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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5776 Introduced in House (IH)]
<DOC>
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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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