EGG SAVE Act of 2026

What it does

• •Creates a new federal tax credit for commercial egg hatcheries that purchase and install in-ovo sex identification equipment (technology that determines embryo sex before hatching).
• •Sets declining credit percentages: 50% of qualified equipment expenditures for 2027, 40% for 2028, and 30% for 2029.
• •Covers purchase, installation, and facility modification costs for qualifying equipment that achieves at least 95% accuracy in sex determination and is used at U.S. commercial egg hatchery facilities.
• •Requires basis reduction of property receiving the credit and allows recapture if equipment ceases to qualify or hatchery operations end.

Why it matters

• •The credit incentivizes adoption of in-ovo sex identification technology at commercial egg hatcheries during a defined three-year window, with incentive strength declining over time.
• •In-ovo sexing allows hatcheries to identify and eliminate male chicks before hatch, potentially reducing hatchery practices related to post-hatch male chick culling.

Who is affected

• •Commercial egg hatchery facilities located in the United States that purchase and deploy in-ovo sex identification equipment.
• •Manufacturers and suppliers of optical or non-optical embryo sex identification technology meeting the specified accuracy and performance standards.

What happens next

The bill was introduced in the Senate on August 6, 2026, read twice, and referred to the Committee on Finance; the amendments would take effect for property placed in service after December 31, 2026.