H.R. 5440

[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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