Goldman of New York, Ms. Tlaib, Mrs. Foushee, Mr.
Swalwell, Mr. Kennedy of New York, Mr. Carson, and Mr. Lawler)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax credit
for small businesses to provide diaper changing stations in restrooms.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. DIAPER CHANGING STATION RESTROOM CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. DIAPER CHANGING STATION RESTROOM CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of an eligible small business which meets the family bathroom
requirement of subsection (e) with respect to a business location of
such business, the diaper changing station restroom credit determined
under this section for the taxable year is an amount equal to 70
percent of the qualified diaper changing station restroom expenses paid
or incurred by the taxpayer during such taxable year with respect to
such business location.
``(b) Limitation.--
``(1) In general.--The credit determined under subsection
(a) with respect to any business location of the taxpayer for
any taxable year shall not exceed the excess (if any) of--
``(A) $10,000, over
``(B) the aggregate credits determined und
subsection (a) with respect to such business location
for the 3 preceding taxable years.
``(2) Business location.--For purposes of this section--
``(A) In general.--Except as provided in
subparagraph (B), the term `business location' means
each building from which the taxpayer conducts a trade
or business (other than the trade or business of being
an employee).
``(B) Separate trades or businesses in separate
portions of a building.--In the case of a taxpayer that
conducts separate trades or businesses from different
portions of a building, each such portion shall be
treated as a separate business location for purposes of
this section if the taxpayer meets the requirements of
subsection (e) applied by taking into account only such
portion of such building.
``(c) Qualified Diaper Changing Station Restroom Expenses.--For
purposes of this section--
``(1) In general.--The term `qualified diaper changing
station restroom expenses' means, with respect to any business
location, amounts paid or incurred by the taxpayer for--
``(A) any diaper changing station (which may be
accessed free of charge) located in any restroom at
such business location (including labor costs and other
expenses associated with installation of such station),
``(B) any diaper dispenser (which may impose a
charge and which may dispense hygiene products in
addition to diapers) located in any restroom at such
business location (including labor costs and other
expenses associated with installation of such
dispenser), and
``(C) installation of one or more restrooms which
meet the requirements of subsection (e) (or renovation
or expansion of one or more existing restrooms into
restrooms which meet such requirements).
``(d) Eligible Small Business.--For purposes of this section--
``(1) In general.--The term `eligible small business' means
any taxpayer for any taxable year if--
``(A) the business gross receipts of such taxpayer
for such taxable year do not exceed $5,000,000, or
``(B) such taxpayer employs less than 100 full-time
equivalent employees for such taxable year (as
determined under section 45R(d)(2)).
``(2) Business gross receipts.--The term `business gross
receipts' means gross receipts received in the course of any
trade or business (other than the trade or business of being an
employee).
``(3) Aggregation rules.--For purposes of this subsection,
all persons treated as a single employer under subsection (a)
or (b) of section 52, or subsection (n) or (o) of section 414,
shall be treated as one person.
``(e) Family Bathroom Requirement.--The requirements of this
subsection are met with respect to any business location if both men
and women have access at such location to at least 1 public restroom
that is equipped with a diaper changing station (which may be accessed
free of charge) and a diaper dispenser (which may impose a charge).
``(f) Denial of Double Benefit.--In the case of any qualified
diaper changing station restroom expenses with respect to which credit
is allowed under subsection (a)--
``(1) no deduction or credit shall be allowed for, or by
reason of, any such expense to the extent of the amount of such
credit, and
``(2) the basis of any property shall be reduced by the
amount of such credit to the extent that such expenses were
taken into account in determining such basis.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(42) in the case of an eligible small business (as
defined in section 45BB), the diaper changing station restroom
credit determined under section 45BB.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45BB. Diaper changing station restroom credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
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