American Space Commerce Act of 2021
This bill allows a special allowance for bonus depreciation for qualified domestic space launch property and extends the termination of such allowance until the end of 2032. The bill defines qualified domestic space launch property as property placed in service before January 1, 2033, that is (1) a space transportation vehicle or payload that is launched from the United States, or (2) other property or equipment placed in service to facilitate a space launch from the United States.
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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Space Commerce Act of 
2021''.

SEC. 2. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC SPACE LAUNCH PROPERTY.

    (a) Allowance of Bonus Depreciation for Qualified Domestic Space 
Launch Property.--Section 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:
                                    ``(VI) which is qualified domestic 
                                space launch property (as defined in 
                                paragraph (11)),''.
    (b) Extension of Termination of Bonus Depreciation 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 domestic space launch property, before January 1, 
        2033).''.
            (2) Application of applicable percentage.--Section 
        168(k)(6) of such Code is amended by adding at the end the 
        following new subparagraph:
                    ``(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 
                `applicable percentage' means, in the case of property 
                placed in service after December 31, 2023, and before 
                January 1, 2033, 100 percent.''.
    (c) Qualified Domestic Space Launch Property Defined.--Section 
168(k) of the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
            ``(11) Qualified domestic space launch property defined.--
        For purposes of this subsection--
                    ``(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 section 
                        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 facilitating a 
                        space launch from the United States.
                    ``(B) Special rule for space launches from 
                aircraft.--A space transportation vehicle or payload 
                that is launched from an aircraft shall be considered 
                to be launched from the United States if, and only if, 
                such space transportation vehicle or payload is--
                            ``(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.
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American Space Commerce Act of 2021
A bill to amend the Internal Revenue Code of 1986 to provide bonus depreciation for certain space launch expenditures, and for other purposes.
American Space Commerce Act of 2021
Sen. Rubio, Marco