Tax credit would cover up to 50% of egg-sex detection equipment costs

What does this do?

HR 5776 creates a temporary federal tax credit for commercial egg hatcheries that purchase and install technology to identify the sex of a chicken egg before it hatches. The credit equals 50% of equipment costs for installations in 2026, 40% in 2027, and 30% in 2028, expiring entirely after 2028. Eligible costs include the equipment itself, installation, and any building modifications required to make the equipment operational.

Who does it affect?

Commercial egg hatcheries operating in the United States are the businesses directly affected. American consumers who buy eggs could be indirectly affected if the technology influences production costs or the practices of major egg suppliers over time.

Why does it matter?

Because only female chickens lay eggs, male chicks hatched at egg production facilities currently have no commercial use and are typically killed shortly after birth. This credit is intended to lower the financial barrier to adopting equipment that could allow hatcheries to remove male eggs earlier in the process, before hatching occurs.

What does it cost, and who pays?

• 50% credit in 2026
• 40% credit in 2027
• 30% credit in 2028