[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 589 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 589
To amend the Internal Revenue Code of 1986 to provide bonus
depreciation for certain space launch expenditures, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 1, 2023
Mr. 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 Finance
_______________________________________________________________________
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
2023''.
SEC. 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.
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