HR 5440
To amend the Internal Revenue Code of 1986 to establish a tax credit for small businesses to provide diaper changing stations in restrooms.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Bill overview
This bill creates a tax credit for small businesses to encourage the installation of diaper changing stations in restrooms. Eligible small businesses with gross receipts under $5 million or fewer employees under 100 can receive up to 70% of qualified expenses, such as the cost of stations, dispensers, or restroom renovations, capped at $10,000 per location, and subject to a three-year rolling limit. The bill also requires businesses to provide both men and women with access to a restroom equipped with a diaper changing station and dispenser.
Key provisions
- Provides a 70% tax credit for qualified diaper changing station and dispenser expenses.
- Defines an ‘eligible small business’ based on gross receipts and employee count.
- Limits the credit to $10,000 per business location annually.
- Imposes a three-year rolling credit limitation.
- Requires businesses to meet a ‘family bathroom requirement’ with accessible stations and dispensers.
- Includes expenses for restroom installation or renovation to meet the family bathroom requirement.
- Defines ‘qualified diaper changing station restroom expenses’ to include stations, dispensers, and related costs.
- Effective date is set for taxable years beginning after December 31, 2025.
Who is affected
- Small businesses
- Retailers
- Restaurants
- Food service establishments
- Businesses with employees
Notable changes
- Establishes a new tax credit specifically for diaper changing stations.
Sponsors
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Primary sponsor
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119th CONGRESS — 1st Session
H. R. 5440
IN THE HOUSE OF REPRESENTATIVES
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.
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—
$10,000, over
the aggregate credits determined und subsection (a) with respect to such business location for the 3 preceding taxable years.
For purposes of this section—
business locationmeans each building from which the taxpayer conducts a trade or business (other than the trade or business of being an employee).
The term qualified diaper changing station restroom expenses
means, with respect to any business location, amounts paid or incurred by the taxpayer for—
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
For purposes of this section—
The term eligible small business
means any taxpayer for any taxable year if—
the business gross receipts of such taxpayer for such taxable year do not exceed $5,000,000, or
such taxpayer employs less than 100 full-time equivalent employees for such taxable year (as determined under section 45R(d)(2)).
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).
In the case of any qualified diaper changing station restroom expenses with respect to which credit is allowed under subsection (a)—
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
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.
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:
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.