H.R. 5440 creates a new tax credit to encourage small businesses to install diaper changing stations and dispensers in their restrooms. Businesses with annual gross receipts under $5 million or fewer than 100 employees can claim a tax credit equal to 70 percent of their qualified expenses, up to a maximum of $10,000 per location per year (with a four-year cap of $40,000 total per location). Eligible expenses include the cost of purchasing and installing diaper changing stations, diaper dispensers, and creating or renovating restrooms that meet the requirement of having at least one publicly accessible restroom equipped with both a free diaper changing station and a diaper dispenser available to both men and women. The tax credit takes effect for taxable years beginning after December 31, 2025, and applies to businesses that install these amenities as part of their effort to support families with young children in commercial spaces.
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