House members introduce bill to create tax credit for diaper-changing stations

A group of House members introduced H.R. 5440 on Sept. 17, 2025, proposing a federal tax credit to help small businesses install diaper changing stations and related restroom facilities.

The bill would add section 45BB to the Internal Revenue Code of 1986 and allow an eligible small business a tax credit equal to 70% of qualified diaper changing station restroom expenses paid or incurred during the taxable year. Qualified expenses include the purchase and installation of diaper changing stations and diaper dispensers, and the cost of installing, renovating, or expanding restrooms so they meet the bill—s "family bathroom" requirement.

Under the bill, the credit for any business location in a taxable year would be limited to the excess of $10,000 over the aggregate credits claimed for that location in the three preceding taxable years. An "eligible small business" is defined as a taxpayer whose business gross receipts for the taxable year do not exceed $5,000,000 or who employs fewer than 100 full-time equivalent employees (as determined under section 45R(d)(2)). The measure also applies aggregation rules for commonly controlled businesses.

The family bathroom requirement in the bill specifies that both men and women must have access at the business location to at least one public restroom equipped with a diaper changing station (which may be accessed free of charge) and a diaper dispenser (which may impose a charge). The bill—s denial of double benefit clause prevents taxpayers from claiming a deduction or other credit for expenses to the extent of the new credit and requires a corresponding reduction in the basis of property by the credit amount when applicable.

H.R. 5440 was introduced by Mr. MENENDEZ "for himself" and a group of members listed in the bill text, and the measure was referred to the Committee on Ways and Means. The bill text sets the effective date as taxable years beginning after Dec. 31, 2025.

The measure, as introduced, is a statutory amendment and requires further committee consideration and congressional action before becoming law.