EGG SAVE Act of 2026

This bill introduces a new tax credit to encourage commercial egg hatcheries to adopt advanced efficiency equipment. Specifically, it establishes a layer operation efficiency equipment credit under the Internal Revenue Code, making it part of the general business credit. The credit amount is an "applicable percentage" of qualified expenditures, starting at 50 percent for equipment placed in service in 2027 , decreasing to 40 percent in 2028, and 30 percent in 2029. Qualified expenditures include the purchase and installation of in-ovo sex identification equipment , as well as necessary facility modifications. To qualify, the equipment must utilize optical or non-optical technology to determine the sex of avian embryos before hatch, be placed in service at a U.S. commercial egg hatchery, and achieve an accuracy rate of not less than 95 percent. The bill includes provisions for basis reduction and recapture if the equipment ceases to be eligible, and the credit will not apply to property placed in service after December 31, 2029.