American Space Commerce Act of 2021

II 117TH CONGRESS 1ST SESSION S. 1968 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 JUNE 8, 2021 Mr. RUBIO (for himself, Mr. WICKER, Mr. SCOTT of Florida, Mr. CRUZ, Mrs. FEINSTEIN, and Mr. PADILLA) 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘American Space Com- 4 merce Act of 2021’’. 5 SEC. 2. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC 6 SPACE LAUNCH PROPERTY. 7 (a) ALLOWANCE OF BONUS DEPRECIATION FOR 8 QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.—Sec- 9 VerDate Sep 11 2014 02:34 Jun 17, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1968.IS S1968 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1968 IS tion 168(k)(2)(A) of the Internal Revenue Code of 1986 1 is amended in clause (i), by striking ‘‘or’’ at the end of 2 subclause (III), by striking ‘‘or’’ at the end of subclause 3 (IV), by adding ‘‘or’’ at the end of subclause (V), and by 4 adding at the end the following new subclause: 5 ‘‘(VI) which is qualified domestic 6 space launch property (as defined in 7 paragraph (11)),’’. 8 (b) EXTENSION OF TERMINATION OF BONUS DEPRE- 9 CIATION FOR QUALIFIED DOMESTIC SPACE LAUNCH 10 PROPERTY.— 11 (1) IN GENERAL.—Section 168(k)(2)(A)(iii) of 12 the Internal Revenue Code of 1986 is amended by 13 striking ‘‘before January 1, 2027.’’ and inserting 14 ‘‘before January 1, 2027 (in the case of qualified do- 15 mestic space launch property, before January 1, 16 2033).’’. 17 (2) APPLICATION OF APPLICABLE PERCENT- 18 AGE.—Section 168(k)(6) of such Code is amended 19 by adding at the end the following new subpara- 20 graph: 21 ‘‘(D) RULE FOR QUALIFIED DOMESTIC 22 SPACE LAUNCH PROPERTY.—Notwithstanding 23 any other provisions of this paragraph, in the 24 case of any qualified property which is qualified 25 VerDate Sep 11 2014 02:34 Jun 17, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1968.IS S1968 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1968 IS domestic space launch property, the term ‘appli- 1 cable percentage’ means, in the case of property 2 placed in service after December 31, 2023, and 3 before January 1, 2033, 100 percent.’’. 4 (c) QUALIFIED DOMESTIC SPACE LAUNCH PROP- 5 ERTY DEFINED.—Section 168(k) of the Internal Revenue 6 Code of 1986 is amended by adding at the end the fol- 7 lowing new paragraph: 8 ‘‘(11) QUALIFIED DOMESTIC SPACE LAUNCH 9 PROPERTY DEFINED.—For purposes of this sub- 10 section— 11 ‘‘(A) IN GENERAL.—The term ‘qualified 12 domestic space launch property’ means property 13 placed in service before January 1, 2033, that 14 is— 15 ‘‘(i) a space transportation vehicle or 16 payload (as such terms are defined in sec- 17 tion 50101 of title 51, United States Code) 18 that is launched from the United States, or 19 ‘‘(ii) other property or equipment 20 placed in service for the purpose of facili- 21 tating a space launch from the United 22 States. 23 ‘‘(B) SPECIAL RULE FOR SPACE LAUNCHES 24 FROM AIRCRAFT.—A space transportation vehi- 25 VerDate Sep 11 2014 02:34 Jun 17, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1968.IS S1968 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1968 IS cle or payload that is launched from an aircraft 1 shall be considered to be launched from the 2 United States if, and only if, such space trans- 3 portation vehicle or payload is— 4 ‘‘(i) substantially manufactured within 5 the United States, as determined by the 6 Secretary, and 7 ‘‘(ii) launched from an aircraft on a 8 flight that originated from United States 9 soil. 10 ‘‘(C) UNITED STATES.—The term ‘United 11 States’ includes the possessions of the United 12 States.’’. 13 (d) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to property placed in service after 15 December 31, 2023. 16 Æ VerDate Sep 11 2014 02:34 Jun 17, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1968.IS S1968 kjohnson on DSK79L0C42PROD with BILLS