More than one third of parents struggle to continuously provide diapers for their children.
Maryland and Missouri have had tax incentives for diaper bank donations.
Between FY2021 and FY2024, an average of $146,000 was redeemed from the MO diaper bank tax credit.
Diapers are an essential hygiene item for households with young children. The average annual diaper costs for a single child range from $945 to $1,500 (Porter and Steefel 2015). According to a 2017 survey, 36% of parents reported either having difficulty affording diapers, not having enough diapers, or running out of diapers (Sobowale et al. 2021). Parents who reported diaper insecurity were more likely to visit a pediatrician for urinary tract infections or diaper rash.
Diaper banks are nonprofit organizations that collect, store, and distribute free diapers, (National Diaper Bank Network 2022). They obtain these through diaper drives, in-kind donations, and purchasing with donated funds. Of NC diaper bank users, 62% reported feeling happier and less stressed, and 61% were able to use the money for other essentials like food (Messengale et al. 2017). MO diaper bank users reported fewer cases of diaper rash, urinary tract infection, and hospital or pediatrician visits for diaper related-issues (MO Diaper Banks 2023).
Tax incentives, including tax credits and deductions, can increase charitable donations by offsetting some or all the donation cost with reduced tax liability (Gupta & Spreen 2023). Tax credits directly reduce tax owed by a set amount , while tax deductions reduce the amount of income that is taxable (IRS 2024).
Donations to diaper banks may be eligible for general charitable giving tax incentives. In AZ, for example, several diaper banks qualify as charitable organizations, and taxpayers are eligible for a tax credit equal to 100% of their donation up to a $495 for an individual and $987 for a married couple filing jointly (AZ DOR n.d., AZ Diaper Bank n.d.).
MD allows up to $1,000 to be deducted from taxable income for gifts of cash, diapers, or feminine hygiene products donated to 501(c)(3) organizations established and operating to collect or purchase diapers and distribute them free of charge (Maryland Code §10–208). The policy began in 2021 and is currently in effect until 2027 (MD HB 490).
From July 2019 to December 2024, MO provided a tax credit for 50% of the amount donated to participating diaper banks (RSMo 135.621). This credit required a $100 minimum donation and was capped at a $50,000 maximum credit per year ($100,000 donation) (RSMo 135.621, MO DSS n. d.). Five diaper banks participated from FY 2021 through FY 2023, and six participated in FY 2024 and FY 2025 (MO Office of Administration 2024). From FY 2021 through FY 2024, an average of $146,301 was redeemed in tax credits per fiscal year (Figure 1).
The MO diaper bank tax credit expired on December 31, 2024. In the 2024-2025 legislative session several bills have been filed that would extend or repeal the sunset (HB 647, HB 798,HB 1522, SB 95, SB 671).
Figure 1. MO Diaper bank tax credit amounts redeemed FY 2021 to FY 2024. Data from (MO Office of Administration 2025, MO Office of Administration 2024)
MOST Policy Initiative has several related Science Notes and reports. For more information please see:
Arizona Department of Revenue (n. d) Credits for Contributions to QCOs and QFCOs. https://azdor.gov/tax-credits/credits-contributions-qcos-and-qfcos
Arizona Diaper Bank (n. d.) Giving Opportunities. https://diaperbank.org/giving-opportunites/
Gupta A, Spreen TL (2023) Do tax credits benefit charities? Evidence from two states. Contemporary Economic Policy 42(1): 94-109. https://onlinelibrary.wiley.com/doi/full/10.1111/coep.12622
HB 1522. 103 General Assembly, 1st Regular Session. (MO, 2025). https://house.mo.gov/Bill.aspx?bill=HB1522&year=2025&code=R
HB 647. 103 General Assembly, 1st Regular Session. (MO, 2025). https://house.mo.gov/Bill.aspx?bill=HB647&year=2025&code=R
HB 798. 103 General Assembly, 1st Regular Session. (MO, 2025). https://house.mo.gov/Bill.aspx?bill=HB798&year=2025&code=R
Internal Revenue Service (2024) Credits and Deductions. https://www.irs.gov/credits-and-deductions.
Maryland Code §10–208 https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=gtg§ion=10-208&enactments=false
Maryland House Bill 490 (2024) https://mgaleg.maryland.gov/2024RS/chapters_noln/Ch_784_hb0490T.pdf
Massengale KE, Erausquin JT, Old M. (2017) Health, Social, and Economic Outcomes Experienced by Families as a Result of Receiving Assistance from a Community-Based Diaper Bank, Maternal and Child Health Journal, 21:1985-1994. https://pubmed.ncbi.nlm.nih.gov/28710698/
Missouri Department of Social Services. Diaper Bank Tax Credit. https://dss.mo.gov/dfas/taxcredit/diaper-bank.htm
Missouri Office of Administration (2024) Tax Credit Analysis. https://oa.mo.gov/sites/default/files/Tax_Credit_Analysis_Forms-January_2024_combined.pdf
Missouri Office of Administration (2025) Tax Credit Analysis. https://oa.mo.gov/sites/default/files/Tax_Credit_Analysis_Forms-January_2025_combined.pdf
National Diaper Bank Network (2022) Diaper need overview. https://nationaldiaperbanknetwork.org/wp-content/uploads/2022/12/NDBN_DiaperNeed_Overview_Dec_2022-.pdf
National Diaper Bank Network (n. d.) Tax Credits & Tax Deductions: Impact and Key Differences. https://nationaldiaperbanknetwork.org/wp-content/uploads/NDBN_-Tax-Credits-Tax-Deductions.pdf
Porter S, Steefel L (2015) Diaper Need: A Change for Better Health. Pediatric Nursing. 41(3): 141-144. https://pubmed.ncbi.nlm.nih.gov/26201173/
Revised Statute of Missouri. § 135.621 https://revisor.mo.gov/main/OneSection.aspx?section=135.621
SB 671. 103 General Assembly, 1st Regular Session. (MO, 2025). https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=3863001
SB 95. 103 General Assembly, 1st Regular Session. (MO, 2025). https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=416
Sobowale K, Clayton A, Smith MV (2021) Diaper Need Is Associated with Pediatric Care Use: An Analysis of a Nationally Representative Sample of Parents of Young Children. The Journal of Pediatrics, 230: 146-151. https://www.jpeds.com/article/S0022-3476(20)31360-3/abstract
