,,ii  #aaith ,,congress  #b;d ,session  
,s4 #ecdf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #f1    
#bjbf,mr4 ,young 7for himself and ,mr4  
,lujn7 introduced the following bill2   
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to provide a tax credit for layer 
operation efficiency equipment4  #a4    
,short title ,this ,act may be cited as 
the ,efficiency ,gains through ,grading 
,standards ,and ,viable ,enhancement    
,act of #bjbf or the ,,egg ,,save ,act  
of #bjbf4  #b4 ,layer operation         
efficiency equipment credit  7a7 ,in    
general ,subpart ,d of part ,,iv of     
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new section3  #de;,,bb4 ,layer
 operation efficiency equipment credit  
7a7 ,general rule ,for purposes of      
section #ch1 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     
year4  7b7 ,applicable percentage ,for  
purposes of this section1 the applicable
 percentage is-- 7#a7 #ej percent1 in   
the case of property placed in service  
during calendar year #bjbg1  7#b7 #dj   
percent1 in the case of property placed 
in service during calendar year #bjbh1  
and  7#c7 #cj percent1 in the case of   
property placed in service during       
calendar year #bjbi4  7c7 ,qualified    
equipment expenditures ,for purposes of 
this section-- 7#a7 ,in general ,the    
term qualified equipment expenditures   
means amounts paid or incurred for--    
7,a7 the purchase of qualified in-ovo   
sex identification equipment1  7,b7 the 
installation of such equipment1 and     
7,c7 facility modifications necessary   
for the operation of such equipment4    
7#b7 ,qualified in-ovo sex              
identification equipment ,the term      

qualified in-ovo sex identification     
equipment means equipment which-- 7,a7  
utilizes optical or non-optical         
technology to determine the sex of avian
 embryos before hatch1  7,b7 is placed  
in service at a commercial egg hatchery 
facility located in the ,united ,states1
  7,c7 achieves an accuracy rate of not 
less than #ie percent in sex            
determination1 and  7,d7 meets such     
other requirements as the ,secretary may
 prescribe4  7#c7 ,limitation to        
property placed in service ,no          
expenditure shall be taken into account 
under paragraph 7#a7 with respect to any
 equipment unless such equipment is     
placed in service by the taxpayer4  7d7 
,other rules  7#a7 ,basis reduction ,for
 purposes of this subtitle1 if a credit 
is determined under this section with   
respect to any property1 the basis of   
such property shall be reduced by the   
amount of the credit so determined4 ,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 sentence1   
the basis of such property 7immediately 
before the event resulting in such      
recapture7 shall be increased by an     
amount equal to such recapture amount4  
7#b7 ,recapture ,the ,secretary shall1  
by regulations1 provide for recapturing 
the benefit of any credit allowable     
under subsection 7a7 with respect to any
 property which ceases to be property   
eligible for such credit 7including     
recapture in cases where the taxpayer   
ceases to be engaged in the trade or    
business of operating a commercial egg  
hatchery74  7#c7 ,property used outside 
,united ,states not qualified ,no credit
 shall be allowable under subsection 7a7
 with respect to any property which is  
used predominantly outside the ,united  
,states4 ,the preceding sentence shall  
not apply to any property described in  
section #ej7;b77#b74  7#d7 ,certain     
rules to apply ,rules similar to the    
rules of section #ej shall apply for    

purposes of this section4  7e7          
,definitions ,for purposes of this      
section1 the term commercial egg        
hatchery facility means a facility the  
primary purpose of which is to hatch    
chicks for commercial egg production4   
7f7 ,regulations ,the ,secretary shall  
prescribe such regulations as may be    
necessary or appropriate to carry out   
the purposes of this section4  7g7      
,termination ,this section shall not    
apply to property placed in service     
after ,december #ca1 #bjbi4  4  7b7     
,credit made part of general business   
credit ,section #ch7;b7 of the ,internal
 ,revenue ,code of #aihf 7relating to   
current year business credit7 is amended
 by striking plus at the end of         
paragraph 7#dj71 by striking the period 
at the end of paragraph 7#da7 and       
inserting 1 plus1 and by adding at the  
end the following new paragraph3  7#db7 
the layer operation efficiency equipment
 credit determined under section        
#de;,,bb7a74  4  7c7 ,clerical amendment

 ,the table of sections for subpart ,d  
of part ,,iv of subchapter ,a of chapter
 #a of the ,internal ,revenue ,code of  
#aihf is amended by adding at the end   
the following new item3  ,sec4 #de;,,bb4
 ,layer operation efficiency equipment  
credit4  4  7d7 ,effective date ,the    
amendments made by this section shall   
apply to property placed in service     
after ,december #ca1 #bjbf1 in taxable  
years ending after such date4