I 
116TH CONGRESS 
2D SESSION 
H. R. 6783 
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 
MAY 8, 2020 
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. 
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 2020’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The United States is the only nation with 
a competitive commercial space launch industry. 
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(2) A robust domestic launch industry and ca-
pability is crucial to the United States continuing 
economic, national security, scientific, and explo-
ration leadership. 
(3) Commercial space launch vehicles manufac-
tured and launched in the United States by United 
States launch service providers benefit national secu-
rity and the national economy, earth and space 
science, and human spaceflight, and are enablers of 
the global space economy. 
(4) Commercial space launch vehicles manufac-
tured and launched in the United States by United 
States launch service providers are used for virtually 
all United States national security payloads, and 
therefore, are indispensable to the security of the 
United States, as well as its allies and friends. 
(5) Multiple American companies are developing 
small launch vehicles to compete in the domestic and 
international commercial launch market. These com-
panies are financed predominately by private capital, 
are independently developing capabilities, and are 
primarily serving commercial customers. 
(6) Several foreign governments have taken no-
tice of U.S. market growth and have begun to fund 
their own vehicles to compete within the same mar-
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ket. While some of these international vehicles are 
putatively ‘‘private’’, most benefit from subsidies or 
developmental support from their national govern-
ments. 
(7) The 2019 Report to Congress of the United 
States-China Economic and Security Review Com-
mission stated, ‘‘China is taking steps to establish a 
commanding position in the commercial launch and 
satellite sectors relying in part on aggressive state- 
backed financing that foreign market-driven compa-
nies cannot match’’. 
(8) The report further adds, ‘‘China has al-
ready succeeded in undercutting some U.S. and 
other foreign launch and satellite providers in the 
international market, threatening to hollow out these 
countries’ space industrial bases’’. 
(9) China announced a plan to advance its 
Space ambitions by creating a Space Economic Zone 
to generate $10 trillion annually. 
(10) The U.S. commercial launch industry, 
whose viability the National Aeronautics and Space 
Administration and the Department of Defense de-
pend on to launch critical national assets, is forced 
to compete with state-backed launch enterprises 
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across the globe whose launch providers are not re-
quired to be profitable. 
(11) A strong domestic space launch industry is 
in the national security interest of the United 
States. 
(12) Foreign launch providers are heavily sub-
sidized by their governments and use these subsidies 
to intentionally price below cost in an effort to un-
dercut American competition, materially harming the 
American industrial base. 
(13) Increased use of United States-manufac-
tured commercial launch vehicles launched in the 
United States by United States launch service pro-
viders should be encouraged. 
(14) Congress supports continued United States 
leadership in space. 
SEC. 3. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC 
SPACE LAUNCH PROPERTY. 
(a) ALLOWANCE
OF BONUS DEPRECIATION
FOR 
QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.—Sec-
tion 168(k)(2)(A) of the Internal Revenue Code of 1986 
is amended in clause (i), by striking ‘‘or’’ at the end of 
subclause (III), by striking ‘‘or’’ at the end of subclause 
(IV), by adding ‘‘or’’ at the end of subclause (V), and by 
adding at the end the following new subclause: 
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‘‘(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 
striking ‘‘before January 1, 2027.’’ and inserting 
‘‘before January 1, 2027 (in the case of qualified do-
mestic space launch property, before January 1, 
2033).’’. 
(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: 
‘‘(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.’’. 
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(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-
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— 
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‘‘(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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