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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1688 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1688

  To amend the Internal Revenue Code of 1986 to treat spaceports like 
             airports under the exempt facility bond rules.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            November 19 (legislative day, November 2), 1993

  Mr. Graham (for himself, Mr. Domenici, and Mr. Mack) 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 treat spaceports like 
             airports under the exempt facility bond rules.

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

SECTION 1. SPACEPORTS TREATED LIKE AIRPORTS UNDER EXEMPT FACILITY BOND 
              RULES.

    (a) In General.--Paragraph (1) of section 142(a) of the Internal 
Revenue Code of 1986 (relating to exempt facility bond) is amended to 
read as follows:
            ``(1) airports and spaceports,''.
    (b) Treatment of Ground Leases.--Paragraph (1) of section 142(b) of 
such Code is amended by adding at the end thereof the following new 
subparagraph:
                    ``(C) Special rule for spaceport ground leases.--
                For purposes of subparagraph (A), spaceport property 
                which is located on land owned by the United States and 
                which is leased to a governmental unit shall be treated 
                as owned by such unit if--
                            ``(i) the lease term (as defined in section 
                        168(i)(3)) is at least 15 years, and
                            ``(ii) such unit would be treated as owning 
                        such property if such lease term were equal to 
                        the useful life of such property.''.
    (c) Paragraph (3) of section 149(b) of such Code is amended by 
adding at the end thereof the following new subparagraph:
                    ``(E) Exemption for spaceports.--Paragraph (1) 
                shall not apply to any exempt facility bond issued as 
                part of an issue described in paragraph (1) of section 
                142(a) to provide a spaceport in situations where--
                            ``(i) the guarantee of the United States 
                        (or an agency or instrumentality thereof) is 
                        the result of payment of rent, user fees, or 
                        other charges by the United States (or any 
                        agency or instrumentality thereof), and
                            ``(ii) the payment of the rent, user fees, 
                        or other charges is for, and conditioned upon 
                        the use of the spaceport by the United States 
                        (or any agency or instrumentality thereof).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

                                 <all>
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