II 

116TH CONGRESS 

2D SESSION S. 3875 

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 3, 2020 

Mr. RUBIO (for himself, Mr. SCOTT of Florida, Mr. CRUZ, Mr. WICKER, and 

Mrs. FEINSTEIN) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Space Com5 merce Act of 2020’’. 

6 SEC. 2. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC 

7 SPACE LAUNCH PROPERTY. 

8 (a) ALLOWANCE OF BONUS DEPRECIATION FOR

9 QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.—SecVerDate Sep 11 2014 17:42 Jun 20, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3875.IS S3875

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1 tion 168(k)(2)(A) of the Internal Revenue Code of 1986 

2 is amended in clause (i), by striking ‘‘or’’ at the end of 

3 subclause (III), by striking ‘‘or’’ at the end of subclause 

4 (IV), by adding ‘‘or’’ at the end of subclause (V), and by 

5 adding at the end the following new subclause: 

6 ‘‘(VI) which is qualified domestic 

7 space launch property (as defined in 

8 paragraph (11)),’’. 

9 (b) EXTENSION OF TERMINATION OF BONUS DEPRE10 CIATION FOR QUALIFIED DOMESTIC SPACE LAUNCH

11 PROPERTY.— 

12 (1) IN GENERAL.—Section 168(k)(2)(A)(iii) of 

13 the Internal Revenue Code of 1986 is amended by 

14 striking ‘‘before January 1, 2027.’’ and inserting 

15 ‘‘before January 1, 2027 (in the case of qualified do16 mestic space launch property, before January 1, 

17 2033).’’. 

18 (2) APPLICATION OF APPLICABLE PERCENT19 AGE.—Section 168(k)(6) of such Code is amended 

20 by adding at the end the following new subpara21 graph: 

22 ‘‘(D) RULE FOR QUALIFIED DOMESTIC

23 SPACE LAUNCH PROPERTY.—Notwithstanding 

24 any other provisions of this paragraph, in the 

25 case of any qualified property which is qualified 


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1 domestic space launch property, the term ‘appli2 cable percentage’ means, in the case of property 

3 placed in service after December 31, 2023, and 

4 before January 1, 2033, 100 percent.’’. 

5 (c) QUALIFIED DOMESTIC SPACE LAUNCH PROP6 ERTY DEFINED.—Section 168(k) of the Internal Revenue 

7 Code of 1986 is amended by adding at the end the fol8 lowing new paragraph: 

9 ‘‘(11) QUALIFIED DOMESTIC SPACE LAUNCH

10 PROPERTY DEFINED.—For purposes of this sub11 section— 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 domestic space launch property’ means property 

14 placed in service before January 1, 2033, that 

15 is— 

16 ‘‘(i) a space transportation vehicle or 

17 payload (as such terms are defined in sec18 tion 50101 of title 51, United States Code) 

19 that is launched from the United States, or 

20 ‘‘(ii) other property or equipment 

21 placed in service for the purpose of facili22 tating a space launch from the United 

23 States. 

24 ‘‘(B) SPECIAL RULE FOR SPACE LAUNCHES

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1 cle or payload that is launched from an aircraft 

2 shall be considered to be launched from the 

3 United States if, and only if, such space trans4 portation vehicle or payload is— 

5 ‘‘(i) substantially manufactured within 

6 the United States, as determined by the 

7 Secretary, and 

8 ‘‘(ii) launched from an aircraft on a 

9 flight that originated from United States 

10 soil. 

11 ‘‘(C) UNITED STATES.—The term ‘United 

12 States’ includes the possessions of the United 

13 States.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to property placed in service after 

16 December 31, 2023. 

Æ 


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