II 

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. 

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 2023’’. 

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 04:35 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S589.IS S589

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•S 589 IS

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

2 is amended— 

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

4 (III), 

5 (2) by striking ‘‘or’’ at the end of subclause 

6 (IV), 

7 (3) by adding ‘‘or’’ at the end of subclause (V), 

8 and 

9 (4) by adding at the end the following new sub10 clause: 

11 ‘‘(VI) which is qualified domestic 

12 space launch property (as defined in 

13 paragraph (11)),’’. 

14 (b) EXTENSION OF TERMINATION OF BONUS DEPRE15 CIATION FOR QUALIFIED DOMESTIC SPACE LAUNCH

16 PROPERTY.— 

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

18 the Internal Revenue Code of 1986 is amended by 

19 inserting ‘‘(in the case of qualified domestic space 

20 launch property, before January 1, 2033)’’ after 

21 ‘‘before January 1, 2027’’. 

22 (2) APPLICATION OF APPLICABLE PERCENT23 AGE.—Section 168(k)(6) of such Code is amended 

24 by adding at the end the following new subpara25 graph: 


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•S 589 IS

1 ‘‘(D) RULE FOR QUALIFIED DOMESTIC

2 SPACE LAUNCH PROPERTY.—Notwithstanding 

3 any other provisions of this paragraph, in the 

4 case of any qualified property which is qualified 

5 domestic space launch property, the term ‘appli6 cable percentage’ means, in the case of property 

7 placed in service after December 31, 2023, and 

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

9 (c) QUALIFIED DOMESTIC SPACE LAUNCH PROP10 ERTY DEFINED.—Section 168(k) of the Internal Revenue 

11 Code of 1986 is amended by adding at the end the fol12 lowing new paragraph: 

13 ‘‘(11) QUALIFIED DOMESTIC SPACE LAUNCH

14 PROPERTY DEFINED.—For purposes of this sub15 section— 

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

17 domestic space launch property’ means property 

18 placed in service before January 1, 2033, that 

19 is— 

20 ‘‘(i) a space transportation vehicle or 

21 payload (as such terms are defined in sec22 tion 50101 of title 51, United States Code) 

23 that is launched from the United States, or 

24 ‘‘(ii) other property or equipment 

25 placed in service for the purpose of faciliVerDate Sep 11 2014 04:35 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S589.IS S589

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1 tating a space launch from the United 

2 States. 

3 ‘‘(B) SPECIAL RULE FOR SPACE LAUNCHES

4 FROM AIRCRAFT.—A space transportation vehi5 cle or payload that is launched from an aircraft 

6 shall be considered to be launched from the 

7 United States if, and only if, such space trans8 portation vehicle or payload is— 

9 ‘‘(i) substantially manufactured within 

10 the United States, as determined by the 

11 Secretary, and 

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

13 flight that originated from United States 

14 soil. 

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

16 States’ includes the possessions of the United 

17 States.’’. 

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

19 this section shall apply to property placed in service after 

20 December 31, 2023. 

Æ 


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