I 
108TH CONGRESS 
1ST SESSION H. R. 2358
To amend the Internal Revenue Code of 1986 to encourage the timely develop-
ment of a more cost effective United States commercial space transpor-
tation industry, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 5, 2003
Mr. CALVERT
(for himself, Mr. ORTIZ, Mr. SENSENBRENNER, Mr. 
CUNNINGHAM, Mr. SANDLIN, Mr. BARTLETT of Maryland, Mrs. CAPPS, 
Mr. WELDON of Florida, Mr. PAUL, Mr. FOLEY, Mr. HINOJOSA, Mr. 
LUCAS of Oklahoma, Mr. BARTON of Texas, Mr. DOOLITTLE, and Mr. 
BURGESS) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
the timely development of a more cost effective United 
States commercial space transportation industry, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Invest in Space Now Act of 2003’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Purposes. 
Sec. 4. Definitions. 
Sec. 5. Credit for purchase of space transportation vehicle provider stock. 
Sec. 6. United States commercial space transportation vehicle authorization.
SEC. 2. FINDINGS. 
The Congress hereby finds that: 
(1) The United States commercial space trans-
portation industry is an essential part of the na-
tional economy. 
(2) Opportunities for United States commercial 
providers are growing as international markets ex-
pand. 
(3) The development of the United States com-
mercial space transportation industry is consistent 
with the national security needs and foreign policy 
interests of the United States. 
(4) United States trading partners have been 
able to lower their commercial space transportation 
prices aggressively either through direct cash pay-
ments for commercially targeted product develop-
ment or with indirect benefits derived from non-
market economy status. 
(5) Because United States incentives for space 
transportation development have historically focused 
on civil and military rather than commercial use, 
United States space transportation costs have re-
mained comparatively high, and United States space 
transportation technology has not been commercially 
focused. 
(6) As a result, the United States share of the 
world commercial market for space transportation 
has decreased from nearly 100 percent 20 years ago 
to approximately 47 percent in 1998. 
(7) In order to avoid undue reliance on foreign 
space transportation services, the United States 
must strive to have sufficient domestic capacity as 
well as the highest quality and the lowest cost per 
service provided. 
(8) A successful high quality, lower cost United 
States commercial space transportation industry 
should also lead to substantial United States tax-
payer savings through collateral lower United States 
Government costs for its space access requirements. 
(9) Opening the commercial opportunities of 
space to the American aerospace industry must be a 
high priority of the United States Government as we 
begin the 21st century. 
(10) Opening space and maintaining United 
States leadership in the world market does not re-
quire massive Government intrusion, but enough 
Government support on an incremental and timely
basis to enable the more cost effective United States 
private sector to build lower cost space transpor-
tation vehicles. 
(11) Private sector companies across the United 
States are already attempting to develop a variety of 
lower cost space transportation vehicles, but lack of 
sufficient private financing, particularly in the early 
stages of development, has proven to be a major ob-
stacle, an obstacle our trading partners have re-
moved by providing direct access to government 
funding. 
(12) Given the strengths and creativity of pri-
vate industry in the United States, a more effective 
alternative to the approach of our trading partners 
is for the United States Government to provide lim-
ited incentives industry wide to assist qualifying 
United States private sector companies obtain other-
wise unavailable private equity financing for the crit-
ical development stages of a project, while at the 
same time keeping Government involvement at a 
minimum. 
SEC. 3. PURPOSES. 
The purposes of this Act are—
(1) to ensure availability of otherwise unavail-
able private sector equity financing for United
States private sector development of commercial 
space transportation vehicles which will have trans-
portation costs significantly below current levels; and 
(2) as a result—
(A) to avoid undue reliance on foreign 
space transportation services; 
(B) to reduce substantially United States 
Government space transportation expenditures; 
(C) to increase the international competi-
tiveness of the United States space industry; 
(D) to encourage the growth of space-re-
lated commerce in the United States and inter-
nationally; and 
(E) to open the space frontier to the 
American people. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(2) SPACE
LAUNCH
SITE.—The term ‘‘space 
launch site’’ means a location from which a launch 
or landing takes place and includes all facilities lo-
cated on, or components of, a launch or landing site,
whether real or personal property, which are nec-
essary to conduct a launch, whether on land, sea,
in the Earth’s atmosphere, or beyond the Earth’s 
atmosphere. 
(3) SPACE
TRANSPORTATION
VEHICLE.—The 
term ‘‘space transportation vehicle’’ includes all 
types of vehicles, whether now in existence, devel-
oped in the future, or currently under design, devel-
opment, construction, reconstruction, or recondi-
tioning, which are constructed in the United States 
by a United States commercial provider and owned 
by the commercial provider, for the purpose of oper-
ating in, or transporting a payload to, from, or with-
in, outer space, or in suborbital trajectory. 
(4) 
SUBORBITAL
TRAJECTORY.—The 
term 
‘‘suborbital trajectory’’ means a trajectory that has 
a significant phase of flight during which the vehicle 
generates neither thrust nor significant aerodynamic 
nor aerostatic lift and which occurs in some part 
above 150,000 feet above mean sea level. 
(5) STATE.—The term ‘‘State’’ means any 
State in the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Virgin Is-
lands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and any other 
commonwealth, territory, or possession of the United 
States.