H.R. 10778 creates a new tax credit to encourage hospitals, ambulatory surgical centers, and other healthcare facilities to switch from high-emission anesthetic gases to lower-emission alternatives like isoflurane and sevoflurane. The credit provides a percentage of eligible expenditures based on how much a facility reduces its use of high-emission gases like desflurane and nitrous oxide, with credit rates ranging from 15 to 50 percent depending on emission reduction levels achieved. Healthcare facilities can also claim up to $1,500 per machine for retrofitting equipment to use the lower-emission anesthetic gases. The credit becomes effective for expenses incurred after December 31, 2026, and expires after December 31, 2029, making it a temporary four-year incentive program. The Internal Revenue Service will work with the Department of Health and Human Services and Environmental Protection Agency to develop regulations implementing the credit.