Space Florida Supports Tax-Exempt Spaceport Bonds
Space Florida Supports Tax-Exempt Spaceport Bonds
Recommendation Comes from The Select Committee on the Strategic Competition between the United States and the China Communist Party
In the recently released report from the U.S. House Select Committee on the Strategic Competition between the United States and the China Communist Party, the committee recommended that Congress revise the tax code to include provisions for the issuance of private activity bonds for spaceports to encourage the development of such facilities.
“I urge Congress to make spaceport bonds tax-exempt, creating a vital tool to further solidify our nation’s leadership in the emerging space transportation race."
Rob Long, Space Florida
Private activity bonds would align financial incentives with the growing interest in commercial space ventures and provide states and local governments with a potent tool to attract private companies and developers to invest in the construction and expansion of spaceports, which can lead to job creation and economic development in the regions that host them.
Space Florida released the following statement strongly supporting the recommendation.
“As we witness historic records in commercial space transportation activity, the United States must maintain its place as the global leader in space transportation. China’s advancements in space technology and infrastructure demand innovative responses and designating spaceport bonds tax-exempt is such a response," said Rob Long, president and CEO, Space Florida in the statement posted to the Space Florida website.
“From enhancing American national security capabilities to catalyzing private investments in spaceport infrastructure, modernizing space transportation infrastructure financing options will reduce the cost of capital for space transportation projects nationwide and create a more secure, more efficient ecosystem right here from Florida.
“I urge Congress to make spaceport bonds tax-exempt, creating a vital tool to further solidify our nation’s leadership in the emerging space transportation race. By doing so, the United States will remain leaders of this rapidly growing industry, protect our national interests, and continue to reap the economic benefits of commercial space activities.”
The congressional recommendation comes on the heels of the Florida Legislature acting decisively to file a Memorial in support of the U.S. Congress pursuing tax-exempt status for spaceport bonds under the Internal Revenue Code. Senate Bill 370 was filed by Sen. Tom Wright and House Bill 143 was filed by Rep. Tyler Sirois. Space Florida submitted a letter earlier this year to the Internal Revenue Service in support of making spaceport bonds tax-exempt.