SPACE Tax Act
Bill: H.R.7547 | Sponsor: Rep. Blumenauer, Earl (D-OR)
Policy area: Taxation

Summary:
Securing Protections Against Carbon Emissions Tax Act or the SPACE Tax Act
This bill imposes excise taxes on (1) the taxable space transportation of a passenger other than crew or a government astronaut, and (2) each taxable space launch of a space vehicle (i.e., any launch vehicle and any reentry vehicle).

To amend the Internal Revenue Code of 1986 to impose excise taxes on 
                        passenger space travel.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing Protections Against Carbon 
Emissions Tax Act'' or as the ``SPACE Tax Act''.

SEC. 2. EXCISE TAXES ON PASSENGER SPACE TRAVEL.

    (a) In General.--Chapter 33 of the Internal Revenue Code of 1986 is 
amended by inserting after subchapter C the following new subchapter:

                 ``Subchapter D--Passenger Space Travel

``Sec. 4285. Passenger tax.
``Sec. 4286. Launch tax.
``Sec. 4287. Definitions and special rules.

``SEC. 4285. PASSENGER TAX.

    ``(a) In General.--There is hereby imposed on the amount paid for 
taxable space transportation of any non-exempt person a tax equal to 10 
percent of the amount so paid.
    ``(b) By Whom Paid.--The taxes imposed by this section shall be 
paid by the person making the payment subject to tax.
    ``(c) Taxable Space Transportation.--For purposes of this section, 
the term `taxable space transportation' means transportation on any 
space vehicle if the launch or reentry of such vehicle is required to 
be licensed under chapter 509 of title 51, United States Code.

``SEC. 4286. LAUNCH TAX.

    ``(a) In General.--There is hereby imposed on each taxable space 
launch a tax equal to--
            ``(1) $2,000,000 if any portion of the intentional flight 
        path of any passenger-carrying portion of the space vehicle is 
        other than a suborbital trajectory, and
            ``(2) $100,000 in any other case.
    ``(b) By Whom Paid.--The tax imposed by this section shall be paid 
by the person which obtains (or is required to obtain) the license 
described in subsection (c)(1).
    ``(c) Taxable Space Launch.--For purposes of this section, the term 
`taxable space launch' means any launch of a space vehicle if--
            ``(1) such launch is required to be licensed under chapter 
        509 of title 51, United States Code, and
            ``(2) one or more non-exempt persons are transported by 
        such vehicle.
    ``(d) Treatment of Launch and Reentry Vehicles Which Are Launched 
Together.--A launch vehicle and a reentry vehicle which are launched 
together shall be treated as a single space vehicle for purposes of 
this section.
    ``(e) Inflation Adjustment.--In the case of any calendar year after 
2022, each dollar amount in subsection (a) shall be increased by an 
amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year, determined by 
        substituting `calendar year 2021' for `calendar year 2016' in 
        subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded 
to the nearest dollar.

``SEC. 4287. DEFINITIONS AND SPECIAL RULES.

    ``(a) Definitions.--For purposes of this chapter--
            ``(1) Space vehicle.--The term `space vehicle' means any 
        launch vehicle and any reentry vehicle.
            ``(2) Non-exempt person.--The term `non-exempt person' 
        means any person other than--
                    ``(A) crew, or
                    ``(B) a government astronaut.
            ``(3) Other terms.--The following terms shall have the same 
        meaning given such terms in section 50902 of title 51, United 
        States Code:
                    ``(A) Crew, except that in no event shall a person 
                be treated as crew for purposes of this chapter if the 
                amount which would be subject to tax under section 4285 
                if such person was not so treated exceeds the amount of 
                compensation that such person receives for services as 
                crew.
                    ``(B) Government astronaut.
                    ``(C) Launch vehicle.
                    ``(D) Reentry vehicle.
                    ``(E) Suborbital trajectory.
    ``(b) Regulatory Authority.--The Secretary may issue such 
regulation or other guidance as the Secretary determines necessary or 
appropriate to carry out the purposes of this subchapter, including 
rules similar to the rules of subsections (a), (b), (c), and (d) of 
section 4263 with respect to the taxes imposed by section 4285.''.
    (b) Credit or Refund to Certain Persons Collecting Passenger Tax.--
Section 6415 of such Code is amended by striking ``or 4271'' inserting 
``4271, or 4285''.
    (c) Clerical Amendment.--The table of subchapters for chapter 33 of 
such Code is amended by inserting after the item relating to subchapter 
C the following new item:

               ``subchapter d. passenger space travel.''.

    (d) Effective Date.--The amendments made by this section shall 
apply to calendar quarters beginning more than 60 days after the date 
of the enactment of this Act.
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