payer for the taxable year shall not exceed
$100,000.
‘‘(B) CONTROLLED
GROUPS.—For pur-
poses of subparagraph (A), the taxpayer and all
persons who are related persons (as defined in
section 197(c)(3)) with respect to the taxpayer
shall be treated as 1 person, and the $100,000
amount in subparagraph (A) shall be allocated
among the taxpayer and such persons in pro-
portion to their respective sales and exchanges
of stock during the calendar year in which the
taxable year of the taxpayer begins.
‘‘(2) EXCLUDED
GAIN
MUST
BE
LONG-TERM
CAPITAL GAIN.—Subsection (a) shall not apply to
any gain other than long-term capital gain.
‘‘(c) SPACE CORPORATION STOCK.—
‘‘(1) IN GENERAL.—The term ‘space corpora-
tion stock’ means common stock acquired by the tax-
payer on its original issue by a space corporation.
‘‘(2) SPACE
CORPORATION.—The term ‘space
corporation’ means any corporation which, during
each of its 3 taxable years ending before the date of
the sale or exchange by the taxpayer, derived at
least 75 percent of its gross receipts of from the ac-
tive conduct of a trade or business involving the pro-
viding of space-related products or services. For pur-
poses of the preceding sentence, gross receipts at-
tributable to operations within a Commercial Space
Center, or to the establishment or operation of a
Commercial Space Center, shall not be taken into
account.
‘‘(d) APPLICATION OF SECTION.—This section shall
apply only to stock acquired after December 31, 1992, and
before January 1, 2008.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such part III is amended by striking the last item and
inserting the following new item:
‘‘Sec. 137. Gain on space corporation stock.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to stock purchased after December
31, 1992.
SEC. 404. TREATMENT OF BONDS TO FINANCE SPACE
LAUNCH AND LAUNCH SUPPORT FACILITIES.
(a) IN GENERAL.—Subsection (a) of section 142 of
the Internal Revenue Code of 1986 (defining exempt facil-
ity bond) is amended by striking ‘‘or’’ at the end of para-
graph (10), by striking the period at the end of paragraph
(11) and inserting ‘‘, or’’, and by adding at the end thereof
the following:
‘‘(12) space launch and launch support facili-
ties.
Paragraph (12) shall not apply to any bond issued after
December 31, 2007.’’
(b) SPACE LAUNCH AND LAUNCH SUPPORT FACILI-
TIES.—Section 142 of such Code is amended by adding
at the end thereof the following new subsection:
‘‘(j) SPACE LAUNCH AND LAUNCH SUPPORT FACILI-
TIES.—For purposes of subsection (a)(12), the term
‘space launch and launch support facilities’ means—
‘‘(1) all facilities, equipment, and real property
used to prepare space transportation vehicles and
their payloads for transportation to, from, or within
outer space, or in suborbital trajectory or to launch
such vehicles, and
‘‘(2) all facilities, equipment, and real property
used to conduct research and development, manufac-
ture, process, and service space transportation vehi-
cles and their payloads.
For purposes of the preceding sentence, the terms ‘space
transportation vehicles’ and ‘payloads’ have the respective
meanings given such terms by section 3 of the Omnibus
Space Commercialization Act of 1993.’’
(c) EXCEPTION FROM VOLUME CAP.—Paragraph (3)
of section 146(g) of such Code is amended by striking ‘‘or
(2)’’ and inserting ‘‘, (2), or (12)’’ and by inserting ‘‘and
space launch and launch support facilities’’ after
‘‘wharves’’.
(d) CERTAIN ADDITIONAL REQUIREMENTS NOT TO
APPLY TO SPACE LAUNCH AND LAUNCH SUPPORT FA-
CILITIES BONDS.—
(1) Subsection (h) of section 147 of such Code
is amended by adding at the end thereof the follow-
ing new paragraph:
‘‘(3) SPACE
LAUNCH
AND
LAUNCH
SUPPORT
FACILITIES BONDS.—Subsections (a), (b), (c), and
(d) shall not apply to any exempt facility bond de-
scribed in section 142(a)(12).’’
(2) The heading for subsection (h) of section
147 of such Code is amended by striking ‘‘AND
QUALIFIED
501(c)(3) 
BONDS’’ 
and 
inserting
‘‘QUALIFIED 501(c)(3) BONDS, AND SPACE LAUNCH
AND LAUNCH SUPPORT FACILITIES BONDS’’.
(e) FEDERAL GUARANTEED SPACE LAUNCH
AND
LAUNCH SUPPORT FACILITIES BONDS PERMITTED.—
Paragraph (3) of section 149(b) of such Code is amended
by adding at the end thereof the following new subpara-
graph:
‘‘(E) EXCEPTION FOR SPACE LAUNCH AND
LAUNCH
SUPPORT
FACILITIES
BONDS.—Para-
graph (1) shall not apply to any exempt facility
bond described in section 142(a)(12) in situa-
tions where the guarantee of the United States
(or any 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) for the use
of a facility financed with such a bond.’’
(f) 
EXCEPTION
FROM
ADVANCE
REFUNDING
RULES.—Paragraph (2) of section 149(d) of such Code
is amended by striking ‘‘bond).’’ and inserting ‘‘bond or
any 
exempt 
facility 
bond 
described 
in 
section
142(a)(12)).’’
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to obligations issued after the date
of the enactment of this Act.
SEC. 405. SPACE MANUFACTURING INCENTIVE.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically excluded from gross income) is amended
by inserting after section 137 the following new section:
‘‘SEC. 138. SPACE MANUFACTURING INCOME.
‘‘(a) GENERAL RULE.—Gross income shall not in-
clude space manufacturing income.
‘‘(b) SPACE MANUFACTURING INCOME.—For pur-
poses of this section, the term ‘space manufacturing in-
come’ means—
‘‘(1) income derived from the commercial sale
of any product which is manufactured in outer space
and returned to Earth, and
‘‘(2) income of an individual attributable to
services performed in outer space by such individual
in a commercial space activity.
‘‘(c) EXCLUSION FROM TARIFFS, ETC.—Any product
which is manufactured in outer space and returned to
Earth shall be exempt from all Federal excises, imposts,
and duties and any other Federal tariffs.
‘‘(d) PHASEOUT OF BENEFITS.—In the case of a tax-
able year beginning after December 31, 2022, the amount
excluded under subsection (a) shall be reduced (but not
below zero) by x/20th’s of the amount excludable without
regard to this subsection, where ‘x’ is the number of years
such taxable year is after the last taxable year beginning
before January 1, 2023. A similar rule shall apply to the
benefits under subsection (c).’’
(b) CLERICAL AMENDMENT.—The table of sections
for such part III is amended by adding at the end the
following new items:
‘‘Sec. 138. Space manufacturing income.
‘‘Sec. 139. Cross references to other Acts.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1992.
SEC. 406. STATE TAX BENEFITS FOR COMMERCIAL SPACE
ACTIVITIES TO BE ENCOURAGED.
The President shall encourage State and local govern-
ments to offer tax and other incentives to encourage com-
mercial space activities.
TITLE V—MISCELLANEOUS
SEC. 501. ANTITRUST EXEMPTIONS.
(a) STANDING TO CONDUCT CERTAIN LITIGATION.—
Notwithstanding sections 4 and 4C of the Clayton Act (15
U.S.C. 15 and 15C) and section 4 (a) and (b) of the Na-
tional Cooperative Research Act of 1984 (15 U.S.C. 4303
(a) and (b)), standing to conduct litigation arising from
causes of action under such Acts arising out of activities
carried out under this Act is reserved to the Department
of Justice under the direction of the Attorney General and
the Federal Trade Commission.
(b) LIMITATION ON RELIEF.—Notwithstanding sec-
tion 4(a) of the Clayton Act (15 U.S.C. 15(a)) and section
4 of the National Cooperative Research Act of 1984 (15
U.S.C. 4303), and in lieu of the relief specified in such
sections, the sole relief available to the United States act-
ing on its own behalf or on the behalf of any State or
persons, in causes of action under such Acts arising out
of activities carried out under this Act, shall be injunctive
relief.
SEC. 502. EVIDENCE.
In any action against a commercial provider arising
in connection with activities carried out under this Act,
evidence of the failure of such commercial provider to fol-
low military specifications or National Aeronautics and
Space Administration specifications shall not, in and of
itself, constitute proof of negligence on the part of a com-
mercial provider, except where such specifications are spe-
cifically required by contract or in cases concerning emer-
gency flight termination (range safety) equipment when
flights are made from launch sites owned by the Federal
Government.
SEC. 503. REPORT ON LAWS THAT AFFECT SPACE COMMER-
CIALIZATION.
Within one year after the date of enactment of this
Act, the Director of the National Space Council, in co-
operation with the Director of the Office of Space Com-
merce, shall report to the Committee on Science, Space,
and Technology of the House of Representatives and the
Committee on Commerce, Science, and Transportation of
the Senate on the status of laws and treaties in the United
States and internationally that affect the ability of the
United States to commercially exploit space. Such report
shall include recommendations for any changes to such
laws or treaties that may be desirable.
SEC. 504. OFFICE OF SPACE COMMERCE.
(a) ESTABLISHMENT.—There is established within
the Department of Commerce an Office of Space Com-
merce.
(b) FUNCTIONS.—The Office of Space Commerce
shall be the principal unit for the coordination of space-
related issues, programs, and initiatives within the De-
partment of Commerce. The Office’s primary responsibil-
ities shall include—
(1) promoting private sector investment in
space activities by collecting, analyzing, and dissemi-
nating information on space markets, and conduct-
ing workshops and seminars to increase awareness
of commercial space opportunities;
(2) assisting commercial space companies in
their efforts to do business with the United States
Government, and acting as an industry advocate
within the executive branch to ensure that the Fed-
eral Government meets its space-related require-
ment, to the fullest extent feasible, with commer-
cially available space goods and services;
(3) ensuring that the United States Govern-
ment does not compete with the private sector in the
provision of space hardware and services otherwise
available from the private sector;
(4) promoting the export of space-related goods
and services;
(5) representing the Department of Commerce
in the development of United States policies and in
negotiations with foreign countries to ensure free
and fair trade internationally in the area of space
commerce;
(6) seeking the removal of legal, policy, and in-
stitutional impediments to space commerce; and
(7) licensing private sector parties to operate
private remote sensing space systems and supporting
the private sector’s role in the commercial develop-
ment of Landsat remote sensing data distribution.
SEC. 505. SPACE-RELATED RESEARCH.
(a) REQUIRED REPORTS.—Each Federal agency or
department covered by this section shall, within 1 year
after the appropriation of the amount that brings the
agency or department under the coverage of this section,
submit a report to Congress containing a plan for activi-
ties to support space-related research appropriate to the
mission of such agency or department. Once every 2 years
(b) DEFINITIONS.—For the purposes of this sec-
tion—
(1) the term ‘‘Administrator’’ means the Ad-
ministrator of the National Aeronautics and Space
Administration;
(2) the term ‘‘prescription farming’’ means a
method by which farmers can regulate the applica-
tion rates of pesticides, nutrients, and water, among
other inputs, to farmlands in the exact amount nec-
essary to maximize crop yield, without harming the
environment; and
(3) the term ‘‘data voucher’’ means a grant to
enable farmers to purchase land remote sensing in-
formation from commercial entities.
(c) DATA VOUCHERS.—The Secretary of Agriculture
and the Administrator shall jointly develop a mechanism
to provide farmers with data vouchers. Data vouchers
shall be distributed to farmers through the Agricultural
Extension Service, which shall contract with commercial
entities to provide farmers engaged in prescription farm-
ing with timely data on crop conditions, fertilization and
irrigation needs, pest infiltration, and soil conditions.
(d) TRAINING.—The Secretary of Agriculture and the
Administrator shall jointly establish a program to train