I 
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 Com-
mittee 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 chang-
ing stations in restrooms. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. DIAPER CHANGING STATION RESTROOM CRED-
IT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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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 REST-
ROOM EXPENSES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified diaper 
changing station restroom expenses’ means, with re-
spect to any business location, amounts paid or in-
curred 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 im-
pose a charge and which may dispense hygiene 
products in addition to diapers) located in any 
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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 ex-
isting 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 re-
ceived 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 em-
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ployer 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 re-
quirements 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 
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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 fol-
lowing 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. 
Æ 
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