EGG SAVE Act of 2025 in plain language
1: Short title
This section would let the Act be called the Efficiency Gains through Grading Standards And Viable Enhancement Act of 2025, or the EGG SAVE Act of 2025.
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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 .
2: Layer operation efficiency equipment credit
This section would add a new tax credit to the Internal Revenue Code for equipment that identifies the sex of bird embryos inside eggs before they hatch, when that equipment is used at commercial egg hatchery facilities in the United States. The credit would count as part of the general business credit and would equal a set percentage of the amounts a taxpayer pays or incurs to buy the equipment, install it, and make the facility changes needed to run it. The percentage would be 50 percent for equipment placed in service in 2026, 40 percent for equipment placed in service in 2027, and 30 percent for equipment placed in service in 2028. To count as qualifying equipment, it would have to use optical or non-optical technology to determine the sex of avian embryos before hatching, be placed in service at a commercial egg hatchery facility located in the United States, correctly determine sex at least 95 percent of the time, and meet any other requirements the Secretary of the Treasury sets. No expenditure would count toward the credit unless the equipment is actually placed in service by the taxpayer claiming it. If a taxpayer claims the credit for a piece of equipment, that equipment's tax basis would be reduced by the credit amount; if the credit is later recaptured, the basis would be increased back by the recaptured amount as of just before the recapture event. The Secretary would have to issue regulations for recapturing the credit's benefit when equipment stops being eligible for it, including when a taxpayer stops operating a commercial egg hatchery business. Equipment used mainly outside the United States would not qualify for the credit, except for certain property already excepted under section 50(b)(2) of the tax code. Rules similar to those in section 50 of the tax code would also apply to this credit. A commercial egg hatchery facility would mean a facility whose main purpose is hatching chicks for commercial egg production. The Secretary would have to issue regulations needed to carry out the section's purposes, and the credit would not apply to equipment placed in service after December 31, 2028. This section would also add the new credit to the list of credits that make up the general business credit, and would add a matching entry to the tax code's table of sections for that part of the law. These changes would apply to equipment placed in service after December 31, 2025, in tax years ending after that date.
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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: 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.