Breastfeeding Promotion and Employers' Tax Incentive Act

Summary: Breastfeeding Promotion and Employers' Tax Incentive Act - Amends the Internal Revenue Code to allow a limited credit to employers for expenses incurred in enabling employed nursing mothers to breastfeed.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Breastfeeding Promotion and 
Employers' Tax Incentive Act''.

SEC. 2. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES FOR PROVIDING 
              APPROPRIATE ENVIRONMENT ON BUSINESS PREMISES FOR EMPLOYED 
              MOTHERS TO BREASTFEED OR EXPRESS MILK FOR THEIR CHILDREN.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45D. CREDIT FOR EMPLOYER EXPENSES INCURRED TO FACILITATE 
              EMPLOYED MOTHERS WHO BREASTFEED OR EXPRESS MILK FOR THEIR 
              CHILDREN.

    ``(a) In General.--For purposes of section 38, the breastfeeding 
promotion and support credit determined under this section for the 
taxable year is an amount equal to 50 percent of the qualified 
breastfeeding promotion and support expenditures of the taxpayer for 
such taxable year.
    ``(b) Dollar Limitation.--The credit allowable under subsection (a) 
for any taxable year shall not exceed the product of--
            ``(1) $10,000, and
            ``(2) the number determined by dividing the average number 
        of full-time employees of the taxpayer during the preceding 
        taxable year by 8,000.
    ``(c) Qualified Breastfeeding Promotion and Support Expenditure.--
For purposes of this section--
            ``(1) In general.--The term `qualified breastfeeding 
        promotion and support expenditure' means any amount paid or 
        incurred in connection with a trade or business of the 
        taxpayer--
                    ``(A) for breast pumps and other equipment 
                specially designed to assist mothers who are employees 
                of the taxpayer to breastfeed or express milk for their 
                children but only if such pumps and equipment meet such 
                standards (if any) prescribed by the Secretary of 
                Health and Human Services, and
                    ``(B) for consultation services to the taxpayer or 
                employees of the taxpayer relating to breastfeeding.
            ``(2) Costs of other exclusive use property included.--Such 
        term includes any amount paid or incurred for the acquisition 
        or lease of tangible personal property (not described in 
        paragraph (1)(A)) which is exclusively used by mothers who are 
        employees of the taxpayer to breastfeed or express milk for 
        their children unless such property is located in any residence 
        of the taxpayer or any employee of the taxpayer.
    ``(d) Recapture of Credit.--
            ``(1) In general.--If, during any taxable year, any 
        property for which a credit was allowed under this section is 
        disposed of or otherwise ceases to be used by the taxpayer as 
        required by this section, then the tax of the taxpayer under 
        this chapter for such taxable year shall be increased by an 
        amount equal to the recapture percentage of the aggregate 
        decrease in the credits allowed under section 38 for all prior 
        taxable years which would have resulted solely from reducing to 
        zero any credit determined under this section with respect to 
        such property. The preceding sentence shall not apply to 
        property leased to the taxpayer.
            ``(2) Recapture percentage.--For purposes of this 
        subsection, the recapture percentage shall be determined in 
        accordance with the following table:

  
                                                          The recapture
            ``If the recapture event occurs in:
                                                         percentage is:
                Year 1...............................          100     
                Year 2...............................           60     
                Year 3...............................           30     
                Year 4 or thereafter.................           0.     
        The references to years in the preceding table are references 
        to the consecutive taxable years beginning with the taxable 
        year in which the property is placed in service by the taxpayer 
        as year 1.
            ``(3) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (3) and (4), and subparagraphs (B) and (C) of 
        paragraph (5), of section 50(a) shall apply for purposes of 
        this subsection.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--For purposes of subsection (b), 
        all persons which are treated as a single employer under 
        subsection (a) or (b) of section 52 shall be treated as a 
        single taxpayer, and the dollar amount contained in such 
        subsection shall be allocated among such persons under 
        regulations prescribed by the Secretary.
            ``(2) Reduction in basis.--Rules similar to the rules of 
        paragraphs (1) and (2) of section 50(c), and section 
        1016(a)(19), shall apply with respect to property for which a 
        credit is determined under this section.
            ``(3) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to any expenditure for which a credit is determined 
        under this section.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended--
                    (A) by striking ``plus'' at the end of paragraph 
                (11),
                    (B) by striking the period at the end of paragraph 
                (12) and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) the breastfeeding promotion and support credit 
        determined under section 45D(a).''
            (2) Subsection (d) of section 39 of such Code (relating to 
        carryback and carryforward of unused credits) is amended by 
        adding at the end the following new paragraph:
            ``(9) No carryback of section 45d credit before january 1, 
        2000.--No portion of the unused business credit for any taxable 
        year which is attributable to the credit determined under 
        section 45D may be carried back to a taxable year beginning 
        before January 1, 2000.''.
            (3) 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. 45D. Credit for employer expenses 
                                        incurred to facilitate employed 
                                        mothers who breastfeed or 
                                        express milk for their 
                                        children.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.