To amend the Internal Revenue Code of 1986 to establish a tax credit for small businesses to provide diaper changing stations in restrooms.
Summary
H.R. 5440, the "Diaper Changing Station Restroom Credit Act," proposes to amend the Internal Revenue Code of 1986 by introducing a tax credit for small businesses that provide diaper changing stations in their restrooms. This credit aims to offset the costs associated with installing and maintaining these facilities. The bill specifies eligibility criteria for small businesses based on gross receipts or number of employees.
Expected Effects
If enacted, this bill would incentivize small businesses to install diaper changing stations in restrooms by offering a tax credit. This could lead to increased availability of these facilities for parents and caregivers. The tax credit is capped at $10,000 per business location, with a 70% reimbursement rate for qualified expenses.
Potential Benefits
- Increased availability of diaper changing stations in public restrooms.
- Potential for improved family and community well-being by supporting parents and caregivers.
- Tax incentives for small businesses, potentially stimulating local economies.
- May encourage businesses to improve restroom facilities, benefiting customers.
- Could lead to greater inclusivity and convenience for families with young children.
Potential Disadvantages
- Potential strain on the federal budget due to the new tax credit.
- Complexity in administering and verifying qualified expenses.
- The $5,000,000 gross receipts limit may exclude some businesses that could benefit from the credit.
- Possible unintended consequences, such as businesses focusing solely on meeting the minimum requirements for the credit.
- The credit may not be sufficient to incentivize businesses in low-traffic areas.
Constitutional Alignment
This bill aligns with the general welfare clause of the Constitution, as it aims to promote the well-being of families and children by incentivizing businesses to provide diaper changing stations. Article I, Section 8 grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. The bill falls under Congress's power to tax and spend for the purpose of promoting the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).