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To amend the Internal Revenue Code of 1986 to provide a tax credit for layer operation efficiency equipment.
Summary
- The bill creates a new tax credit for commercial egg hatcheries that purchase and install in-ovo sex identification equipment, which uses optical or non-optical technology to determine the sex of chicken embryos before hatching.
- The tax credit covers 50 percent of qualified equipment expenditures for property placed in service in 2027, 40 percent in 2028, and 30 percent in 2029.
- Qualified expenditures include the purchase of in-ovo sex identification equipment, installation costs, and facility modifications necessary to operate the equipment.
- The equipment must be installed at a commercial egg hatchery facility located in the United States and must achieve at least 95 percent accuracy in determining embryo sex.
- The basis of the equipment is reduced by the amount of the tax credit claimed, and the Secretary can recapture the credit if the equipment ceases to be eligible or if the taxpayer stops operating a commercial egg hatchery.
- The tax credit applies only to equipment placed in service after December 31, 2026, and expires for any equipment placed in service after December 31, 2029.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Sen. Young, Todd [R-IN] (R-IN)
1 cosponsor
- Sen. Luján, Ben Ray [D-NM] (D-NM)
Actions (2)
- Aug 6, 2026 Read twice and referred to the Committee on Finance. · senate
- Aug 6, 2026 Introduced in Senate
Text versions (1)
Bills are re-published as they move (Introduced → Reported → Engrossed → Enrolled …). Each stage below is a separate text; pick two to see what changed. Data from Congress.gov.
Full text
IN THE SENATE OF THE UNITED STATES
August 6, 2026
Mr. Young (for himself and Mr. Lujan) introduced the following bill; which was read twice and referred to the Committee on Finance
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 Representatives 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 2026” or the “EGG SAVE Act of 2026”.
SEC. 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:
“SEC. 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 2027,
“(2) 40 percent, in the case of property placed in service during calendar year 2028, and
“(3) 30 percent, in the case of property placed in service during calendar year 2029.
“(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, 2029.”.
(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 “plus” at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting “, plus”, 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.—The amendments made by this section shall apply to property placed in service after December 31, 2026, in taxable years ending after such date. <all>
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