In a move aimed at encouraging commercial space ventures, US Senator Bill Nelson announced on August 18 legislation that would provide tax breaks to investors in private space-related businesses.
The Florida Democrat, and former Space Shuttle astronaut,…
In a move aimed at encouraging commercial space ventures, US Senator Bill Nelson announced on August 18 legislation that would provide tax breaks to investors in private space-related businesses.
The Florida Democrat, and former Space Shuttle astronaut, seeks to introduce the Commercial Space Jobs and Investment Act that would amend the Internal Revenue Code of 1986 by allowing investors to write off 20% of their investments in companies that create launch vehicles, re-entry vehicles and related equipment.
He also proposed to create five regional business enterprise zones across the USA where companies would get a 30% tax credit, instead of 20% at the moment, for research and development on space-related tests.
According to the legislation, The Department of Commerce would create these zones in areas where space jobs will be cut. For instance, the Kennedy Space Center (KSC) at Cape Canaveral in Florida may likely lose thousands of jobs in 2011, once the spacecraft operated by NASA is retired from service.
“What we’re doing now is everything we can to ensure KSC’s continued importance to our nation’s space exploration effort, while also broadening the economic opportunities along our Space Coast,” Nelson said in a statement.
As the US space program is undergoing a significant shift, the legislation fits together logically with the decision taken by President Barack Obama’s administration to turn to the commercial sector for low earth orbit human spaceflight.
Influenced by the recommendations of Norman Augustine’s Review of Human Space Flight Plans Committee, the Obama administration cancelled the Constellation Moon program, set to serve as the Space Shuttle’s replacement, to focus on the development of new space technology and the establishment of a strong commercial space sector.
The NASA full year 2011 budget offers US$300m in funding aid to SpaceX and Orbital Sciences for risk reduction Commercial and program acceleration. Both companies were the main beneficiaries of NASA’s Commercial Orbital Transportation Services (COTS) contract to provide cargo supply services to the International Space Station.
Nelson announced his proposals on the same day as NASA and the Commerce Department outlined plans to contribute US$40m to the Space Coast and US$60m for other US regions affected by the end of the Space Shuttle program. The Task Force on Space Industry Workforce and Economic Development also said that US$5m of the US$40m would fund a new Commercial Spaceflight Technical Center to support commercial space launch and re-entry activities.
