I 

117TH CONGRESS 

1ST SESSION H. R. 1369 

To amend the Internal Revenue Code of 1986 to provide bonus depreciation 

for certain space launch expenditures, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 25, 2021 

Mr. POSEY (for himself and Mr. CRIST) 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 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 2021’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) The United States is the only nation with 

9 a competitive commercial space launch industry. 


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1 (2) A robust domestic launch industry and ca2 pability is crucial to the United States’ continuing 

3 economic, national security, scientific, and explo4 ration leadership. 

5 (3) Commercial space launch vehicles manufac6 tured and launched in the United States by United 

7 States launch service providers benefit national secu8 rity and the national economy, earth and space 

9 science, and human spaceflight, and are enablers of 

10 the global space economy. 

11 (4) Commercial space launch vehicles manufac12 tured and launched in the United States by United 

13 States launch service providers are used for virtually 

14 all United States national security payloads, and 

15 therefore, are indispensable to the security of the 

16 United States, as well as its allies and friends. 

17 (5) Multiple American companies are developing 

18 small launch vehicles to compete in the domestic and 

19 international commercial launch market. These com20 panies are financed predominately by private capital, 

21 are independently developing capabilities, and are 

22 primarily serving commercial customers. 

23 (6) Several foreign governments have taken no24 tice of U.S. market growth and have begun to fund 

25 their own vehicles to compete within the same marVerDate Sep 11 2014 02:02 Mar 22, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1369.IH H1369

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1 ket. While some of these international vehicles are 

2 putatively ‘‘private,’’ most benefit from subsidies or 

3 developmental support from their national govern4 ments. 

5 (7) The 2019 Report to Congress of the United 

6 States-China Economic and Security Review Com7 mission stated, ‘‘China is taking steps to establish a 

8 commanding position in the commercial launch and 

9 satellite sectors relying in part on aggressive state10 backed financing that foreign market-driven compa11 nies cannot match’’. 

12 (8) The report further adds, ‘‘China has al13 ready succeeded in undercutting some U.S. and 

14 other foreign launch and satellite providers in the 

15 international market, threatening to hollow out these 

16 countries’ space industrial bases’’. 

17 (9) China announced a plan to advance its 

18 Space ambitions by creating a Space Economic Zone 

19 to generate $10 trillion annually. 

20 (10) The U.S. commercial launch industry, 

21 whose viability the National Aeronautics and Space 

22 Administration and the Department of Defense de23 pend on to launch critical national assets, is forced 

24 to compete with state-backed launch enterprises 


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1 across the globe whose launch providers are not re2 quired to be profitable. 

3 (11) A strong domestic space launch industry is 

4 in the national security interest of the United 

5 States. 

6 (12) Foreign launch providers are heavily sub7 sidized by their governments and use these subsidies 

8 to intentionally price below cost in an effort to un9 dercut American competition, materially harming the 

10 American industrial base. 

11 (13) Increased use of United States-manufac12 tured commercial launch vehicles launched in the 

13 United States by United States launch service pro14 viders should be encouraged. 

15 (14) Congress supports continued United States 

16 leadership in space. 

17 SEC. 3. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC 

18 SPACE LAUNCH PROPERTY. 

19 (a) ALLOWANCE OF BONUS DEPRECIATION FOR

20 QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.—Sec21 tion 168(k)(2)(A) of the Internal Revenue Code of 1986 

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

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

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

25 adding at the end the following new subclause: 


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1 ‘‘(VI) which is qualified domestic 

2 space launch property (as defined in 

3 paragraph (11)),’’. 

4 (b) EXTENSION OF TERMINATION OF BONUS DEPRE5 CIATION FOR QUALIFIED DOMESTIC SPACE LAUNCH

6 PROPERTY.— 

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

8 the Internal Revenue Code of 1986 is amended by 

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

10 ‘‘before January 1, 2027 (in the case of qualified do11 mestic space launch property, before January 1, 

12 2033).’’. 

13 (2) APPLICATION OF APPLICABLE PERCENT14 AGE.—Section 168(k)(6) of such Code is amended 

15 by adding at the end the following new subpara16 graph: 

17 ‘‘(D) RULE FOR QUALIFIED DOMESTIC

18 SPACE LAUNCH PROPERTY.—Notwithstanding 

19 any other provisions of this paragraph, in the 

20 case of any qualified property which is qualified 

21 domestic space launch property, the term ‘appli22 cable percentage’ means, in the case of property 

23 placed in service after December 31, 2023, and 

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


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1 (c) QUALIFIED DOMESTIC SPACE LAUNCH PROP2 ERTY DEFINED.—Section 168(k) of the Internal Revenue 

3 Code of 1986 is amended by adding at the end the fol4 lowing new paragraph: 

5 ‘‘(11) QUALIFIED DOMESTIC SPACE LAUNCH

6 PROPERTY DEFINED.—For purposes of this sub7 section— 

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

9 domestic space launch property’ means property 

10 placed in service before January 1, 2033, that 

11 is— 

12 ‘‘(i) a space transportation vehicle or 

13 payload (as such terms are defined in sec14 tion 50101 of title 51, United States Code) 

15 that is launched from the United States, or 

16 ‘‘(ii) other property or equipment 

17 placed in service for the purpose of facili18 tating a space launch from the United 

19 States. 

20 ‘‘(B) SPECIAL RULE FOR SPACE LAUNCHES

21 FROM AIRCRAFT.—A space transportation vehi22 cle or payload that is launched from an aircraft 

23 shall be considered to be launched from the 

24 United States if, and only if, such space trans25 portation vehicle or payload is— 


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1 ‘‘(i) substantially manufactured within 

2 the United States, as determined by the 

3 Secretary, and 

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

5 flight that originated from United States 

6 soil. 

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

8 States’ includes the possessions of the United 

9 States.’’. 

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

11 this section shall apply to property placed in service after 

12 December 31, 2023. 

Æ 


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