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S. 5346Senate119th Congress (2025-2027)In Committee

EGG SAVE Act of 2026

Sponsored by Todd YoungSen. Todd Young (R-IN)
Introduced August 6, 2026

AI-Generated Summary

Updated August 13, 2026 at 3:02 AM UTC

The EGG SAVE Act creates a federal tax credit for commercial egg hatcheries that buy and install equipment to determine the sex of avian embryos before they hatch. The credit is meant to encourage the use of high‑accuracy, in‑ovo sex‑identification technology and applies only to equipment placed in service in the United States. Credit percentages decline over three years, and the credit is treated as part of the general business credit.

Key Provisions

  • Provides a tax credit equal to a percentage of qualified equipment costs (purchase, installation, and facility modifications) for in‑ovo sex‑identification equipment used at U.S. commercial egg hatcheries.
  • Credit percentages are 50% for equipment placed in service in 2027, 40% for 2028, and 30% for 2029.
  • Qualified equipment must use optical or non‑optical technology, achieve at least 95% accuracy, and meet standards set by the Secretary of the Treasury.
  • The credit reduces the equipment’s tax basis, with recapture rules if the equipment ceases to qualify or the business stops operating a hatchery.
  • Equipment used primarily outside the United States is not eligible, and the credit applies only to property placed in service after Dec. 31, 2026.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

August 6, 2026

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SenateIntro Referral

Introduced in Senate

August 6, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

August 6, 2026

Bill Text

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Introduced in SenateIssued August 6, 2026

II

119th CONGRESS

2d Session

S. 5346

IN THE SENATE OF THE UNITED STATES

August 6, 2026

Mr. Young (for himself and Mr. Luján) 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.

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.

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 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.