118 S589 IS: American Space Commerce Act of 2023 U.S. Senate 2023-03-01 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II118th CONGRESS1st SessionS. 589IN THE SENATE OF THE UNITED STATESMarch 1, 2023Mr. Rubio (for himself, Mr. Scott of Florida, Mrs. Feinstein, Mr. Wicker, and Mr. Cruz) introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to provide bonus depreciation for certain space launch expenditures, and for other purposes.

1.

Short title

This Act may be cited as the American Space Commerce Act of 2023.

2.

Special allowance for qualified domestic space launch property

(a)

Allowance of bonus depreciation for qualified domestic space launch property

Section 168(k)(2)(A)(i) of the Internal Revenue Code of 1986 is amended—(1)by striking or at the end of subclause (III), (2)by striking or at the end of subclause (IV), (3)by adding or at the end of subclause (V), and (4)by adding at the end the following new subclause: (VI)which is qualified domestic space launch property (as defined in paragraph (11)),.(b)

Extension of termination of bonus depreciation for qualified domestic space launch property

(1)

In general

Section 168(k)(2)(A)(iii) of the Internal Revenue Code of 1986 is amended by inserting (in the case of qualified domestic space launch property, before January 1, 2033) after before January 1, 2027.(2)

Application of applicable percentage

Section 168(k)(6) of such Code is amended by adding at the end the following new subparagraph:(D)

Rule for qualified domestic space launch property

Notwithstanding any other provisions of this paragraph, in the case of any qualified property which is qualified domestic space launch property, the term applicable percentage means, in the case of property placed in service after December 31, 2023, and before January 1, 2033, 100 percent..(c)

Qualified domestic space launch property defined

Section 168(k) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (11)

Qualified domestic space launch property defined

For purposes of this subsection—(A)

In general

The term qualified domestic space launch property means property placed in service before January 1, 2033, that is—(i)a space transportation vehicle or payload (as such terms are defined in section 50101 of title 51, United States Code) that is launched from the United States, or (ii)other property or equipment placed in service for the purpose of facilitating a space launch from the United States.(B)

Special rule for space launches from aircraft

A space transportation vehicle or payload that is launched from an aircraft shall be considered to be launched from the United States if, and only if, such space transportation vehicle or payload is—(i)substantially manufactured within the United States, as determined by the Secretary, and(ii)launched from an aircraft on a flight that originated from United States soil. (C)

United States

The term United States includes the possessions of the United States..(d)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2023.