No CRS summary available for this bill.
This section establishes a new general business tax credit (IRC §45BB, added to §38(b)) equal to 50%, 40%, or 30%—depending on the calendar year of placement in service (2026, 2027, or 2028, respectively)—of qualified equipment expenditures for qualified in-ovo sex identification equipment placed in service at a U.S. commercial egg hatchery facility (i.e., a facility primarily hatching chicks for commercial egg production) after December 31, 2025. Qualified equipment expenditures include costs to purchase, install, and modify facilities for equipment that uses optical or non-optical technology to determine avian embryo sex before hatching with at least 95% accuracy. (As background, the credit incentivizes adoption of in-ovo sexing technology to identify and cull male embryos prior to hatching, addressing ethical concerns and reducing post-hatch chick disposal in the U.S. egg production industry.) The credit includes standard rules for basis reduction, recapture (including if the taxpayer ceases egg hatchery operations), inapplicability to property used predominantly outside the U.S., and other rules similar to IRC §50; it terminates for property placed in service after December 31, 2028.