I 
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) intro-
duced 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 Representa-
tives 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 CRED-
IT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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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 tax-
able 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 equip-
ment expenditures’ means amounts paid or incurred 
for— 
‘‘(A) the purchase of qualified in-ovo sex 
identification equipment, 
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‘‘(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 identi-
fication equipment’ means equipment which— 
‘‘(A) utilizes optical or non-optical tech-
nology 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 ac-
count 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 
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with respect to any property, the basis of such prop-
erty shall be reduced by the amount of the credit so 
determined. If during any taxable year there is a re-
capture amount determined with respect to any 
property the basis of which was reduced under the 
preceding sentence, the basis of such property (im-
mediately before the event resulting in such recap-
ture) shall be increased by an amount equal to such 
recapture amount. 
‘‘(2) RECAPTURE.—The Secretary shall, by reg-
ulations, 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 busi-
ness 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. 
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‘‘(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 com-
mercial 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 add-
ing 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 
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after December 31, 2025, in taxable years ending 
after such date. 
Æ 
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