H.R. 5776

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5776 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5776

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
layer operation efficiency equipment.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

October 17, 2025

Ms. Malliotakis (for herself, Ms. Escobar, and Mr. Fitzpatrick) 
introduced the following bill; which was referred to the Committee on 
Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
layer operation efficiency equipment.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Efficiency Gains through Grading 
Standards And Viable Enhancement Act of 2025'' or the ``EGG SAVE Act of 
2025''.

SEC. 2. LAYER OPERATION EFFICIENCY EQUIPMENT CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45BB. LAYER OPERATION EFFICIENCY EQUIPMENT CREDIT.

``(a) General Rule.--For purposes of section 38, the layer 
operation efficiency equipment credit for any taxable year is an amount 
equal to the applicable percentage of the qualified equipment 
expenditures paid or incurred by the taxpayer during such taxable year.
``(b) Applicable Percentage.--For purposes of this section, the 
applicable percentage is--
``(1) 50 percent, in the case of property placed in service 
during calendar year 2026,
``(2) 40 percent, in the case of property placed in service 
during calendar year 2027, and
``(3) 30 percent, in the case of property placed in service 
during calendar year 2028.
``(c) Qualified Equipment Expenditures.--For purposes of this 
section--
``(1) In general.--The term `qualified equipment 
expenditures' means amounts paid or incurred for--
``(A) the purchase of qualified in-ovo sex 
identification equipment,
``(B) the installation of such equipment, and
``(C) facility modifications necessary for the 
operation of such equipment.
``(2) Qualified in-ovo sex identification equipment.--The 
term `qualified in-ovo sex identification equipment' means 
equipment which--
``(A) utilizes optical or non-optical technology to 
determine the sex of avian embryos before hatch,
``(B) is placed in service at a commercial egg 
hatchery facility located in the United States,
``(C) achieves an accuracy rate of not less than 95 
percent in sex determination, and
``(D) meets such other requirements as the 
Secretary may prescribe.
``(3) Limitation to property placed in service.--No 
expenditure shall be taken into account under paragraph (1) 
with respect to any equipment unless such equipment is placed 
in service by the taxpayer.
``(d) Other Rules.--
``(1) Basis reduction.--For purposes of this subtitle, if a 
credit is determined under this section with respect to any 
property, the basis of such property shall be reduced by the 
amount of the credit so determined. If during any taxable year 
there is a recapture amount determined with respect to any 
property the basis of which was reduced under the preceding 
sentence, the basis of such property (immediately before the 
event resulting in such recapture) shall be increased by an 
amount equal to such recapture amount.
``(2) Recapture.--The Secretary shall, by regulations, 
provide for recapturing the benefit of any credit allowable 
under subsection (a) with respect to any property which ceases 
to be property eligible for such credit (including recapture in 
cases where the taxpayer ceases to be engaged in the trade or 
business of operating a commercial egg hatchery).
``(3) Property used outside united states not qualified.--
No credit shall be allowable under subsection (a) with respect 
to any property which is used predominantly outside the United 
States. The preceding sentence shall not apply to any property 
described in section 50(b)(2).
``(4) Certain rules to apply.--Rules similar to the rules 
of section 50 shall apply for purposes of this section.
``(e) Definitions.--For purposes of this section, the term 
`commercial egg hatchery facility' means a facility the primary purpose 
of which is to hatch chicks for commercial egg production.
``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.
``(g) Termination.--This section shall not apply to property placed 
in service after December 31, 2028.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) of 
the Internal Revenue Code of 1986 (relating to current year business 
credit) is amended by striking the period at the end of paragraph (41) 
and inserting a comma, and by adding at the end the following new 
paragraph:
``(42) the layer operation efficiency equipment credit 
determined under section 45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45BB. Layer operation efficiency equipment credit.''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall 
apply to property placed in service after December 31, 2025, in 
taxable years ending after such date.
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