H.R.3898 - Zero Gravity, Zero Tax Act of 2000106th Congress (1999-2000)
|Sponsor:||Rep. Rohrabacher, Dana [R-CA-45] (Introduced 03/09/2000)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 03/09/2000 Referred to the House Committee on Ways and Means. (All Actions)|
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Text: H.R.3898 — 106th Congress (1999-2000)All Information (Except Text)
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Introduced in House (03/09/2000)
[Congressional Bills 106th Congress] [From the U.S. Government Printing Office] [H.R. 3898 Introduced in House (IH)] 106th CONGRESS 2d Session H. R. 3898 To amend the Internal Revenue Code of 1986 to exclude from Federal taxation certain income derived from the manufacture of products and provision of services in outer space. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 9, 2000 Mr. Rohrabacher (for himself, Mr. Sensenbrenner, Mr. Hall of Texas, Mr. Gordon, Mr. Weldon of Florida, Mr. Calvert, Mr. Bartlett of Maryland, Mr. Lucas of Oklahoma, Mr. Cook, and Ms. Jackson-Lee of Texas) 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 exclude from Federal taxation certain income derived from the manufacture of products and provision of services in outer space. 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 ``Zero Gravity, Zero Tax Act of 2000''. SEC. 2. SPACE-RELATED INCOME. (a) Exclusion From Gross Income.-- (1) In general.--Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by redesignating section 139 as section 140 and inserting after section 138 the following new section: ``SEC. 139. SPACE-RELATED INCOME. ``(a) General Rule.--Gross income shall not include space-related income. ``(b) Space-Related Income.-- ``(1) In general.--For purposes of this section, the term `space-related income' means-- ``(A) income derived from the sale by the taxpayer to an unrelated person of-- ``(i) any product which is manufactured by the taxpayer in outer space, and ``(ii) any service provided by the taxpayer in or from outer space, and ``(B) income of an individual attributable to services performed in or from outer space by such individual in a trade or business. ``(2) Exception for telecommunications services, etc.-- Paragraph (1)(A)(ii) shall not apply to any telecommunications service, any service provided by a weather or other earth observation satellite, and any service of transporting property to or from outer space. ``(c) Exclusion From Tariffs, Etc.--Any product-- ``(1) which is manufactured in outer space, and ``(2) which was-- ``(A) launched from, and returned to Earth, within the United States, or ``(B) manufactured at a facility in outer space which is owned by 1 or more United States persons, shall be exempt from all Federal excises, imposts, and duties and any other Federal tariffs. ``(d) Phaseout of Benefits.--In the case of a taxable year beginning after December 31, 2025, the amount excluded under subsection (a) shall be reduced (but not below zero) by x/20th's of the amount excludable without regard to this subsection, where `x' is the number of years such taxable year is after the last taxable year beginning before January 1, 2026. A similar rule shall apply to the benefits under subsection (c).'' (2) Clerical amendment.--The table of sections for part III of such Code is amended by striking the last item and inserting the following new items: ``Sec. 139. Space-related income. ``Sec. 140. Cross references to other Acts.'' (b) Capital Gains Exclusion.-- (1) In general.--Part I of subchapter P of such Code (relating to treatment of capital gains) is amended by adding at the end the following new section: ``SEC. 1203. EXCLUSION FOR GAINS OF QUALIFIED SPACE CORPORATIONS. ``(a) In General.--Gross income shall not include gain on the sale or exchange of any stock of a qualified space corporation. ``(b) Qualified Space Corporation.--For purposes of subsection (a), the term `qualified space corporation' means, with respect to any taxable year, a domestic corporation which is a C corporation if-- ``(1) such corporation is organized exclusively for providing to unrelated persons-- ``(A) any product which is manufactured by the corporation in outer space, or ``(B) any service provided by the corporation in or from outer space, and ``(2) such corporation derives at least 90 percent of its gross receipts from the active conduct of a trade or business of providing a product or service described in paragraph (1). Such term shall not include a corporation providing a service or product described in section 139(b)(2).''. (2) Clerical amendment.--The table of sections for part I of subchapter P of such Code is amended by adding at the end the following new item: ``Sec. 1203. Exclusion for gains of qualified space corporations.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 1999. <all>