I

106TH CONGRESS

1ST SESSION H. R. 1163

To amend the Internal Revenue Code of 1986 to allow employers a credit

against income tax for expenses for providing an appropriate environment

on the business premises for employed mothers to breastfeed or express

milk for their children.

IN THE HOUSE OF REPRESENTATIVES

MARCH 17, 1999

Mrs. MALONEY of New York (for herself, Mrs. MORELLA, Mr. FRANK of Massachusetts, Mr. MORAN of Virginia, and Mr. SHAYS) 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 allow employers a credit against income tax for expenses for

providing an appropriate environment on the business

premises for employed mothers to breastfeed or express

milk for their children.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Breastfeeding Pro5 motion and Employers’ Tax Incentive Act’’.
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1 SEC. 2. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES

2 FOR PROVIDING APPROPRIATE ENVIRON3 MENT ON BUSINESS PREMISES FOR EM4 PLOYED MOTHERS TO BREASTFEED OR EX5 PRESS MILK FOR THEIR CHILDREN.

6 (a) IN GENERAL.—Subpart D of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of

8 1986 (relating to business related credits) is amended by

9 adding at the end the following new section:

10 ‘‘SEC. 45D. CREDIT FOR EMPLOYER EXPENSES INCURRED

11 TO FACILITATE EMPLOYED MOTHERS WHO

12 BREASTFEED OR EXPRESS MILK FOR THEIR

13 CHILDREN.

14 ‘‘(a) IN GENERAL.—For purposes of section 38, the

15 breastfeeding promotion and support credit determined

16 under this section for the taxable year is an amount equal

17 to 50 percent of the qualified breastfeeding promotion and

18 support expenditures of the taxpayer for such taxable

19 year.

20 ‘‘(b) DOLLAR LIMITATION.—The credit allowable

21 under subsection (a) for any taxable year shall not exceed

22 the product of—

23 ‘‘(1) $10,000, and

24 ‘‘(2) the number determined by dividing the av25 erage number of full-time employees of the taxpayer

26 during the preceding taxable year by 8,000.
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1 ‘‘(c) QUALIFIED BREASTFEEDING PROMOTION AND

2 SUPPORT EXPENDITURE.—For purposes of this section—

3 ‘‘(1) IN GENERAL.—The term ‘qualified

4 breastfeeding promotion and support expenditure’

5 means any amount paid or incurred in connection

6 with a trade or business of the taxpayer—

7 ‘‘(A) for breast pumps and other equip8 ment specially designed to assist mothers who

9 are employees of the taxpayer to breastfeed or

10 express milk for their children but only if such

11 pumps and equipment meet such standards (if

12 any) prescribed by the Secretary of Health and

13 Human Services, and

14 ‘‘(B) for consultation services to the tax15 payer or employees of the taxpayer relating to

16 breastfeeding.

17 ‘‘(2) COSTS OF OTHER EXCLUSIVE USE PROP18 ERTY INCLUDED.—Such term includes any amount

19 paid or incurred for the acquisition or lease of tan20 gible personal property (not described in paragraph

21 (1)(A)) which is exclusively used by mothers who are

22 employees of the taxpayer to breastfeed or express

23 milk for their children unless such property is lo24 cated in any residence of the taxpayer or any em25 ployee of the taxpayer.
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1 ‘‘(d) RECAPTURE OF CREDIT.—

2 ‘‘(1) IN GENERAL.—If, during any taxable year,

3 any property for which a credit was allowed under

4 this section is disposed of or otherwise ceases to be

5 used by the taxpayer as required by this section,

6 then the tax of the taxpayer under this chapter for

7 such taxable year shall be increased by an amount

8 equal to the recapture percentage of the aggregate

9 decrease in the credits allowed under section 38 for

10 all prior taxable years which would have resulted

11 solely from reducing to zero any credit determined

12 under this section with respect to such property. The

13 preceding sentence shall not apply to property leased

14 to the taxpayer.

15 ‘‘(2) RECAPTURE PERCENTAGE.—For purposes

16 of this subsection, the recapture percentage shall be

17 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.

18 The references to years in the preceding table are

19 references to the consecutive taxable years beginning

20 with the taxable year in which the property is placed

21 in service by the taxpayer as year 1.
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1 ‘‘(3) CERTAIN RULES TO APPLY.—Rules similar

2 to the rules of paragraphs (3) and (4), and subpara3 graphs (B) and (C) of paragraph (5), of section

4 50(a) shall apply for purposes of this subsection.

5 ‘‘(e) SPECIAL RULES.—For purposes of this

6 section—

7 ‘‘(1) AGGREGATION RULES.—For purposes of

8 subsection (b), all persons which are treated as a

9 single employer under subsection (a) or (b) of sec10 tion 52 shall be treated as a single taxpayer, and the

11 dollar amount contained in such subsection shall be

12 allocated among such persons under regulations pre13 scribed by the Secretary.

14 ‘‘(2) REDUCTION IN BASIS.—Rules similar to

15 the rules of paragraphs (1) and (2) of section 50(c),

16 and section 1016(a)(19), shall apply with respect to

17 property for which a credit is determined under this

18 section.

19 ‘‘(3) OTHER DEDUCTIONS AND CREDITS.—No

20 deduction or credit shall be allowed under any other

21 provision of this chapter with respect to any expend22 iture for which a credit is determined under this sec23 tion.’’.

24 (b) CONFORMING AMENDMENTS.—

25 (1) Section 38(b) of such Code is amended—
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1 (A) by striking ‘‘plus’’ at the end of para2 graph (11),

3 (B) by striking the period at the end of

4 paragraph (12) and inserting ‘‘, plus’’, and

5 (C) by adding at the end the following new

6 paragraph:

7 ‘‘(13) the breastfeeding promotion and support

8 credit determined under section 45D(a).’’

9 (2) Subsection (d) of section 39 of such Code

10 (relating to carryback and carryforward of unused

11 credits) is amended by adding at the end the fol12 lowing new paragraph:

13 ‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT

14 BEFORE JANUARY 1, 2000.—No portion of the un15 used business credit for any taxable year which is

16 attributable to the credit determined under section

17 45D may be carried back to a taxable year begin18 ning before January 1, 2000.’’.

19 (3) The table of sections for subpart D of part

20 IV of subchapter A of chapter 1 of such Code is

21 amended by adding at the end the following new

22 item:

‘‘Sec. 45D. Credit for employer expenses incurred to facilitate employed mothers who breastfeed or express milk for

their children.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 1999.

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