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 Mas-
sachusetts, Mr. MORAN of Virginia, and Mr. SHAYS) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow em-
ployers 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Breastfeeding Pro-
motion and Employers’ Tax Incentive Act’’.
SEC. 2. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES
FOR 
PROVIDING 
APPROPRIATE 
ENVIRON-
MENT ON BUSINESS PREMISES FOR EM-
PLOYED MOTHERS TO BREASTFEED OR EX-
PRESS MILK FOR THEIR CHILDREN.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter 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 av-
erage 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 equip-
ment 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 tax-
payer or employees of the taxpayer relating to
breastfeeding.
‘‘(2) COSTS OF OTHER EXCLUSIVE USE PROP-
ERTY INCLUDED.—Such term includes any amount
paid or incurred for the acquisition or lease of tan-
gible 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 lo-
cated in any residence of the taxpayer or any em-
ployee 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 ........................................................................
Year 3 ........................................................................
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 subpara-
graphs (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 sec-
tion 52 shall be treated as a single taxpayer, and the
dollar amount contained in such subsection shall be
allocated among such persons under regulations pre-
scribed 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 expend-
iture for which a credit is determined under this sec-
tion.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b) of such Code is amended—
(A) by striking ‘‘plus’’ at the end of para-
graph (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 fol-
lowing new paragraph:
‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT
BEFORE JANUARY 1, 2000.—No portion of the un-
used business credit for any taxable year which is
attributable to the credit determined under section
45D may be carried back to a taxable year begin-
ning 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 em-
ployed 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.
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