Excise taxes on passenger space travel

(a)

In general

Chapter 33 of the Internal Revenue Code of 1986 is amended by inserting after subchapter C the following new subchapter:

Passenger space travel

Sec. 4285. Passenger tax.

Sec. 4286. Launch tax.

Sec. 4287. Definitions and special rules.

4285.

Passenger tax

(a)

In general

There is hereby imposed on the amount paid for taxable space transportation of any non-exempt person a tax equal to 10 percent of the amount so paid.(b)

By whom paid

The taxes imposed by this section shall be paid by the person making the payment subject to tax.(c)

Taxable space transportation

For purposes of this section, the term taxable space transportation means transportation on any space vehicle if the launch or reentry of such vehicle is required to be licensed under chapter 509 of title 51, United States Code.

4286.

Launch tax

(a)

In general

There is hereby imposed on each taxable space launch a tax equal to—(1)$2,000,000 if any portion of the intentional flight path of any passenger-carrying portion of the space vehicle is other than a suborbital trajectory, and(2)$100,000 in any other case.(b)

By whom paid

The tax imposed by this section shall be paid by the person which obtains (or is required to obtain) the license described in subsection (c)(1). (c)

Taxable space launch

For purposes of this section, the term taxable space launch means any launch of a space vehicle if—(1)such launch is required to be licensed under chapter 509 of title 51, United States Code, and(2)one or more non-exempt persons are transported by such vehicle.(d)

Treatment of launch and reentry vehicles which are launched together

A launch vehicle and a reentry vehicle which are launched together shall be treated as a single space vehicle for purposes of this section.(e)

Inflation adjustment

In the case of any calendar year after 2022, each dollar amount in subsection (a) shall be increased by an amount equal to—(1)such dollar amount, multiplied by(2)the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting calendar year 2021 for calendar year 2016 in subparagraph (A)(ii) thereof.

Any increase determined under the preceding sentence shall be rounded to the nearest dollar.

4287.

Definitions and special rules

(a)

Definitions

For purposes of this chapter—(1)

Space vehicle

The term space vehicle means any launch vehicle and any reentry vehicle.(2)

Non-exempt person

The term non-exempt person means any person other than—(A)crew, or(B)a government astronaut.(3)

Other terms

The following terms shall have the same meaning given such terms in section 50902 of title 51, United States Code:(A)Crew, except that in no event shall a person be treated as crew for purposes of this chapter if the amount which would be subject to tax under section 4285 if such person was not so treated exceeds the amount of compensation that such person receives for services as crew.(B)Government astronaut.(C)Launch vehicle.(D)Reentry vehicle.(E)Suborbital trajectory.(b)

Regulatory authority

The Secretary may issue such regulation or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subchapter, including rules similar to the rules of subsections (a), (b), (c), and (d) of section 4263 with respect to the taxes imposed by section 4285.

(b)

Credit or refund to certain persons collecting passenger tax

Section 6415 of such Code is amended by striking or 4271 inserting 4271, or 4285. (c)

Clerical amendment

The table of subchapters for chapter 33 of such Code is amended by inserting after the item relating to subchapter C the following new item:

Subchapter D. Passenger space travel.

(d)

Effective date

The amendments made by this section shall apply to calendar quarters beginning more than 60 days after the date of the enactment of this Act.