S. 5346

119 S5346 IS: Efficiency Gains through Grading Standards And Viable Enhancement Act of 2026
 U.S. Senate
 2026-08-06
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 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 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.