This bill proposes to amend the Internal Revenue Code of 1986 by establishing a new Layer Operation Efficiency Equipment Credit , designed to incentivize commercial egg hatcheries in the United States to adopt advanced technology. This credit provides an "applicable percentage" of qualified expenditures for the purchase, installation, and facility modifications of specialized in-ovo sex identification equipment, with percentages ranging from 50% in 2026 down to 30% in 2028. To qualify, the equipment must utilize optical or non-optical technology, achieve at least 95% accuracy in sex determination, and be installed at a U.S.-based commercial egg hatchery facility. The bill includes provisions for basis reduction and recapture, applying to property placed in service after December 31, 2025, and terminating after December 31, 2028.