[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1369 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1369
To amend the Internal Revenue Code of 1986 to provide bonus
depreciation for certain space launch expenditures, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2021
Mr. Posey (for himself and Mr. Crist) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide bonus
depreciation for certain space launch expenditures, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Space Commerce Act of
2021''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The United States is the only nation with a competitive
commercial space launch industry.
(2) A robust domestic launch industry and capability is
crucial to the United States' continuing economic, national
security, scientific, and exploration leadership.
(3) Commercial space launch vehicles manufactured and
launched in the United States by United States launch service
providers benefit national security and the national economy,
earth and space science, and human spaceflight, and are
enablers of the global space economy.
(4) Commercial space launch vehicles manufactured and
launched in the United States by United States launch service
providers are used for virtually all United States national
security payloads, and therefore, are indispensable to the
security of the United States, as well as its allies and
friends.
(5) Multiple American companies are developing small launch
vehicles to compete in the domestic and international
commercial launch market. These companies are financed
predominately by private capital, are independently developing
capabilities, and are primarily serving commercial customers.
(6) Several foreign governments have taken notice of U.S.
market growth and have begun to fund their own vehicles to
compete within the same market. While some of these
international vehicles are putatively ``private,'' most benefit
from subsidies or developmental support from their national
governments.
(7) The 2019 Report to Congress of the United States-China
Economic and Security Review Commission stated, ``China is
taking steps to establish a commanding position in the
commercial launch and satellite sectors relying in part on
aggressive state-backed financing that foreign market-driven
companies cannot match''.
(8) The report further adds, ``China has already succeeded
in undercutting some U.S. and other foreign launch and
satellite providers in the international market, threatening to
hollow out these countries' space industrial bases''.
(9) China announced a plan to advance its Space ambitions
by creating a Space Economic Zone to generate $10 trillion
annually.
(10) The U.S. commercial launch industry, whose viability
the National Aeronautics and Space Administration and the
Department of Defense depend on to launch critical national
assets, is forced to compete with state-backed launch
enterprises across the globe whose launch providers are not
required to be profitable.
(11) A strong domestic space launch industry is in the
national security interest of the United States.
(12) Foreign launch providers are heavily subsidized by
their governments and use these subsidies to intentionally
price below cost in an effort to undercut American competition,
materially harming the American industrial base.
(13) Increased use of United States-manufactured commercial
launch vehicles launched in the United States by United States
launch service providers should be encouraged.
(14) Congress supports continued United States leadership
in space.
SEC. 3. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.
(a) Allowance of Bonus Depreciation for Qualified Domestic Space
Launch Property.--Section 168(k)(2)(A) of the Internal Revenue Code of
1986 is amended in clause (i), by striking ``or'' at the end of
subclause (III), by striking ``or'' at the end of subclause (IV), by
adding ``or'' at the end of subclause (V), and 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 striking ``before January 1,
2027.'' and inserting ``before January 1, 2027 (in the case of
qualified domestic space launch property, before January 1,
2033).''.
(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.
<all>