New Tax Credit Gives Small Businesses 70% Off Diaper Changing Stations Starting 2026

This bill introduces a new tax break aimed squarely at making public restrooms more family-friendly. Starting in 2026, eligible small businesses can claim the new “Diaper Changing Station Restroom Credit.” Essentially, if you’re a small business owner and you install both a diaper changing station and a diaper dispenser in at least one public restroom accessible to both men and women, the IRS will give you a tax credit covering 70% of those installation costs. This is a direct incentive to upgrade facilities, making life easier for parents running errands or traveling with infants.

The Fine Print on Who Pays for the Upgrade

This credit is specifically designed for small operations. To qualify, your business either needs to have less than $5 million in gross receipts for the year or employ fewer than 100 full-time equivalent employees. If you meet that threshold and upgrade a business location—which could be a single building or even a separate section of a larger building—you can claim 70% of the qualifying expenses. Qualified expenses cover the cost of the changing station, the dispenser, and the installation itself (Sec. 1).

There’s a cap on the generosity, however. For any single location, you can claim up to $10,000 in credit, minus any amount you claimed for that same location over the previous three years. This means the credit is designed to help with the initial investment, not ongoing maintenance or repeated, small claims. For a small restaurant owner or the proprietor of a local bookstore, this 70% credit significantly reduces the financial hurdle of making their space more accessible to young families. Imagine a small cafe owner who spends $1,500 on the necessary equipment and installation; they’d get $1,050 back as a credit, making the net cost only $450.

The Real-World Impact on Parents and Businesses

For parents, this is a huge convenience upgrade. The bill explicitly requires that to qualify for the credit, the diaper changing station and dispenser must be available in a public restroom accessible to both men and women (Sec. 1). This is a quiet but important detail that addresses the long-standing issue of changing tables being relegated only to women’s restrooms. This provision acknowledges that fathers and non-binary parents also need access to safe, clean changing facilities when they are out with their kids. It shifts the burden of finding a suitable changing spot away from the family and onto the business, where it should be.

From a policy perspective, this is a straightforward, targeted incentive. It uses the tax code to encourage a specific behavior—improving family accommodation—by directly offsetting the cost. The bill does include a standard “no double-dipping” clause: if you claim the 70% credit for an expense, you cannot also deduct that expense as a normal business cost. This prevents businesses from getting a tax break twice on the same dollar, which is standard practice for tax credits. While the credit doesn't kick in until tax years beginning after December 31, 2025, it signals a move toward making public spaces more inclusive for modern families.