I 
118TH CONGRESS 
1ST SESSION H. R. 1363 
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 
MARCH 3, 2023 
Mr. POSEY (for himself and Mr. SOTO) 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Space Com-
merce Act of 2023’’. 
SEC. 2. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC 
SPACE LAUNCH PROPERTY. 
(a) ALLOWANCE
OF BONUS DEPRECIATION
FOR 
QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.—Sec-
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tion 168(k)(2)(A)(i) of the Internal Revenue Code of 1986 
is amended— 
(1) by striking ‘‘or’’ at the end of subclause 
(III), 
(2) by striking ‘‘or’’ at the end of subclause 
(IV), 
(3) by adding ‘‘or’’ at the end of subclause (V), 
and 
(4) by adding at the end the following new sub-
clause: 
‘‘(VI) which is qualified domestic 
space launch property (as defined in 
paragraph (11)),’’. 
(b) EXTENSION OF TERMINATION OF BONUS DEPRE-
CIATION
FOR QUALIFIED DOMESTIC SPACE LAUNCH 
PROPERTY.— 
(1) IN GENERAL.—Section 168(k)(2)(A)(iii) of 
the Internal Revenue Code of 1986 is amended by 
inserting ‘‘(in the case of qualified domestic space 
launch property, before January 1, 2033)’’ after 
‘‘before January 1, 2027’’. 
(2) APPLICATION
OF
APPLICABLE
PERCENT-
AGE.—Section 168(k)(6) of such Code is amended 
by adding at the end the following new subpara-
graph: 
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‘‘(D) RULE
FOR
QUALIFIED
DOMESTIC 
SPACE
LAUNCH
PROPERTY.—Notwithstanding 
any other provisions of this paragraph, in the 
case of any qualified property which is qualified 
domestic space launch property, the term ‘appli-
cable percentage’ means, in the case of property 
placed in service after December 31, 2023, and 
before January 1, 2033, 100 percent.’’. 
(c) QUALIFIED DOMESTIC SPACE LAUNCH PROP-
ERTY DEFINED.—Section 168(k) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(11) QUALIFIED
DOMESTIC
SPACE
LAUNCH 
PROPERTY
DEFINED.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
domestic space launch property’ means property 
placed in service before January 1, 2033, that 
is— 
‘‘(i) a space transportation vehicle or 
payload (as such terms are defined in sec-
tion 50101 of title 51, United States Code) 
that is launched from the United States, or 
‘‘(ii) other property or equipment 
placed in service for the purpose of facili-
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tating a space launch from the United 
States. 
‘‘(B) SPECIAL RULE FOR SPACE LAUNCHES 
FROM AIRCRAFT.—A space transportation vehi-
cle or payload that is launched from an aircraft 
shall be considered to be launched from the 
United States if, and only if, such space trans-
portation vehicle or payload is— 
‘‘(i) substantially manufactured within 
the United States, as determined by the 
Secretary, and 
‘‘(ii) launched from an aircraft on a 
flight that originated from United States 
soil. 
‘‘(C) UNITED STATES.—The term ‘United 
States’ includes the possessions of the United 
States.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2023. 
Æ 
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